Quest Diagnostics 2010 Annual Report Download - page 11

will continue. We charge our life insurance customers on a fee-for-service basis, typically under multi-year
agreements.
Employer Services. We believe that we are the leading provider of clinical testing to employers for the
detection of employee use of drugs-of-abuse. Our Quest Diagnostics Drug Testing IndexTM, which is an annual
report of our aggregate drug testing results, is used by employers, the federal government and the media to help
identify and quantify drug abuse among the nation’s workforce.
As healthcare costs have increased, so has the value of preventative care. Employers grappling with
increased healthcare costs use wellness testing as a key tool to reduce their healthcare costs and the healthcare
risks of their employees. We provide wellness testing and analytic services to employers to enable them and their
employees to take an active role in improving their health and empower employers with aggregated health
information. Our Blueprint for Wellness威program offers employers actionable data to power their health
improvement and cost containment programs. We are leveraging our patient service centers and paramedical
network to deliver wellness screening nationwide. We also offer Blueprint for Wellness威directly to individuals.
Diagnostic Products, Including Point-of-care, or Near Patient, Testing. Technology advances are enabling
testing to move closer to the patient and are becoming increasingly available, accurate and cost effective. Over
time, some testing that is now done in clinical laboratories will cease to be performed in clinical laboratories and
will be performed closer to the patient. We believe that our point-of-care testing strategy will strengthen our
relationship with our customers by enabling us to offer more solutions that improve the effectiveness of our
customers and the care of their patients by enabling faster diagnosis and treatment. We are well positioned to
offer options and integrated solutions to physicians, hospitals and clinics for the testing methods that are most
appropriate for each patient and practice.
We develop and manufacture products that enable healthcare professionals to make healthcare diagnoses,
including products for point-of-care, or near patient, testing for the professional market. We have several
companies, including Focus Diagnostics, Enterix, and HemoCue, that enhance our offerings and better enable us
to serve these markets. We will consider additional acquisitions or licenses of selective products to complement
the products and services we provide. The results of several of our point-of-care tests can be entered into our
Care360TM system and hospital laboratory information systems so that they are available in electronic medical
records. We intend to offer additional data links in the future. This will differentiate our point-of-care test
products from other products that are not integrated into an electronic repository.
Focus Diagnostics is a leading provider of infectious disease testing that has established a reputation for
being first to introduce new tests to the market, including diagnostic tests for Lyme disease, West Nile Virus,
SARS and, most recently, H1N1. Focus Diagnostics develops, manufactures and markets diagnostic products, such
as HerpeSelect威ELISA tests that detect patient antibodies to specific types of herpes simplex virus, which can be
performed on a variety of instrument platforms. Focus Diagnostics sells its diagnostic products to large academic
medical centers, hospitals and commercial laboratories globally. Focus has an agreement with 3M Corporation for
global human diagnostic rights to a compact integrated bench-top instrument for use with real time polymerase
chain reaction (“PCR”) assays. These tests are sold under the SimplexaTM brand name. In 2010, Focus received
FDA 510(k) clearance for the bench-top instrument, the SimplexaTM H1N1 Influenza test and the SimplexaTM Flu
A/B and RSV test for the instrument. Each test also has received the CE mark for sale in Europe. We intend to
develop and pursue FDA clearance and CE marking for additional SimplexaTM tests.
HemoCue manufactures and distributes point-of-care testing products. HemoCue is the leading global
provider in point-of-care testing for hemoglobin, with a growing market share for glucose, microalbumin and
white blood cell testing. In 2010, HemoCue added a room temperature version of its high sensitivity glucose test
in the EU; HemoCue is seeking FDA 510(k) clearance for this test in the U.S. HemoCue also began to market
and deliver its White Blood Cell Analyzer, a whole-blood test performed on finger-stick samples, in both single
(worldwide) and differential (in Europe) counts. We are seeking 510(k) clearance and waived status under the
Clinical Laboratory Improvement Amendments (“CLIA”) for this product which, if granted, would permit
physicians to use these products in a much larger segment of physician offices. The HemoCue handheld systems
are used in physician’s offices, blood banks, hospitals, diabetes clinics and public health clinics. Approximately
one-half of HemoCue products are sold outside the United States. We believe that HemoCue has a strong product
development pipeline, based on its pioneering use of its patented microfluidic systems.
Enterix, an Australia-based company, manufactures the InSure威fecal immunochemical test (FITTM) for
screening for colorectal cancer.
International. We have laboratory facilities in Gurgaon, India; Heston, England; Mexico City, Mexico; and
San Juan, Puerto Rico. These laboratories support clinical testing in their local markets, and also may support our
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