Quest Diagnostics 2011 Annual Report Download - page 10

States. Clinical laboratory testing generally is performed on whole blood, serum, plasma and other body fluids,
such as urine, and specimens such as microbiology samples. Clinical laboratory tests which can be performed by
most clinical laboratories are considered routine. Esoteric tests are clinical laboratory tests typically that are not
routine, require professional “hands-on” attention from highly-skilled technical personnel, generally require more
sophisticated technology, equipment or materials and may be performed less frequently than routine tests.
Consequently, esoteric tests generally are reimbursed at higher levels than routine tests. It is not practical, from a
cost-effectiveness or infrastructure perspective, for most hospitals, commercial laboratories or physician office
laboratories to develop and perform a broad menu of esoteric tests, or to perform low-volume esoteric testing in-
house. Such tests generally are outsourced to an esoteric clinical testing laboratory, which specializes in
performing these complex tests. Anatomic pathology services are performed on tissues, such as biopsies, and
other samples, such as human cells. As tests increasingly become more complex, we believe that providing sound
medical and scientific consultation regarding our tests and test results will help spur the integration of new tests
into clinical practice, and help physicians best utilize these tests to improve patient outcomes and enhance patient
satisfaction. To this end, our in-house experts, including medical directors, scientific directors, genetic counselors
and board certified geneticists, are available for consultation with our customers regarding testing that we
perform.
Routine clinical testing. We are the leading provider of routine clinical testing, including testing for drugs of
abuse. We perform routine testing through our network of major laboratories and rapid response laboratories.
Rapid response laboratories are smaller facilities where we can quickly perform an abbreviated menu of routine
tests for customers that require rapid turnaround times. We also perform routine testing at hospital laboratories
that we manage. We operate laboratories 24 hours a day, 365 days a year. The majority of test results are
delivered electronically.
Routine tests measure various important bodily health parameters such as the functions of the kidney, heart,
liver, thyroid and other organs. Commonly ordered tests include:
•blood chemistries, including cholesterol levels;
•complete blood cell counts;
•urinalysis;
•pregnancy and other prenatal tests;
•routine microbiology testing;
•alcohol and other substance-abuse tests; and
•allergy tests such as the ImmunoCap威test.
Anatomic pathology testing. We are the leading provider of anatomic pathology services in the United States,
through our AmeriPath威, Dermpath Diagnostics威and Quest Diagnostics brands. Anatomic pathology involves the
diagnosis of cancer and other diseases and medical conditions through examination of tissue and cell samples
taken from patients. We provide inpatient anatomic pathology and medical director services at hospitals
throughout the country, and through our major laboratories.
We provide a full range of services to all anatomic pathology subspecialties. Our experienced staff of
hundreds of medical doctors, including luminaries in their field, have a passion for providing the highest quality
service to patients. We provide integrated, comprehensive reports that include both anatomic pathology and
clinical pathology tests, enabling our pathologists to offer patients and physicians a complete analysis. Our
approach fosters personalized patient care.
We have a strong history of leadership and innovation in cancer diagnostics. We introduced the Leumeta威
family of tests for leukemia and lymphoma. These proprietary plasma-based molecular tests may some day
eliminate the need for painful bone marrow biopsies. As discussed below under the heading “Scientific
Innovation,” we continue to develop and release new tests to aid in the detection and treatment of cancer.
Gene-Based and Esoteric Testing. We are the leading provider in the United States of gene-based and
esoteric testing. Gene-based and esoteric tests increasingly are ordered by physicians to assist them in the
diagnostic process, to establish a prognosis and to choose or monitor a therapeutic regimen. Esoteric tests include
procedures in the areas of molecular diagnostics, protein chemistry, cellular immunology and advanced
microbiology. Commonly ordered esoteric tests include viral and bacterial detection tests, drug therapy monitoring
tests, genetic tests, autoimmune panels and complex cancer evaluations. In 2011, we acquired Athena
Diagnostics威, a provider of neurology testing, establishing the leading position in the growing neurology testing
market. In 2011, we also acquired Celera威Corporation, providing immediate access to increased genetic tests. As
part of this acquisition, we also acquired Berkeley HeartLab, enhancing our leading position in advanced
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