Quest Diagnostics 1997 Annual Report Download - page 9

Answers
for Better
Patient Care
The American health care landscape is changing in fundamental ways, creating enormous
challenges for any organization involved in patient care. In this difficult environment, we are
aggressively pursuing our three-pronged business strategy: to become the highest quality,
lowest cost provider of diagnostic testing, information and services; to become the preferred
partner with large buyers; and to become the leading innovator for diagnostic testing,
information and services.
While the wrenching changes of the past few years have brought pain to our industry, we see
tremendous opportunity ahead. That opportunity lies in continuing to improve the efficiency
of the health care services we provide; in teaming with large buyers who need our expertise;
and in extending the frontiers of innovation to offer vital new testing services. We feel
strongly that our employees are uniquely qualified to exploit the opportunities facing us and
win in the marketplace.
Our Business
In general, doctors order laboratory tests for three main reasons: to screen healthy patients for
unexpected problems; to help diagnose a sick patient; or to monitor therapy in a patient being
treated for disease. In each case, the doctorÕs own five senses need to be extended to find
answers that become the basis for critical health care decisions. The results of the tests we
perform on patientsÕ blood, other bodily fluids and tissues provide the doctor with a stunning
array of answers that have enormous value not only for doctors and large health care
organizations, but also, of course, for patients themselves.
The business of producing these answers is quite complex and labor-intensive. Our network
of professional couriers retrieve tens of millions of specimens each year from doctorsÕ offices,
clinics, hospitals, and 800 Patient Service Centers, and speed them to one of our regional
laboratories, branch labs or quick-turnaround STAT labs across the country. Most testing is
performed overnight with results transmitted to doctors the next morning. After we perform
the tests, we begin the laborious and highly regulated process of sending out the proper bills
to ensure that we are reimbursed for our work. Our payors include patients, doctors, indemnity
insurance companies, managed care companies, hospitals, clinics, employers and government
payors such as Medicaid and Medicare.
Occasionally, some clinical situations require additional information beyond that provided by
our regional and branch laboratories. In these situations, the specimens are sent to Nichols
Institute in San Juan Capistrano, California, where we perform highly specialized esoteric
testing. By concentrating on tests that require special knowledge and equipment, the
scientists and medical directors at Nichols Institute are able to attract esoteric specimens from
not just our own labs, but those of hospitals, physicians and even our competitors. Having this
constant stream of specimens requiring sophisticated analysis, as well as a broad network of
top medical specialists for clients to consult Ñfrom our labs and throughout academiaÑ gives
us a unique perspective from which to offer diagnostic insights.
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