UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549
                                   FORM 10-Q



          X    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 
        -----              SECURITIES EXCHANGE ACT OF 1934
                    For the quarterly period ended March 31, 1999

        -----  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                           SECURITIES EXCHANGE ACT OF 1934
               For the transition period from ____________ to ____________


                        Commission file number 0-16946


                                LAB HOLDINGS, INC.                   
              ------------------------------------------------------
              (Exact name of registrant as specified in its charter)


                     Missouri                              43-1039532
           -------------------------------            ------------------
           (State or other jurisdiction of             (I.R.S. Employer
            incorporation or organization)            Identification No.)


                  P.O. Box 7568
           5000 W. 95th Street, Suite 260
               Shawnee Mission, KS                            66207
          --------------------------------              ---------------- 
             (Address of principal                          (Zipcode)
               executive offices)

       Registrant's telephone number, including area code (913) 648-3600
                                                          --------------

-------------------------------------------------------------------------------
           (Former name, former address and former fiscal year,
                      if changed since last report)

Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days.  Yes   X       No       
                                        ----          ----
Number of shares outstanding of only class of Registrant's common stock as of
May 6, 1999:   $1 par value common - 6,489,103


PART I.   FINANCIAL INFORMATION

Item 1.   Financial Statements

LAB HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
---------------------------------------------------------------------
                                             (unaudited)
                                              March 31,   December 31,
                                                 1999         1998
---------------------------------------------------------------------
                                                     (In thousands)
ASSETS
Current assets: 
  Cash and cash equivalents                 $   11,745       15,223
  Accounts receivable                           19,692       18,730
  Current income taxes                             374          400
  Inventories                                    1,361        1,798
  Real estate available for sale                 1,793        3,515
  Prepaid expenses and other current assets      2,589        2,753
  Deferred income taxes                          3,284        3,973
                                              ---------------------
      Total current assets                      40,838       46,392
                                              ---------------------
Property, plant and equipment                   76,365       72,919
  Less accumulated depreciation                 34,653       35,983
                                              ---------------------
    Net property, plant and equipment           41,712       36,936
                                              ---------------------
Other assets: 
  Intangible assets                             14,283       14,825
  Other assets                                   1,149          425
                                              ---------------------
Total Assets                                $   97,982       98,578
                                              =====================

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                          $    5,962        4,393
  Retainage and construction payable             3,473        3,809
  Accrued payroll and benefits                   3,083        4,149
  Other accrued expenses                           567          610
  Other current liabilities                        344          275
  Current portion of long-term debt              1,863        1,860
                                              ---------------------
      Total current liabilities                 15,292       15,096
Long-term debt                                  18,094       18,097
Deferred income taxes                              121          (65)
                                              ---------------------
      Total liabilities                         33,507       33,128
                                              ---------------------
Minority interests                              10,276       10,392
                                              ---------------------
Stockholders' equity:
  Preferred stock of $1 par value.
    Authorized 3,000,000 shares; none issued       --           -- 
  Common stock of $1 par value.
    Authorized 24,000,000 shares;
    issued 7,500,000 shares                      7,500        7,500
  Paid-in capital                                2,921        2,921
  Accumulated other comprehensive income (loss)   (671)        (683)
  Retained earnings                             74,593       75,464
                                              ---------------------
                                                84,343       85,202
  Less cost of 1,010,897 shares
    of treasury stock                           30,144       30,144
                                              ---------------------
      Total stockholders' equity                54,199       55,058
                                              ---------------------
Total Liabilities and Stockholders' Equity  $   97,982       98,578
                                              =====================

See accompanying notes to consolidated financial statements and 
management's discussion and analysis of financial condition and 
results of operations.



LAB HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements Of Earnings
----------------------------------------------------------------------------
                                                    (unaudited)
                                                Three months ended
                                                      March 31,
                                                 1999         1998
----------------------------------------------------------------------------
                                         (in thousands except share amounts)

Sales                                       $   27,328        23,333
Cost of sales                                   15,651        12,959
                                               ---------------------
  Gross profit                                  11,677        10,374
                                                                    
Selling, general and administrative              9,050         7,859
                                               ---------------------
  Earnings from operations                       2,627         2,515

Investment income - net                            147           367
Interest expense                                  (290)          --
Other income (expense)                              (6)           (1)
                                               ---------------------
  Earnings before income taxes                   2,478         2,881
Income taxes                                     1,023         1,304
                                               ---------------------
  Earnings before minority interests             1,455         1,577
Minority interests                                 380           369
                                               ---------------------
  Net earnings                              $    1,075         1,208
                                               =====================

Basic earnings per share                    $      .17           .19
Diluted earnings per share                  $      .17           .18

Dividends per share                         $      .30           .30
Book value per share                        $     8.35          8.62

Weighted average shares outstanding           6,489,103    6,489,103
Shares outstanding end of period              6,489,103    6,489,103


See accompanying notes to consolidated financial statements and management's 
discussion and analysis of financial condition and results of operations.



LAB HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statement of Stockholders' Equity and Comprehensive Income
Three Months Ended March 31, 1999(unaudited)
---------------------------------------------------------------------------
                                            Comprehensive     Stockholders'
                                                Income           Equity
---------------------------------------------------------------------------
                                                    (in thousands)
Common stock:
  Balance, beginning and end of period       $                      7,500
                                                                 --------

Paid-in capital:
  Balance, beginning and end of period                              2,921
                                                                 --------
Retained earnings:
  Balance, beginning of period                                     75,464
  Net earnings                                   1,075              1,075
  Cash dividends paid                                              (1,946)
                                                                 --------
  Balance, end of period                                           74,593
                                                                 --------
Accumulated other comprehensive income (loss)
  Balance, beginning of period                                       (683)
                                                                         
  Foreign currency translation                      12                 12
                                              --------           --------
  Balance, end of period                                             (671)
                                                                 --------

Less:
  Treasury stock:
  Balance, beginning and end of period                             30,144
                                                                 --------

    Totals                                   $   1,087             54,199
                                              ========           ========


See accompanying notes to consolidated financial statements and 
management's discussion and analysis of financial condition and results of 
operations.



LAB HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
------------------------------------------------------------------
                                                    (unaudited)
                                                Three Months Ended
                                                     March 31,
                                                 1999       1998
------------------------------------------------------------------
                                                  (In thousands)
OPERATING ACTIVITIES
Net earnings                                $    1,075      1,208
Adjustments to reconcile net earnings
  to net cash provided by operations:
    Depreciation and amortization                1,637      1,452
    Earnings applicable to minority interests      380        369
    Change in trading portfolio, net               --        (109)
    Change in accounts receivable                 (960)    (2,816)
    Change in accounts payable                     146        972
    Income taxes and other, net                    505         19
                                              -------------------
      Net cash provided by operations            2,783      1,095
                                              -------------------
INVESTING ACTIVITIES
Purchases of investments held to maturity          --      (4,467)
Maturities of investments held to maturity         --         702
Additions to property, plant and equipment,net  (3,855)    (1,725)
Other, net                                        (472)      (367)
                                              -------------------
  Net cash used by investing activities         (4,327)    (5,857)
                                              -------------------
FINANCING ACTIVITIES
Payment of principal on long-term debt              (3)       --
Regular quarterly dividends paid                (1,946)    (1,946)
                                              -------------------
  Net cash used by financing activities         (1,949)    (1,946)
                                              -------------------
Effect of foreign currency translation              15          9
                                              -------------------
Net decrease in cash and cash equivalents       (3,478)    (6,699)
Cash and cash equivalents at
  beginning of period                           15,223     22,129
                                              -------------------
Cash and cash equivalents at end of period  $   11,745     15,430
                                              ===================
Supplemental disclosures of cash flow information:
 Cash paid during the period for:
  Interest                                  $      327        --
                                              ===================
  Income taxes, net                         $      162        109
                                              ===================
See accompanying notes to consolidated financial statements and 
management's discussion and analysis of financial condition and 
results of operations.



LAB HOLDINGS, INC.
Notes to Consolidated Financial Statements
March 31, 1999 and 1998

(1)  The interim financial information furnished herein is unaudited while 
the balance sheet at December 31, 1998 is derived from audited financial 
statements.  In the opinion of management, the financial information 
reflects all adjustments which are necessary to fairly state Lab Holdings' 
financial position at March 31, 1999 and December 31, 1998 and the results 
of its operations and cash flows for the periods ended March 31, 1999 and 
1998.  All adjustments made in the interim period were of a normal 
recurring nature.  The financial statements have been prepared in 
conformity with generally accepted accounting principles appropriate in the 
circumstances, and therefore included in the financial statements are 
certain amounts based on management's informed estimates and judgments.  
The financial information herein is not necessarily representative of a 
full year's operations because levels of sales, interest rates and other 
factors fluctuate throughout the fiscal year.  These same considerations 
apply to all year to year comparisons.  Certain 1998 amounts have been 
reclassified for comparative purposes with no effect on net earnings.  See 
Lab Holdings' Annual Report pursuant to Section 13 to the Securities 
Exchange Act of 1934 (Form 10-K) for additional information not required by 
this Quarter's Report (Form 10-Q).

This Quarterly report on Form 10-Q may contain "forward-looking 
statements," including projections, statements of plans and objectives, 
statements of future economic performance and statements of assumptions 
underlying such statements.  Forward-looking statements involve known and 
unknown risks and uncertainties.  They are usually identified by or are 
associated with such words such as "intend," " believe," "estimate," 
"expect," "anticipate," "hopeful," "should," "may" and similar expressions.  
Many factors could cause actual results to differ materially from those 
that may be expressed or implied in such forward-looking statements, 
including, but not limited to, the volume and pricing of laboratory tests 
performed by LabOne, competition, the extent of market acceptance of 
LabOne's testing services in the healthcare and substance abuse testing 
industries, general economic conditions and other factors detailed from 
time to time in the Company's reports and registration statements filed 
with the Securities and Exchange Commission, including the Company's 
Current Report on Form 8-K dated October 23, 1998.

(2)  Lab Holdings' principal asset consists of its 80.5% ownership of 
LabOne, Inc., a publicly-traded company.  On March 8, 1999, Lab Holdings 
and LabOne jointly announced that the Boards of Directors of both companies 
have approved an agreement to merge the two companies.  A Registration 
Statement covering the proposed transaction was filed with the Securities 
and Exchange Commission on April 13.  Under the merger agreement, LabOne is 
to be merged into Lab Holdings and the combined company's name will be 
changed to LabOne, Inc.  Stockholders of Lab Holdings will have each of 
their Lab Holdings shares split immediately before the merger into 1.5 
shares of the combined company.  Stockholders of LabOne, other than Lab 
Holdings, will be entitled to elect to have each of their existing LabOne 
shares exchanged for one share of the combined company or $12.75 in cash or 
a combination of cash and shares up to a limit of $16.6 million in cash 
(approximately 50% of eligible shares).  The combined company will use cash 
from operations and additional borrowings, if necessary, to cover the 
purchase of shares from LabOne stockholders that choose the cash election 
option.  The merger is subject to approval by the holders of two-thirds of 
the outstanding Lab Holdings shares and a majority of the shares voted by 
LabOne stockholders, other than Lab Holdings and its affiliates, and other 
closing conditions.

(3)  Cash and cash equivalents include demand deposits in banks, money 
market investments and overnight investments that are stated at cost, which 
approximates market value.

(4)  Basic earnings per share is computed using the weighted average number 
of common shares and diluted earnings per share is computed using the 
weighted average number of common shares and dilutive stock options.

Earnings available to common shareholders was adjusted to reflect the 
Company's share of LabOne's earnings based on a diluted ownership after 
taking into account LabOne's common stock equivalents.  The following table 
reconciles net earnings and weighted average shares used to computed basic 
and diluted earnings per share.

                                                 March 31, 1999
                                    -----------------------------------
                                                              Per Share
                                    Net Earnings   Shares      Amount
                                    -----------------------------------
Basic earnings per share           $ 1,075,000    6,489,103     $ .17

Effect of dilutive securities:
  Lab Holdings stock options              --            --
  LabOne stock options                  (3,000)         --
                                    -----------------------------------
Diluted earnings per share         $ 1,072,000    6,489,103     $ .17
                                    ===================================

                                                 March 31, 1998
                                    -----------------------------------
                                    Earnings from
                                     Continuing               Per Share
                                     Operations    Shares      Amount
                                    -----------------------------------
Basic earnings per share           $ 1,208,000    6,489,103     $ .19

Effect of dilutive securities:
  Lab Holdings stock options              --            --
  LabOne stock options                 (23,000)         --
                                    -----------------------------------
Diluted earnings per share         $ 1,185,000    6,489,103     $ .18
                                    ===================================

(5)  The Company, through its subsidiary, LabOne, operates principally in 
three lines of business:  insurance, clinical testing and substance abuse 
testing.  The following table presents the Company's selected financial 
information for each segment.

                                                       Three Months Ended
                                                            March 31,
                                                        1999        1998
                                                       ------------------
                                                          (in thousands)
Sales
  Insurance risk appraisal testing                   $ 17,584      16,822
  Clinical diagnostic testing                           5,958       3,654
  Substance abuse testing                               3,786       2,857
                                                       ------------------
    Total sales                                      $ 27,328      23,333
                                                       ==================

Operating Income
  Insurance services                                 $  4,152       5,212
  Clinical services                                      (959)     (1,935)
  Substance abuse testing                                (119)       (179)
  General corporate expense                              (447)       (583)
                                                       ------------------
    Earnings from operations                            2,627       2,515
  Investment income - net                                 147         367
  Interest expense                                       (290)        --
  Other income (expense)                                   (6)         (1)
                                                       ------------------
    Earnings before income taxes                     $  2,478       2,881
                                                       ==================

Company assets classified as corporate increased significantly due to bond 
proceeds and construction of the new LabOne facility.  There were no 
material changes in assets in the other segments, or in the basis of 
segmentation or measurement of segment operating income or loss.

(6)  Comprehensive income is defined as any change in equity from 
transactions and other events originating from non-owner sources.  For Lab 
Holdings, those changes are composed of reported net income and changes in 
unrealized foreign currency translation adjustments.  The components of 
comprehensive income are as follows.

                                                            March 31,
                                                        1999        1998
                                                       ------------------
                                                          (in thousands)

Net earnings (loss)                                  $  1,075       1,208
                                                                         
Other comprehensive income
  Foreign currency translation                             12           8
                                                       ------------------
      Total Comprehensive Income                     $  1,087       1,216
                                                       ==================

(7)  Contingencies

The Comptroller of the State of Texas has conducted an audit of LabOne for 
sales and use tax compliance for the years 1991 through 1997 and contends 
that LabOne's insurance laboratory services are taxable under the Texas tax 
code.  The Texas Comptroller has issued a tax audit assessment, including 
interest and penalties, of approximately $1.9 million.  LabOne has appealed 
this assessment arguing that its services do not fit within the definition 
of insurance services under the Texas code.  The assessment is under review 
by the Texas State Hearing Attorney.  At this time, LabOne is unable to 
estimate the possible liability, if any, that may be incurred as a result 
of this assessment.






ITEM 2.


MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS.


RESULTS OF OPERATIONS


Selected Financial Data
                                        Three months ended    
                                           March 31,          
                                       ---------------------- 
                                          1999        1998    
                                       ----------  ---------- 

Sales                                $27,328,000  23,333,000  
Earnings from operations             $ 2,627,000   2,515,000  
Investment income - net              $   147,000     367,000  
Net earnings                         $ 1,075,000   1,208,000  

Basic earnings per share             $       .17         .19
Diluted earnings per share           $       .17         .18  
Dividends per share                  $       .30         .30  
Book value per share                 $      8.35        8.62  


Introductory remarks about results of operations

Lab Holdings, Inc.'s (Lab Holdings or Registrant) principal asset consists 
of a majority ownership of LabOne, Inc. (LabOne), together with $6 million 
of related goodwill.  Additionally, Lab Holdings has approximately $5.7 
million of other net assets, consisting primarily of cash, short-term 
investments and income tax receivables.  Prior to October 20, 1997, Lab 
Holdings was named Seafield Capital Corporation (Seafield).  Seafield 
changed its name to Lab Holdings for better identification with its primary 
asset, the approximate 80.5% ownership of LabOne.

On March 8, 1999, Lab Holdings and its subsidiary, LabOne, announced that 
the boards of directors of both companies had approved a definitive 
agreement to merge the two companies.  Under the merger agreement, LabOne 
is to be merged into Lab Holdings, but the survivor's name will be changed 
to "LabOne, Inc."  Stockholders of Lab Holdings will have each of their Lab 
Holdings shares split immediately before the merger into 1.5 shares of the 
survivor.  Stockholders of LabOne, other than Lab Holdings, will be 
entitled to elect to have each of their existing LabOne shares exchanged 
for one share of the survivor or $12.75 in cash or a combination of cash 
and shares.  If the cash election shares exceed a cash limit of $16.6 
million, then the cash will be allocated on a pro rata basis among the cash 
election shares.  The offering of Lab Holdings common stock in the merger 
will only be made by means of the Joint Proxy Statement/Prospectus.

LabOne provides high-quality laboratory testing services to insurance 
companies, physicians and employers.

LabOne provides risk-appraisal laboratory testing services to the insurance 
industry.  The tests performed are specifically designed to assist an 
insurance company in objectively evaluating the mortality and morbidity 
risks posed by policy applicants.  The majority of the testing is performed 
on specimens of individual life insurance policy applicants.  LabOne also 
provides testing services on specimens of individuals applying for 
individual and group medical and disability policies.  Through its 
subsidiary, SBSI, LabOne provides telephone inspections, motor vehicle 
reports, attending physician statements and claims investigation services 
to life and health insurers nationwide.

LabOne's clinical testing services are provided to the healthcare industry 
to aid in the diagnosis and treatment of patients.  LabOne operates only 
one highly automated and centralized laboratory, which LabOne believes has 
significant economic advantages over other conventional laboratory 
competitors.  LabOne markets its clinical testing services to the payers of 
healthcare--insurance companies and self-insured groups. LabOne does this 
through Lab Card(trademark), a Laboratory Benefits Management (LBM) 
program.

The Lab Card Program provides laboratory testing at reduced rates as 
compared to traditional laboratories.  It uses a unique benefit design that 
shares the cost savings with the patient, creating an incentive for the 
patient to help direct laboratory work to LabOne.  Under the Program, the 
patient incurs no out-of-pocket expense when the Lab Card is used, and the 
insurance company or self-insured group receives substantial savings on its 
laboratory charges.  LabOne's LBM programs, including BlueCross BlueShield 
of Tennessee and the Lab Card program, have more than 2.3 million lives 
enrolled.

LabOne is certified by the Substance Abuse and Mental Health Services 
Administration (SAMHSA) to perform substance abuse testing services for 
federally regulated employers and is currently marketing these services 
throughout the country to both regulated and nonregulated employers.  
LabOne's rapid turnaround times and multiple testing options help clients 
reduce downtime for affected employees and meet mandated drug screening 
guidelines.


FIRST QUARTER ANALYSIS

Net sales increased 17% in the first quarter 1999 to $27.3 million from 
$23.3 million in the first quarter 1998.  The increase of $4 million is due 
to increases in clinical laboratory revenue of $2.3 million, substance 
abuse testing (SAT) revenue of $929,000 and insurance services revenue of 
$762,000.

Clinical diagnostic testing revenue increased from $3.7 million to $6 
million for the quarter due to increased testing volumes partially offset 
by a 6% decrease in average revenue per patient.  SAT revenue increased 
from $2.9 million in 1998 to $3.8 million in 1999 due to a 35% increase in 
testing volumes as compared to last year.  

The insurance services division revenue increased $762,000 due to the 
addition of SBSI revenue and growth in non laboratory services revenue, 
partially offset by lower laboratory and kit revenue.  SBSI contributed 
$1.9 million, and non laboratory services revenue increased $300,000 over 
last year.  Insurance laboratory testing revenue decreased $800,000 as a 
result of competitive pressures.  The total number of insurance applicants 
tested in the first quarter 1999 decreased by 4% as compared to the same 
quarter last year.  Average revenue per applicant decreased 2.5%.  Kit and 
container revenue declined due to a decrease in the number of kits sold.

Cost of sales increased $2.7 million or 21% in the first quarter 1999 as 
compared to the prior year, due to increases in payroll, outside services 
such as paramed collections and state motor vehicle report fees, and 
postage expense.  A significant portion of these increases are related to 
the addition of SBSI.  Laboratory overtime and regular labor expense 
increased related to the move to LabOne's new facility.  These increases 
were partially offset by a decrease in insurance kit expenses due to lower 
sales volumes.  Clinical cost of sales expenses were $3.9 million as 
compared to $3.4 million in the first quarter 1998.  SAT cost of sales 
expenses were $2.8 million as compared to $2.1 million in the first quarter 
1998.  Insurance cost of sales expenses increased from $7.5 million to $9 
million primarily due to the addition of SBSI.

As a result of the above factors, gross profit for the quarter increased 
$1.3 million or 13% from $10.4 million in 1998 to $11.7 million in 1999.  
Clinical gross profit increased $1.7 million on an increase in revenue of 
$2.3 million.  SAT gross profit increased $200,000 on an increase in 
revenue of $929,000.  Insurance gross profit decreased $700,000 or 7%.

LabOne's selling, general and administrative expenses increased $1.1 
million or 15% in the first quarter 1999 as compared to the prior year due 
primarily to the inclusion of SBSI and increases in bad debt, depreciation 
and moving expenses.  Insurance expenditures increased to $4.5 million for 
the quarter as compared to $4.1 million in 1998 primarily due to the 
addition of SBSI.  Total clinical expenditures increased $800,000 to $3 
million in 1999 due to an increase in corporate overhead allocations to 
$900,000 from $600,000 in 1998 and an increase in bad debt expense.  SAT 
expenditures were $1.1 million as compared to $1 million last year.  
Closure on the sale of the former laboratory facility resulted in a gain of 
$300,000.  Depreciation expense on the new facility is expected to be less 
than $300,000 per quarter.

Lab Holding's selling, general and administrative expenses increased to 
$256,000 in the first quarter 1999 from $181,000 in the first quarter of 
1998.  Prior to August 7, 1998, Lab Holdings received administrative 
services which were provided by SLH Corporation.  As a result of SLH's 
merger with Syntroleum Corporation on August 7, 1998, the previous services 
agreement with SLH was terminated and Lab Holdings' personnel are employed 
directly by Lab Holdings resulting in increased administration expenses 
during 1999's first quarter.  Goodwill amortization of $368,000 associated 
with Lab Holdings' investment in LabOne was included in the first quarter 
operating results of both 1999 and 1998.

Consolidated earnings from operations increased slightly to $2.6 million in 
1999's first quarter from $2.5 million in the first quarter of 1998.  
LabOne's clinical segment improved $1 million to an operating loss of $1 
million.  The SAT segment improved $100,000 from an operating loss of 
$200,000 in the first quarter 1998 to a loss of $100,000 in 1999.  The 
insurance segment declined $1.1 million to an operating profit of $4.2 
million.

Other investments include liquidity investments.  The return on short-term 
investments is included in the investment income line in the consolidated 
statements of operations.  Investment income decreased to $147,000 in 
1999's first quarter from $367,000 in 1998's first quarter primarily 
reflecting a reduction in capital available for investments.  

Interest expense increased to $290,000 in 1999 first quarter as a result of 
LabOne's new facility being placed in service.  Previously, the interest 
had been capitalized during construction in 1998.  Miscellaneous items 
produced a $6,000 loss in 1999's first quarter as compared to a loss of 
$1,000 in 1998's first quarter.

Tax expense decreased to $1 million in 1999's first quarter from $1.3 
million in 1998's first quarter.  The effective tax rate decreased to 41% 
from 45% due primarily to LabOne's state income tax incentives.

The combined effect of the above factors resulted in net earnings of $1.1 
million or $0.17 diluted earnings per share in the first quarter of 1999, 
compared to net earnings of $1.2 million or $0.18 diluted earnings per 
share in the same period last year.



LIQUIDITY AND CAPITAL RESOURCES

On March 31, 1999, at the holding company level, Lab Holdings had available 
for operations approximately $4.8 million in cash and cash equivalents.  
Lab Holdings' working capital at March 31, 1999 decreased to $4.5 million 
from $5.4 million at December 31, 1998, reflecting costs associated with 
the proposed merger with LabOne.

On a consolidated basis, Lab Holdings had $11.7 million in cash and short-
term investments at March 31, 1999.  Current assets totaled approximately 
$40.8 million while current liabilities totaled $15.3 million. 

Net cash provided by operations increased by $1.7 million to $2.8 million 
in 1999's first quarter compared with $1.1 million in 1998's first quarter, 
primarily attributable to LabOne's slower increase in accounts receivables.

Net cash used by investing activities in 1999's first quarter totaled $4.3 
million, as compared with $5.9 million in 1998's first quarter.  The net 
cash used in 1999 primarily reflects LabOne's $3.9 million net additions to 
property plant and equipment related to construction and fixtures for the 
new facility.  Net cash used by investing activities in 1998's first 
quarter included a net increase in long-term investments of $3.8 million 
and $1.7 million of net additions to property, plant and equipment.  
LabOne's capital additions are expected to be approximately $5 million 
annually.

Net cash used by financing activities totaled $1.9 million in both 1999 and 
1998's first quarters primarily consisting of regular cash dividends.

Lab Holdings is currently a holding company.  Sources of cash are 
investments and subsidiary dividends.  The primary uses of cash for Lab 
Holdings are investments, operating expenses and dividends to shareholders.

LabOne paid regular quarterly dividends in 1999 and 1998.  As an 
approximate 80.5% owner, Lab Holdings received $1.9 million of cash 
dividends from LabOne in the first quarter 1999.  LabOne's working capital 
position decreased by $4.8 million to $21.1 million at March 31, 1999 from 
$25.9 million at December 31, 1998.  This decrease is primarily due 
dividends paid and capital additions exceeding cash provided by operations.

LabOne had no short-term borrowings in the first quarter of 1999.  LabOne 
expects to fund operations and future dividend payments from a combination 
of cash flows from operations, cash reserves and short term borrowings. 
Proceeds from the industrial revenue bond have been used to finance the 
construction of the LabOne's new facility project.  Interest on the bond is 
based on a taxable seven day variable rate and is currently approximately 
5.7%.  LabOne expects to repay the bond over 11 years at $1.85 million per 
year plus interest.   

YEAR 2000

LabOne is actively addressing Year 2000 computer concerns.  LabOne has 
established an oversight committee which includes management from all parts 
of the Company and meets periodically to review progress.  LabOne's 
laboratory operating systems and its business processing systems were 
completely rewritten in the past ten years and were brought into compliance 
with Year 2000 date standards at that time.  As part of construction of the 
new facility, certified compliant security systems, time clocks and heating 
and cooling systems (non-IT systems) were installed.  LabOne expects to 
complete all remaining internal Year 2000 objectives by the end of the 
second quarter, 1999.

LabOne is assessing the Year 2000 preparation and contingency plans of 
clients and vendors.  LabOne has material relationships and dependencies 
with its primary telecommunications provider, Sprint Corp., its inbound 
shipping provider, Airborne Express, and municipal services providers.  In 
the event of a service interruption, LabOne has the ability to switch 
telecommunications services to AT&T at any time, and maintains backup 
electrical generators capable of meeting its electrical needs.  LabOne 
currently tracks and controls routing of its inbound specimens and can use 
USPS, airlines and other common carriers or express delivery services in 
the event of delivery problems with Airborne Express.  LabOne currently 
maintains approximately 8 weeks supply of most laboratory supplies, and 
does not expect significant problems in obtaining supplies.  LabOne 
continues to review the Year 2000 plans of these providers, and does not 
currently expect significant problems in these areas, however, there can be 
no assurance that the systems of clients and vendors will be converted to 
address Year 2000 problems in a timely and effective manner or that such 
conversions will be compatible with the LabOne's computer systems.

Resources dedicated to the remaining effort are expected to cost less than 
$200,000 and are not considered a material expense to LabOne.  These 
efforts have not caused delay to LabOne's other ongoing information systems 
projects.  LabOne has not hired any outside consultants or other 
independent validation provider at this time, and does not expect to do so.

There can be no assurance that LabOne's adjustments to its computer systems 
will completely eliminate all Year 2000 problems.  Failure to properly 
address the Year 2000 problem could have a material adverse effect on 
LabOne's business, financial condition and results of operations.

Lab Holdings has completed its Year 2000 internal compliance program and 
believes that its limited computer systems are now Year 2000 compliant.

RECENTLY ISSUED ACCOUNTING STANDARDS

No recently issued accounting standards presently exist which will require 
adoption in future periods.


ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

A foreign currency risk exposure exists due to billing Canadian subsidiary 
revenue in Canadian dollars and the direct laboratory expenses associated 
with this revenue being incurred in US dollars.  This exposure is not 
considered to be material.  Any future material Canadian currency 
fluctuations against the US dollar could result in a decision to hedge 
future foreign currency cash flows, or to increase Canadian prices.

An interest rate risk exposure exists due to LabOne's liability of $20 
million in industrial revenue bonds.  The interest expense incurred on 
these bonds is based on a taxable seven day variable rate, which including 
letter of credit and remarketing fees, is approximately 5.7% as of May 1, 
1999.  This exposure is not considered material.  Any future increase in 
interest rates would result in additional interest expense and could result 
in a decision to enter into a long-term interest rate swap transaction.




PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings
         None.

Item 2.  Changes in Securities
         (a)  Changes in Securities:  None

         (b)  Under the Missouri General Corporation Law, no dividends to 
stockholders may be declared or paid at a time when the net assets of the 
corporation are less than its stated capital or when the payment thereof 
would reduce the net assets of the corporation below its stated capital.  
At March 31, 1999, the net assets of Lab Holdings, Inc. exceeded its stated 
capital by $46,699,000.

Item 3.  Defaults Upon Senior Securities
         None.

Item 4.  Submission of Matters to a Vote of Securities Holders
         None.

Item 5.  Other Information
         None.

Item 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits:
              2  Form of Agreement and Plan of Merger by and between Lab 
Holdings, Inc. and LabOne, Inc., as amended and restated, dated as of March 
7, 1999 (incorporated by reference to Exhibit 2.3 to the Registrant's 
Registration Statement on Form S-4 filed April 13, 1999, file No. 333-
76131).

             27  Financial Data Schedule - as filed electronically by the 
Registrant in conjunction with this Form 10-Q.

         (b)  Reports on Form 8-K:
              A current report on Form 8-K was filed on March 8, 1999 to 
report that the Boards of Directors of Lab Holdings' and its 80.5% owned 
subsidiary, LabOne, Inc., had approved an agreement to merge the two 
companies.



                                  SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                     Lab Holdings, Inc.

Date May 13, 1999                   By  /s/  Steven K. Fitzwater
                                        ----------------------------    
                                        Steven K. Fitzwater
                                        Executive Vice President, Chief
                                        Operating and Financial Officer


Date May 13, 1999                   By  /s/  Linda K. McCoy
                                        ----------------------------
                                        Linda K. McCoy
                                        Vice President and
                                        Chief Accounting Officer