Quest Diagnostics 2001 Annual Report Download - page 5

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Improving The Health Of Patients
The underlying fundamentals of our industry are strong. The
population is aging and growing, yielding steady increases
in demand for diagnostic testing. New technologies, from
genomics to the Internet, enable the creation of new
services that healthcare professionals can use to improve
patient care. At a time of rising healthcare costs, diagnostic
testing offers a tremendous “value”—impacting more
than 70% of healthcare decisions while representing only
about 4% of U.S. healthcare spending.
On the pages that follow, we illustrate our impact on the
health of patients by depicting the way patients and doctors
interact with Quest Diagnostics. We improve health by
providing diagnostic insights—information to identify, treat
and monitor disease. We improve health with convenient,
time-sensitive, quality service—making it easier for patients
to get tested and for physicians to receive results. And
we improve health with innovative new diagnostic and
predictive tests—bringing to market the benefits of new
technology and meaningful insights.
Profitable Growth
We are differentiating ourselves with our customers through
our pursuit of Six Sigma Quality, which is beginning to change
the way we operate as a company. Six Sigma is a way of
managing that focuses intensely on the customer. It
provides rigorous tools and processes to ensure consistent
delivery of service in all aspects. Early on, I made a
commitment to get deeply involved with Six Sigma to help
ensure its success in our company. During the past year I
completed four weeks of training to become a “Black Belt,”
one of 130 individuals qualified to direct Six Sigma projects
at Quest Diagnostics. In 2002 all of our senior management
team will be trained as “Green Belts” in Six Sigma.
Our efforts are still in the early stages, but Six Sigma
is already beginning to yield competitive advantage.
The pace of new test introductions is accelerating,
particularly in the fast-growing area of gene-based testing.
To build upon our leadership in this area, we develop
new diagnostic tests at Nichols Institute, transfer new
technologies developed by external sources, and create
strategic partnerships with leading innovators. Gene-based
testing is the fastest growing part of diagnostic testing and
we are proud to lead the way.
Achieving Our Goals
Our values and vision remain the strong foundation of
Quest Diagnostics. Our strategic intentions are clear –
undisputed leadership in diagnostic testing, driving valuable
healthcare insights, and ultimately becoming the “gold
standard” for excellence in healthcare. Our financial
goals are also quite clear—providing outstanding returns
for our shareholders—by growing revenues 10% each
year, driving EBITDA margins to 20% and beyond, and
sustaining our 30% growth rate in earnings per share for
the next several years. We have the vision, the strategy,
the talented people and the financial strength to grow
and prosper for years to come.
Thank you for your continuing support as we endeavor
to improve the health of patients—and enhance
shareholder value.
Kenneth W. Freeman
Chairman and Chief Executive Officer
Kenneth W. Freeman
Chairman and Chief Executive Officer