Quest Diagnostics 2015 Annual Report Download - page 41

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Our operations may be adversely impacted by the effects of natural disasters such as hurricanes and earthquakes,
health pandemics, hostilities or acts of terrorism and other criminal activities.
Our operations may be adversely impacted by the effects of natural disasters such as hurricanes and earthquakes,
health pandemics, hostilities or acts of terrorism or other criminal activities. Such events may result in a temporary decline in
the number of patients who seek clinical testing services or in our employees' ability to perform their job duties. In addition,
such events may temporarily interrupt our ability to transport specimens, to receive materials from our suppliers or otherwise to
provide our services.
Our business could be adversely impacted by adoption of new coding for tests.
The American Medical Association CPT® Editorial Panel is continuing its process of establishing billing codes to
replace codes that describe procedures used in performing molecular testing and toxicology testing. The adoption of these
codes is allowing payers to better determine tests being performed. This has led, and could continue to lead, to limited coverage
decisions, payment denials or new procedures or conditions for payment. Health plans, Medicare contractors and Medicaid
programs continue to consider or implement the new codes and issue coverage and payment decisions. Payment levels for
many new codes remain largely unresolved and healthcare providers continue to address implementation of the new codes.
Our business could be adversely impacted by CMS' adoption of the new coding set for diagnoses.
CMS has adopted a new coding set for diagnosis, commonly known as ICD-10, which significantly expands the
coding set for diagnoses. The new coding set was implemented October 1, 2015. Clinicians may fail to provide appropriate
codes for desired tests, and our claims for reimbursement using the new codes may be denied. Further, delays in billing
historically have resulted in increased costs and decreased collection of payment.
Adverse results in material litigation could have an adverse financial impact and an adverse impact on our client base
and reputation.
We are involved in various legal proceedings arising in the ordinary course of business including, among other things,
disputes as to intellectual property, professional liability and employee-related matters, as well as inquiries from governmental
agencies and Medicare or Medicaid carriers. Some of the proceedings against us involve claims that are substantial in amount
and could divert management's attention from operations. The proceedings also may result in substantial monetary damages.
Our operations may be adversely impacted by the effect of trends in the U.S. healthcare system, including healthcare
utilization and increased patient financial responsibility for services.
Our operations may be adversely impacted by the effects of trends in the utilization of the healthcare system in the
United States. Trends in the utilization of the U.S. healthcare system can be influenced by such factors as under-employed
workers, decisions to delay medical care and increased patient financial responsibility for medical care. Declining utilization of
the U.S. healthcare system may result in a decline in the number of patients who seek clinical testing services.
In the current environment, patients are encouraged to take increased interest in and responsibility for, and often are
bearing increased financial responsibility for, their healthcare. Our operations also may be adversely impacted by the recent
trend to increased patient responsibility for payment for healthcare services, including diagnostic information services.
CAUTIONARY FACTORS THAT MAY AFFECT FUTURE RESULTS
Some statements and disclosures in this document are forward-looking statements. Forward-looking statements
include all statements that do not relate solely to historical or current facts and can be identified by 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, hospitals, physicians and others.
(b) Increased pricing pressure from customers and payers.
(c) A decline in economic conditions.
QUEST DIAGNOSTICS 2015 ANNUAL REPORT ON FORM 10-K