Quest Diagnostics 2008 Annual Report Download - page 13

Item 1. Business
Quest Diagnostics Incorporated is the world’s leading provider of diagnostic testing, information and
services. We provide insights that enable patients, physicians and others to make decisions to improve health.
Quest Diagnostics was incorporated in Delaware in 1990; its predecessor companies date back to 1967. We
conduct business through our headquarters in Madison, New Jersey, and our laboratories, patient service centers,
offices and other facilities around the United States and in selected locations outside the United States. Unless the
context otherwise requires, the terms “Quest Diagnostics,” the “Company,” “we” and “our” mean Quest
Diagnostics Incorporated and its consolidated subsidiaries.
During 2008, we generated net revenues of $7.2 billion and processed approximately 150 million test
requisitions. Additional financial information concerning Quest Diagnostics, including our consolidated
subsidiaries, for each of the years ended December 31, 2008, December 31, 2007 and December 31, 2006 is
included in the consolidated financial statements and notes thereto in “Financial Statements and Supplementary
Data” in Part II, Item 8.
OUR STRATEGY AND STRENGTHS
Our mission is to be the undisputed world leader in diagnostic testing, information and services. Our vision
is that we are dedicated people improving the health of patients through unsurpassed diagnostic insights and
innovation. We focus on patients, growth and people to help achieve our goals.
We offer high value diagnostic testing services and products attractive to patients, physicians, payers, and
others and have become the provider of choice in key areas of the diagnostic testing market. We believe that
successful execution of our strategy will drive continued growth of our business. Additionally, we believe that,
over the long term, we will be able to grow at a rate above the U.S. clinical laboratory industry growth rate, to
expand margins and to increase international revenues to 10% of consolidated revenues. We plan to do this by
gaining more customers, selling more services and products to existing customers and by continuously improving
the efficiency of our operations. The elements of our growth strategy are described below.
•Deliver a superior patient experience. The patient is at the center of everything we do. Increasingly,
patients have a choice when it comes to selecting a healthcare provider and we strive to give patients
compelling reasons to put their trust in us. We have made significant investments in training our
employees to provide a superior patient experience. We believe that this will drive patient and physician
loyalty. Additionally, we have deployed automated patient appointment scheduling for our patient service
centers. This enables patients to schedule appointments at times that are convenient for them while
essentially eliminating their waiting time. We believe that we are the only national clinical test provider
that offers this service in almost all of its patient service centers. We also collaborated with Google to
launch Google Health, which allows patients to share, save, organize and manage online their medical
records and personal health information, including diagnostics laboratory data.
•Continuously drive Six Sigma quality. We strive to provide the highest quality in all that we do, including:
phlebotomy and specimen transport services; analytical testing processes in our laboratories; accurate and
timely lab reports; and accurate and timely billing. We use Six Sigma and Lean processes to continuously
reduce defects, enhance quality and further increase the efficiency of our operations. Six Sigma is a
management approach that utilizes a thorough understanding of customer needs and requirements, root
cause analysis, process improvements and rigorous tracking and measuring to enhance quality. Lean is a
management approach that seeks to streamline processes and eliminate waste. We also use Six Sigma and
Lean principles to help standardize operations and processes across our Company and identify and adopt
company best practices. We believe our focus on continuously driving Six Sigma quality in all aspects of
our business results in superior service to our customers and drives customer loyalty.
•Leverage our unparalleled assets and capabilities. We are the world leader in the clinical testing business
and the leading cancer diagnostic testing provider. We have the most extensive clinical testing network in
the United States, offering national access to testing services. We operate a nationwide network of over
2,000 of our own patient service centers where we collect patient specimens, and laboratories in most
major metropolitan areas. We provide anatomic pathology services, including inpatient anatomic pathology
and medical director services at hospitals, throughout the country. We have a leading medical and
scientific staff of approximately 900 M.D.s and Ph.D.s, primarily located in the United States. We serve
approximately half of the physicians and half of the hospitals in the United States. We also operate
approximately 75 locations in the United States and Canada where we coordinate the provision of
paramedical examinations related to life insurance applications. We offer the broadest test menu, with