Quest Diagnostics 2010 Annual Report Download - page 32

the use of words such as “may”, “believe”, “will”, “expect”, “project”, “estimate”, “anticipate”, “plan” or
“continue.” These forward-looking statements are based on our current plans and expectations and are subject to
a number of risks and uncertainties that could cause our plans and expectations, including actual results, to differ
materially from the forward-looking statements. Investors are cautioned not to unduly rely on such forward-
looking statements when evaluating the information presented in this document. The following important factors
could cause our actual financial results to differ materially from those projected, forecasted or estimated by us in
forward-looking statements:
(a) Heightened competition from commercial clinical testing companies, and from hospitals with respect to
testing for non-patients and from physicians.
(b) Increased pricing pressure from customers and payers.
(c) A continued weakness in economic conditions.
(d) Impact of changes in payer mix, including any shift from fee-for-service to discounted or capitated fee
arrangements.
(e) Adverse actions by government or other third-party payers, including healthcare reform that focuses on
reducing healthcare costs but does not recognize the value and importance to healthcare of diagnostic
testing, unilateral reduction of fee schedules payable to us, competitive bidding, and an increase in the
practice of negotiating for exclusive arrangements that involve aggressively priced capitated or fee-for-
service payments by health insurers or other payers.
(f) The impact upon our testing volume and collected revenue or general or administrative expenses
resulting from our compliance with Medicare and Medicaid administrative policies and requirements of
third party payers. These include:
(1) the requirements of Medicare carriers to provide diagnosis codes for many commonly ordered tests
(and the transition to a new coding set) and the possibility that third party payers will increasingly
adopt similar requirements;
(2) continued inconsistent practices among the different local carriers administering Medicare;
(3) inability to obtain from patients a valid advance beneficiary notice form for tests that cannot be
billed without prior receipt of the form;
(4) increased challenges in operating as a non-contracted provider with respect to health plans;
(5) the impact of additional or expanded limited coverage policies and limits on the allowable number
of test units;
(6) the impact of increased prior authorization programs for clinical testing; and
(7) new rules regarding laboratory requisitions.
(g) Adverse results from pending or future government investigations, lawsuits or private actions. These
include, in particular, monetary damages, loss or suspension of licenses, and/or suspension or exclusion
from the Medicare and Medicaid programs and/or criminal penalties.
(h) Failure to efficiently integrate acquired businesses and to manage the costs related to any such
integration, or to retain key technical, professional or management personnel.
(i) Denial, suspension or revocation of CLIA certification or other licenses for any of our clinical
laboratories under the CLIA standards, revocation or suspension of the right to bill the Medicare and
Medicaid programs or other adverse regulatory actions by federal, state and local agencies.
(j) Changes in federal, state or local laws or regulations, including changes that result in new or increased
federal or state regulation of commercial clinical laboratories or tests developed by commercial clinical
laboratories, including regulation of laboratory services by the FDA.
(k) Inability to achieve expected benefits from our acquisitions of other businesses.
(l) Inability to achieve additional benefits from our Six Sigma and efficiency initiatives.
(m) Adverse publicity and news coverage about the clinical testing industry or us.
(n) Computer or other IT system failures that affect our ability to perform tests, report test results or
properly bill customers, including potential failures resulting from the standardization of our IT systems
and other system conversions, telecommunications failures, malicious human acts (such as electronic
break-ins or computer viruses) or natural disasters.
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