Quest Diagnostics 2006 Annual Report Download - page 24

investing in sales and marketing, providing the sales force with better tools and training and adding innovative
new products to sell. We are specifically focused on driving profitable organic growth in higher-growth areas by
being a leading innovator. Our principal areas of focus include:
•Physician Sub Specialties: While we provide a strong value proposition in routine and esoteric clinical
testing, we have not been the provider of choice for the testing needs of certain physician specialists.
During 2006, we enhanced our test menu and service capabilities to more effectively compete in several
physician sub specialties, including urology, gastroenterology, hematology and oncology, where we have
had a smaller market share. We plan to continue to enhance our test menu and service capabilities in
these areas as well as in dermatology. We have also been enhancing our esoteric anatomic pathology
capabilities and service offerings and have added specially trained sales representatives to service
pathologists in hospitals as well as hematology/oncology offices.
•Innovation Leadership: We intend to build upon our reputation as a leading innovator in the clinical
laboratory industry by continuing to introduce new tests, technology and services. As the industry leader
with the largest and broadest network and the leading provider of esoteric testing, we believe that we are
the best partner for developers of new technologies and tests to introduce their products to the
marketplace. Through our relationships with the academic community, pharmaceutical and biotechnology
firms and emerging medical technology companies that develop and commercialize novel diagnostics,
pharmaceutical and device technologies, we believe that we are one of the leaders in transferring technical
innovation to the market. Our innovation activities are focused on:
- Gene-Based and Other Esoteric Testing Capabilities: We intend to remain a leading innovator in the
diagnostic testing industry by continuing to introduce new tests, technologies and services. We believe
that gene-based and other esoteric tests are the fastest growing area within the diagnostic testing
industry. We believe that we have the largest gene-based and esoteric testing business in the United
States, with over $1 billion in net revenues during 2006, and that this business is growing approximately
10% per year. We believe that the unveiling of the human genome and the linkages of genes and the
proteins they produce with disease will result in more complex and thorough predictive and diagnostic
testing. We believe that we are well positioned to benefit from this growth. We intend to focus on
commercializing diagnostic applications of discoveries in the areas of functional genomics and
proteomics.
- Information Technology: We continue to invest in the development and improvement of information
technology products for customers and healthcare providers. We develop differentiated products that
provide more convenient ordering and reporting of laboratory tests and better access to patient-centric
information. We believe that these products enhance the value we provide to our customers and result in
increased customer loyalty. Our Care360TM products, including our Care360 Physician Portal, enable
doctors to order diagnostic tests and review laboratory results from Quest Diagnostics online. In
addition, the Care360 Physician Portal enables doctors to electronically prescribe medication, view
clinical and administrative information from various sources, file certain documents into a patient-centric
health record maintained in our repository and share confidential information with medical colleagues in
a manner consistent with the Health Insurance Portability and Accountability Act of 1996, or HIPAA.
The Care360 Physician Portal and related Care360 products allow us to replace older technology
products used by some physicians and thereby offer a better solution. Demand has been growing for our
information technology solutions as physicians have expanded their usage of the Internet. By the end of
2006, over 100,000 physicians were using our Care360TM products and approximately 50% of our orders
and over 90% of our test results were being transmitted via the Internet. The Care360 Physician Portal
was developed by MedPlus, our wholly owned healthcare information technology subsidiary. MedPlus’
ChartMaxx威patient record systems and Care360 connectivity system are designed to support the
creation and management of electronic patient records, by bringing together, in one patient-centric view,
information from various sources, including physician’s records and laboratory and hospital data. We
intend to expand the services offered through our portal over time through both internal development
and the formation of strategic relationships.
•Near Patient Testing (also known as Point of Care Testing): Technology changes are enabling testing to
move closer to the patient, and are becoming increasingly available and reliable. We are well positioned
to offer choice and integrated solutions to physicians, hospitals, clinics and retail customers for the testing
methods that are most appropriate for each patient and practice. We intend to acquire and develop novel
technology platforms and systems to meet the needs of our clients. We also intend to provide electronic
data links through our Care360 desktop system so that tests performed outside our central laboratories,
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