Quest Diagnostics 2011 Annual Report Download - page 14

applicant’s home or workplace. We also offer paramedical examinations through approximately 500 of our patient
service centers, and operate approximately 80 locations other than patient service centers in the United States and
Canada where we provide paramedical examinations, bringing to approximately 580 the total number of sites
where we can provide these examinations. We also contract with third parties at over an additional 200 locations
globally to coordinate providing these exams.
We seek to grow our risk assessment services revenues by increasing our market share and by offering new
and innovative laboratory tests, data collection and analytics and other services. For example, in 2011, we were
the first in the industry to offer on-line lab results to life insurance applicants. We charge our life insurance
customers on a fee-for-service basis, typically under multi-year agreements.
Employer Services. We believe that we are a leading provider of 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.
We provide a full range of solutions for drugs of abuse, including urine, hair, blood and oral fluid tests. We
regularly look for opportunities to enhance our test offerings. In 2011, we introduced Oral-Eze威, our own
innovative oral fluid collection system that simplifies the collection of oral samples for routine drug testing. The
Oral-Eze威Oral Fluid Collector provides all the advantages of previous collection systems, with the added benefit
of our indicator window technology.
As healthcare costs have increased, so has the value of preventive care. Employers grappling with rising
healthcare costs increasingly use wellness screening 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 examiner network to deliver wellness screening nationwide. We also are exploring offering Blueprint
for Wellness威through additional channels.
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, HemoCue and Celera, that enhance our offerings and better enable us to
serve these markets.
Focus Diagnostics威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 Diagnostics 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 Simplexa威brand name. In 2011,
Focus Diagnostics received the CE mark to offer several new Simplexa tests in Europe, including tests for
Cytomegalovirus, Epstein Barr virus, BK virus and clostridium difficile. Focus Diagnostics now offers one of the
most comprehensive molecular transplant-testing menus in Europe. Focus Diagnostics also registered the Simplexa
Dengue molecular test with the National Agency of Sanitary Vigilance, an office of Brazil’s federal government,
for use in public and private health testing in Brazil. In 2011, Focus Diagnostics received FDA 510(k) clearance
for its Simplexa test offering for Flu A/B/RSV. In 2011, the Simplexa/3M technology won a gold Medical
Design Excellence Award in the IVD category and an Edison award for new science and medical diagnostics
product. We intend to develop and pursue FDA clearance and CE marking for additional SimplexaTM tests.
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