Quest Diagnostics 2009 Annual Report Download - page 11

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 better healthcare decisions.
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 2009, we generated net revenues of $7.5 billion and processed approximately 148 million test
requisitions. Additional financial information concerning Quest Diagnostics, including our consolidated
subsidiaries, for each of the years ended December 31, 2009, December 31, 2008 and December 31, 2007 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. We are
dedicated to improving the health of patients through unsurpassed diagnostic insights and innovation and 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. Our automated patient appointment scheduling 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 offer TestMinder, which sends email reminders to patients that require frequent testing. We
collaborate with Keas, Microsoft and Google in connection with their personal health records offerings.
Keasprovides an online tool that delivers personalized health plans to individuals, based upon the
individual’s health information. MicrosoftHealthVaultand Google Healthare tools that allow
patients to store, manage, and share their medical records online. These are examples of how electronic
connectivity is becoming increasingly important in impacting the overall patient experience.
•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 using Six Sigma and Lean 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 United States. We have a medical and scientific
staff of approximately 900 M.D.s and Ph.D.s, primarily located in the United States, many of whom are
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