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Quest Diagnostics Incorporated (NYSE:DGX) is an American clinical laboratory founded in 1967 as Metropolitan Pathology Laboratory, Inc. It became an independent corporation with the Quest name on December 31, 1996. As a Fortune 500 company, Quest operates in the United States, (including Puerto Rico), United Kingdom, Mexico, and Brazil.[2] Quest also maintains collaborative agreements with various hospitals and clinics across the globe.[3]

Quest Diagnostics Incorporated
Public
Traded asNYSEDGX
S&P 500 Component
IndustryHealth care
FoundedNew York City, United States (1967)
FounderPaul Brown
Headquarters,
United States
Area served
Key people
Steve Rusckowski
(Chairman, President, & CEO)[1]
Services
RevenueIncrease US$7.709 billion (2017)[1]
Decrease US$1.165 billion (2017)[1]
Increase US$772 million (2017)[1]
Total assetsIncrease US$10.503 billion (2017)[1]
Total equityIncrease US$4.921 billion (2017)[1]
Number of employees
~45,000 (December 2017)[1]
Websitewww.questdiagnostics.com Edit this at Wikidata

As of 2017 the company had approximately 45,000 employees, and generated more than $7.7 billion in revenue.[4] The company offers access to diagnostic testing services for cancer, cardiovascular disease, infectious disease, neurological disorders and employment and court ordered drug testing.[5]

HistoryEdit

 
Interior of a Quest Diagnostics office in Franconia, Virginia

1960-1995Edit

Originally founded as Metropolitan Pathology Laboratory, Inc., in 1967 by Paul A. Brown, MD, the clinical laboratory underwent a variety of rebranding processes.[6] In 1969, the company's name changed to MetPath, Inc.[7] with headquarters in Teaneck, New Jersey. By 1982, MetPath was acquired by what was then known as Corning Glass Works,[8] and subsequently renamed Corning Clinical Laboratories.[9]

1996-2000Edit

On December 31, 1996, Quest Diagnostics became an independent company as a spin-off from Corning.[9][10] Kenneth Freeman was appointed as CEO during this transition.[11][12] Over the next year, Quest acquired a clinical laboratory division of Branford, CT-based Diagnostic Medical Laboratory, Inc. (DML).[13] Two years later in 1999, Quest added SmithKline Beecham Clinical Laboratories to their subsidiaries;[14][15] which includes a joint venture ownership with CompuNet Clinical Laboratory.[16]

The new millennium welcomed the launch of Quest's Six Sigma in 2000, a data-centered approach to process improvement strategy within the healthcare industry.

2001-2015Edit

From May 2004-April 2012, Surya Mohapatra, PhD, served as the company's President and CEO. In 2007 Quest acquired diagnostic testing equipment company AmeriPath.[17] In response to Mohapatra's resignation after eight years with Quest, former Philips Healthcare CEO Stephen Rusckowski was appointed.[18] Under Rusckowski, Quest Diagnostics teamed up with central New England's largest health care system, UMass Memorial Health Care, to purchase its clinical outreach laboratory.[19]

In 2014 Quest launched a collaboration with University of California, San Francisco to speed the transition from biomedical research to advanced diagnostic methods in the field of precision medicine.[20]

Memorial Sloan Kettering Cancer Center joined with Quest in 2014 to advance precision medicine in the diagnosis and treatment of cancer.[21]

Quest opened a 200,000 square-foot clinical testing lab in 2014 in Marlborough, outside Boston. The facility was a consolidation of 1,350 employees from five other labs in the region.[22]

In 2015 Quest teamed with LabCorp and French researchers to improve interpretations of mutations in the two main breast cancer risk genes, BRCA1 and BRCA2.[23]

2016-presentEdit

In 2016 Quest collaborated with Safeway to bring testing services to twelve stores of its stores in California, Maryland, Virginia, Texas and Colorado.[24]

By the end of 2017 Quest, in partnership with Walmart, incorporated laboratory testing in about 15 of their locations in Texas and Florida.[25]

In May 2018 the company announced it will become an in-network laboratory provider to UnitedHealthcare starting in 2019, providing access to 48 million plan members.[26]

In September 2018 Quest moved its headquarters from Madison, where it was located since 2007, to Secaucus, New Jersey.[27][28]

In April 2019, Quest released the 30th annual Drug Testing Index, which tracks the rates of drug testing positivity in the US workforce and provides analysis.[29]

AcquisitionsEdit

  • 2001: Completes acquisition of Ohio-based MedPlus, Inc. (NASDAQMEDP), a healthcare technology company.
  • 2002: Completes acquisition of Virginia-based American Medical Laboratories, Inc. (AML) and an affiliated company of AML, LabPortal, Inc., for approximately $500 million in cash.
  • 2003: Completes acquisition of California-based Unilab Corporation (NASDAQULAB) in a transaction valued at approximately $800 million.
  • 2005: Completes acquisition of Lenexa, Kansas-based LabOne, Inc., which includes the Employer Solutions drug testing division and the ExamOne paramedical testing disivion, (NASDAQLABS) for approximately $934 million.
  • 2005: Forms a strategic alliance with Ciphergen Biosystems to commercialize novel proteomic tests.[30]
  • 2006: Completes acquisition of Virginia-based Focus Diagnostics, Inc., an infectious and immunologic disease laboratory, for approximately $185 million in cash.
  • 2007: Completes acquisition of Sweden-based Hemocue, a point-of-care diagnostic testing company.
  • 2007: Acquires AmeriPath (and subsidiary Specialty Laboratories) from Welsh, Carson, Anderson & Stowe, becoming the leading provider of cancer diagnostic testing services.[31]
  • 2011: Acquires Athena Diagnostics from Thermo Fisher Scientific.[32]
  • 2011: Completes acquisition of Celera Corporation, a company that became famous by its sequencing of the Human Genome.[33]
  • 2014: Acquires Solstas Lab Partners Group (and subsidiaries)[34]
  • 2014: Acquires Summit Health, Inc.[35]
  • 2017: Acquires Cleveland HeartLab, Inc.[36]
  • 2018: Acquires U.S. laboratory services business of Oxford Immunotec.[37]

ControversiesEdit

Quest Diagnostics set a record in April 2009 when it paid $302 million to the government to settle a Medicare fraud case alleging the company sold faulty medical testing kits. It was the largest qui tam (whistleblower) settlement paid by a medical lab for manufacturing and distributing a faulty product.[38] In May 2011, Quest paid $241 million to the state of California to settle a False Claims Act case that alleged the company had overcharged Medi-Cal, the state's Medicaid program, and provided illegal kickbacks as incentives for healthcare providers to use Quest labs.[39]

In 2018, Quest Diagnostics was among a number of US based labs linked to inaccuracies of over 200 women's cervical smear tests for CervicalCheck, Ireland's national screening programme.[40][41]

On June 3, 2019 Quest announced that American Medical Collection Agency (AMCA), a billing collections service provider, had informed Quest Diagnostics that an unauthorized user had access to AMCA’s system containing personal information AMCA received from various entities, including from Quest.[42] AMCA provides billing collections services to Optum360, which in turn is a Quest contractor.[43]

ReferencesEdit

  1. ^ a b c d e f g "Quest Diagnostics Incorporated 2017 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 2018.
  2. ^ "International Facilities & Operations". Quest Diagnostics. Retrieved October 17, 2018.
  3. ^ "Our Growing International Presence". Quest Diagnostics. Archived from the original on March 3, 2012. Retrieved February 15, 2012.
  4. ^ "Quest Diagnostics Incorporated Form 10-K". U.S. Securities and Exchange Commission. December 31, 2017. Retrieved October 17, 2018.
  5. ^ "Annual Reports". Quest Diagnostics. December 31, 2015. Retrieved October 26, 2016.
  6. ^ "Quest Diagnostics celebrates 50 years". North Jersey. Retrieved October 23, 2018.
  7. ^ "A. Raymond Bessette, 82, investment banker, built skating rink". The Ridgefield Press. March 5, 2013. Retrieved October 23, 2018.
  8. ^ "Corning Glass To Buy Metpath". The New York Times. Retrieved October 23, 2018.
  9. ^ a b "History of Quest Diagnostics Inc". FundingUniverse. Archived from the original on October 23, 2018. Retrieved October 23, 2018.
  10. ^ "Corning to Spin Off 2 Subsidiaries to Shareholders". The New York Times. Reuters. Retrieved October 31, 2018.
  11. ^ Nicolai, Kathryn (February 2018). "Kenneth W. Freeman college of management named after $25 million donation". The Bucknellian. Retrieved October 31, 2018.
  12. ^ "Kenneth W. Freeman Named Dean of SMG". BU Today. Boston University. Retrieved October 31, 2018.
  13. ^ "Quest Diagnostics Acquires Assets Of Diagnostics Medical Laboratory Inc". Quest Diagnostics. Retrieved February 15, 2012.
  14. ^ Nouri, Paul (February 16, 2012). "Investors Should Wait Out Quest And LabCorp". Seeking Alpha. Retrieved October 31, 2018.
  15. ^ "A Guide to Being Compassionate During Layoffs". Harvard Business Review. February 25, 2016. Retrieved October 31, 2018.
  16. ^ "Compunet names new CEO". Dayton Business Journal. October 20, 2014. Retrieved October 31, 2018.
  17. ^ Reuters (April 16, 2007). "Quest Buying AmeriPath For $1.23 Billion". Retrieved February 4, 2019.
  18. ^ "Surya N. Mohapatra". Columbia Business Schools. Retrieved March 31, 2018.
  19. ^ "DGX to Buy UMass Medical Lab (revised)". Yahoo Finance. October 23, 2012. Retrieved May 18, 2015.
  20. ^ "UCSF, Quest Diagnostics Launch Collaboration to Advance Precision Medicine". UC San Francisco. Retrieved November 7, 2018.
  21. ^ "Memorial Sloan Kettering Cancer Center and Quest Diagnostics Partner to Advance Precision Medicine in Cancer Diagnosis and Treatment" (Press release). Memorial Sloan Kettering Cancer Center. Retrieved November 13, 2018.
  22. ^ Seiffert, Don (October 3, 2014). "Quest opens Marlborough lab, plans to consolidate 1,350 workers there". Boston Business Journal. Retrieved November 20, 2018.
  23. ^ "New Genetic Tests for Breast Cancer Hold Promise". The New York Times. Retrieved November 27, 2018.
  24. ^ "Safeway, Quest Diagnostics bring testing services to 12 stores". Supermarket News. June 15, 2016. Retrieved October 23, 2018.
  25. ^ "Walmart partners with Quest Diagnostics to bring lab testing to 15 stores". pharmacist.com. Retrieved November 7, 2018. Italic or bold markup not allowed in: |website= (help)
  26. ^ Coombs, Bertha (May 26, 2018). "Here's why investors are cheering Quest and LabCorp losing their exclusive contracts". CNBC. Retrieved December 3, 2018.
  27. ^ "For Murphy, Quest Diagnostics ribbon-cutting is example of what can be". ROI-NJ. September 27, 2018. Retrieved October 23, 2018.
  28. ^ "Quest Diagnostics to relocate headquarters to Secaucus". The Star-Ledger. Retrieved October 23, 2018.
  29. ^ Coombs, Bertha (April 11, 2019). "Workforce Drug Testing Positivity Climbs to Highest Rate Since 2004, According to New Quest Diagnostics Analysis". Press Release. Retrieved April 11, 2019.
  30. ^ "Ciphergen Biosystems and Quest Diagnostics Form Strategic Alliance to Develop and Commercialize Tests Using Ciphergen's Proteomics Technology". July 22, 2005. Archived from the original on March 5, 2016. Retrieved July 26, 2013.
  31. ^ Reuters (April 16, 2007). "Quest Buying AmeriPath For $1.23 Billion". Retrieved February 4, 2019.
  32. ^ "Thermo Fisher to Buy Phadia for $3.5 Billion". DealBook. Retrieved October 23, 2018.
  33. ^ "Quest Diagnostics Successfully Completes Acquisition of Celera" (Press release). Celera Corporation. May 17, 2011. Archived from the original on July 9, 2011. Retrieved February 16, 2012.
  34. ^ "Quest Diagnostics Acquires Solstas for $570M". News: Industry Watch (paper). 34 (4). February 15, 2014. p. 10.
  35. ^ "Quest Diagnostics Completes Acquisition of Summit Health - Apr 21, 2014". Quest Diagnostics. Retrieved July 16, 2015.
  36. ^ Christ, Ginger (October 19, 2017). "Quest Diagnostics to acquire Cleveland Clinic spinoff Cleveland HeartLab". The Plain Dealer. Retrieved October 19, 2017.
  37. ^ "Quest buying U.S. lab services unit from British firm". ROI-NJ. September 25, 2018. Retrieved October 23, 2018.
  38. ^ "Businessman exposed problems with Quest subsidiary's blood test kits; led to $302 million settlement" (Press release). Phillips & Cohen LLP. April 15, 2009.
  39. ^ "Attorney General Kamala D. Harris announces $241 million settlement with Quest Diagnostics" (Press release). State of California Department of Justice. May 19, 2011.
  40. ^ O'Brien, Tim (May 2, 2018). "CervicalCheck 10-year timeline". The Irish Times.
  41. ^ O’Regan, Eilish (May 2, 2018). "US company used by CervicalCheck had to pay €100,000 in fines over safety breach". Irish Independent. Retrieved May 12, 2018.
  42. ^ HealthITSecurity (June 3, 2019). "11.9M Quest Diagnostics Patients Impacted by AMCA Data Breach". HealthITSecurity. Retrieved June 5, 2019.
  43. ^ Locker, Melissa (June 3, 2019). "A medical collections agency got hacked, and now your personal data might be exposed". Fast Company. Retrieved June 5, 2019.

External linksEdit