Quest Diagnostics 2014 Annual Report Download - page 17
Download and view the complete annual report
Please find page 17 of the 2014 Quest Diagnostics annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.
Informatics7KHLQFUHDVHGDYDLODELOLW\RIKHDOWKFDUHGDWDLQFOXGLQJGDWDPDGHDYDLODEOHDVDUHVXOWRIQH[WJHQHUDWLRQ
'1$VHTXHQFLQJDQGWKHLQFUHDVHGDELOLW\WRHIIHFWLYHO\DQDO\]HWKDWGDWDDWSRSXODWLRQDQGSDWLHQWOHYHOVLVLPSDFWLQJ
KHDOWKFDUHSUDFWLFHV,QIRUPDWLFVLQFOXGLQJLQWHJUDWHGGLDJQRVWLFDQGGHFLVLRQVXSSRUWVROXWLRQVXVHRISRSXODWLRQGDWDDQG
KHDOWKFDUHLQIRUPDWLRQWHFKQRORJ\LVVSXUULQJDGYDQFHVLQSUHFLVLRQPHGLFLQHLQFOXGLQJPHGLFDOGHFLVLRQPDNLQJDQGYDOXH
IRUSRSXODWLRQVDQGLQGLYLGXDOV+HDOWKFDUHPDUNHWSDUWLFLSDQWVLQFOXGLQJSKDUPDFHXWLFDOFRPSDQLHVKHDOWKSODQVSK\VLFLDQV
$&2VDQGKRVSLWDOVDUHVWULYLQJWROHYHUDJHLQWHURSHUDELOLW\LQIRUPDWLFVDQGDQDO\WLFVWRSRVLWLYHO\LQIOXHQFHWKHKHDOWKRI
SDWLHQWSRSXODWLRQV
Customers.:HSURYLGHGLDJQRVWLFLQIRUPDWLRQVHUYLFHVWRDEURDGUDQJHRIFXVWRPHUVLQFOXGLQJSK\VLFLDQV
KRVSLWDOV,'1V$&2VKHDOWKSODQVSDWLHQWVDQGHPSOR\HUV,QPDQ\FDVHVWKHFXVWRPHUWKDWRUGHUVWKHVHUYLFHVLVQRW
UHVSRQVLEOHWRSD\IRUWKHP'HSHQGLQJRQWKHELOOLQJDUUDQJHPHQWDQGDSSOLFDEOHODZWKHSD\HUPD\EHWKHSDWLHQWRUDWKLUG
SDUW\LQVRPHFDVHVHYHQLIDWKLUGSDUW\LVSULPDULO\UHVSRQVLEOHIRUSD\PHQWSDWLHQWVPD\EHDUUHVSRQVLELOLW\IRUDSRUWLRQRI
WKHSD\PHQW([DPSOHVRISRWHQWLDOWKLUGSDUW\SD\HUVLQFOXGHKHDOWKSODQVVHOILQVXUHGHPSOR\HUEHQHILWIXQGV$&2V,'1V
SDWLHQWFHQWHUHGPHGLFDOKRPHVWKHWUDGLWLRQDO0HGLFDUHRU0HGLFDLGSURJUDPSK\VLFLDQVRURWKHUVHJDKRVSLWDODQRWKHU
ODERUDWRU\RUDQHPSOR\HU,QOLJKWRIKHDOWKFDUHUHIRUPWKHUHLVLQFUHDVHGPDUNHWDFWLYLW\UHJDUGLQJDOWHUQDWLYHSD\PHQW
PRGHOVLQFOXGLQJEXQGOHGSD\PHQWPRGHOV,QFUHDVLQJO\SDWLHQWVDUHEHDULQJUHVSRQVLELOLW\IRUVRPHSRUWLRQRIWKHSD\PHQW
IRUWKHVHUYLFHVZHSURYLGHWRWKHP
Health plans.+HDOWKSODQVLQFOXGLQJPDQDJHGFDUHRUJDQL]DWLRQVDQGRWKHUKHDOWKLQVXUDQFHSURYLGHUVW\SLFDOO\
UHLPEXUVHXVDVDFRQWUDFWHGSURYLGHURQEHKDOIRIWKHLUPHPEHUVIRUGLDJQRVWLFLQIRUPDWLRQVHUYLFHVSHUIRUPHG
5HLPEXUVHPHQWIURPRXUILYHODUJHVWKHDOWKSODQVWRWDOHGOHVVWKDQDQGQRRQHKHDOWKSODQDFFRXQWHGIRURIRXU
FRQVROLGDWHGQHWUHYHQXHVLQ
+HDOWKSODQVW\SLFDOO\QHJRWLDWHGLUHFWO\RULQGLUHFWO\ZLWKDQXPEHURIGLDJQRVWLFLQIRUPDWLRQVHUYLFHVSURYLGHUVDQG
UHSUHVHQWDSSUR[LPDWHO\RQHKDOIRIRXUWRWDOFOLQLFDOWHVWLQJYROXPHVDQGRQHKDOIRIRXUQHWUHYHQXHVIURPGLDJQRVWLF
LQIRUPDWLRQVHUYLFHV7KHWUHQGRIFRQVROLGDWLRQDPRQJKHDOWKSODQVKDVFRQWLQXHG,QFHUWDLQORFDWLRQVKHDOWKSODQVPD\
GHOHJDWHWRLQGHSHQGHQWSK\VLFLDQDVVRFLDWLRQV³,3$V´RURWKHUDOWHUQDWLYHGHOLYHU\V\VWHPVHJSK\VLFLDQKRVSLWDO
RUJDQL]DWLRQV$&2VDQGSDWLHQWFHQWHUHGPHGLFDOKRPHVWKHDELOLW\WRQHJRWLDWHIRUGLDJQRVWLFLQIRUPDWLRQVHUYLFHVRQEHKDOI
RIFHUWDLQPHPEHUV
+HDOWKSODQVDQG,3$VRIWHQUHTXLUHWKDWGLDJQRVWLFLQIRUPDWLRQVHUYLFHVSURYLGHUVDFFHSWGLVFRXQWHGIHHVWUXFWXUHVRU
DVVXPHDOORUDSRUWLRQRIWKHILQDQFLDOULVNDVVRFLDWHGZLWKSURYLGLQJVXFKVHUYLFHVWKURXJKFDSLWDWHGSD\PHQWDUUDQJHPHQWV
DQGGLVFRXQWHGIHHIRUVHUYLFHDUUDQJHPHQWV8QGHUFDSLWDWHGSD\PHQWDUUDQJHPHQWVZHSURYLGHVHUYLFHVDWDSUHGHWHUPLQHG
PRQWKO\UHLPEXUVHPHQWUDWHIRUHDFKFRYHUHGPHPEHUJHQHUDOO\UHJDUGOHVVRIWKHQXPEHURUFRVWRIVHUYLFHVSURYLGHGE\XV
+HDOWKSODQVRIIHUSUHIHUUHGSURYLGHURUJDQL]DWLRQ³332´SODQVSRLQWRIVHUYLFH³326´SODQVFRQVXPHUGULYHQKHDOWKSODQV
³&'+3V´KLJKGHGXFWLEOHSODQVDQGRWKHUFRYHUDJHSURJUDPV5HLPEXUVHPHQWXQGHUWKHVHSURJUDPVLVW\SLFDOO\QHJRWLDWHG
RQDIHHIRUVHUYLFHEDVLV
0RVWRIRXUDJUHHPHQWVZLWKPDMRUKHDOWKSODQVDUHQRQH[FOXVLYHDUUDQJHPHQWV&HUWDLQKHDOWKSODQVKDYHOLPLWHG
WKHLUGLDJQRVWLFLQIRUPDWLRQVHUYLFHVQHWZRUNWRRQO\DVLQJOHQDWLRQDOSURYLGHUVHHNLQJWRREWDLQLPSURYHGSULFLQJ+HDOWK
SODQVDOVRDUHQDUURZLQJWKHLUSURYLGHUQHWZRUNV
:HDUHDOVRVRPHWLPHVDPHPEHURID³FRPSOHPHQWDU\QHWZRUN´$FRPSOHPHQWDU\QHWZRUNJHQHUDOO\LVDVHWRI
FRQWUDFWXDODUUDQJHPHQWVWKDWDWKLUGSDUW\ZLOOPDLQWDLQZLWKYDULRXVSURYLGHUVWKDWSURYLGHGLVFRXQWHGIHHVIRUWKHEHQHILWRI
LWVFXVWRPHUV$PHPEHURIDKHDOWKSODQPD\FKRRVHWRDFFHVVDQRQFRQWUDFWHGSURYLGHUWKDWLVDPHPEHURIDFRPSOHPHQWDU\
QHWZRUNLIVRWKHSURYLGHUZLOOEHUHLPEXUVHGDWDUDWHQHJRWLDWHGE\WKHFRPSOHPHQWDU\QHWZRUN
:HDWWHPSWWRVWUHQJWKHQRXUUHODWLRQVKLSVZLWKKHDOWKSODQVDQGLQFUHDVHWKHYROXPHRIRXUVHUYLFHVIRUWKHLUPHPEHUV
E\RIIHULQJWRKHDOWKSODQVVHUYLFHVDQGSURJUDPVWKDWOHYHUDJHRXU&RPSDQ\VH[SHUWLVHDQGUHVRXUFHVLQFOXGLQJRXUVXSHULRU
DFFHVVH[WHQVLYHWHVWPHQXPHGLFDOVWDIIGDWD,7VROXWLRQVDQGZHOOQHVVDQGGLVHDVHPDQDJHPHQWFDSDELOLWLHV
Physicians.3K\VLFLDQVLQFOXGLQJERWKSULPDU\FDUHSK\VLFLDQVDQGVSHFLDOLVWVUHTXLULQJGLDJQRVWLFLQIRUPDWLRQ
VHUYLFHVIRUSDWLHQWVDUHWKHSULPDU\UHIHUUDOVRXUFHRIRXUVHUYLFHV3K\VLFLDQVGHWHUPLQHZKLFKODERUDWRU\WRUHFRPPHQGRU
XVHEDVHGRQDYDULHW\RIIDFWRUVLQFOXGLQJVHUYLFHSDWLHQWDFFHVVDQGFRQYHQLHQFHLQFOXGLQJSDUWLFLSDWLRQLQDKHDOWKSODQ
QHWZRUNTXDOLW\SULFH,7VROXWLRQLQWHJUDWLRQDQGGHSWKDQGEUHDGWKRIWHVWDQGVHUYLFHRIIHULQJ
Hospitals.+RVSLWDOVJHQHUDOO\PDLQWDLQDQRQVLWHODERUDWRU\WRSHUIRUPWKHVLJQLILFDQWPDMRULW\RIFOLQLFDOWHVWLQJIRU
WKHLUSDWLHQWVDQGUHIHUHVRWHULFWHVWLQJWRRXWVLGHVHUYLFHSURYLGHUVZKLFKW\SLFDOO\FKDUJHWKHKRVSLWDOVRQDQHJRWLDWHGIHHIRU
VHUYLFHEDVLV)HHVFKHGXOHVIRUKRVSLWDOUHIHUHQFHWHVWLQJVHUYLFHVRIWHQDUHQHJRWLDWHGRQEHKDOIRIKRVSLWDOVE\JURXS
48(67',$*1267,&6)250.