Quest Diagnostics 2002 Annual Report Download - page 6

4QUEST DIAGNOSTICS
A conversation with Surya N. Mohapatra, Ph.D.,
President and Chief Operating Officer
Q: How would you describe your business?
A: What makes us really special is that we are a healthcare provider in an industry that drives more than
70% of healthcare decisions. We operate sophisticated laboratories that perform thousands of distinct
tests on human specimens. Physicians rely on us for test results that help them make decisions to improve
their patients’ health. The majority of our work begins and ends in the physician’s office or hospital, but
much effort happens behind the scenes. Quest Diagnostics is, above all, a powerhouse of access and
distribution. In some ways we’re like a national restaurant company because we have more than 1,700
conveniently located “retail” patient service centers across the U.S. and in Mexico and the United
Kingdom, where specimens are collected. We’re also like an express package deliv e r y comp any – with more
than 3,000 couriers reliably transporting specimens between doctors’ offices, hospitals, patient service
centers and laboratories. We’re also like a bank because we generate millions of transactions each day that
demand 100% accuracy and rapid turnaround time. We are like these companies in some ways, but are
different in that the vital service we provide is healthcare. We have a tremendous responsibility to patients
and their physicians. This provides the fuel to strive for perfection in all that we do.
Q: How will you accelerate profitable growth?
A : We plan to grow faster than the overall market from our position of industry leadership. Our growth
strategy focuses on several areas that differentiate us: Six Sigma quality; unparalleled access; innov a t iv e
new tests and testing techniques; state-of-the-art electronic connectivity options; and selective strategic
alliances and acquisitions.
Q:What benefits do you see from Six Sigma quality?
A: Six Sigma is changing our company ’s culture and impacting all aspects of our business, from drawing
specimens, to testing, to reporting results, to billing and collecting. We are improving quality and enhancing
customer satisfaction and loyalty. During 2002, our customer satisfaction survey results improved steadily
across the company and ended the year at the highest level ever. In addition, Six Sigma is reducing our
costs, driving improved profitability.
Q: How do you develop new tests?
A: We develop new tests internally at our Nichols Institute and with help from others. We fund internal
development efforts that produce new tests each year. A recent example is the CF CompleteTM test, the
most comprehensive genetic test available to sequence cystic fibrosis gene mutations. In addition, during
2002 we obtained rights to offer new blood tests for cardiovascular disease, diabetes and ovarian cancer
through a number of strategic relationships.
Q:Where are you focusing your investments in information technology?
A: We invest in electronic solutions, such as eMaxx, that make it easier for our customers to order tests
and securely access confidential patient test results. Compared to paper forms, electronic test orders
reduce data entry err o rs, improve quality and drive costs and complexity out of our business. We recently
opened a state-of-the-art national data center to further enhance the security of our computer systems and
help ensure patient privacy.