Quest Diagnostics

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Quest Diagnostics Incorporated
Public
Traded asNYSEDGX
S&P 500 Component
IndustryHealth care
FoundedNew York City, United States (1967)
FounderPaul Brown
HeadquartersMadison, New Jersey, 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]
Websitequestdiagnostics.com

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]

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, and neurological disorders.[5]

History[edit]

1960-1995[edit]

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]

1996-2000[edit]

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.

2001-2015[edit]

From May 2004-April 2012, Surya Mohapatra, PhD, served as the company's President and CEO. In response to Mohapatra's resignation after 8 years with Quest, former Philips Healthcare CEO Stephen Rusckowski was appointed.[17] 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.[18]

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.[19]

Memorial Sloan Kettering Cancer Center joined with Quest in 2014 to advance precision medicine in the diagnosis and treatment of cancer.[20]

2016-present[edit]

In 2016 Quest collaborated with Safeway to bring testing services to twelve stores of its stores in California, Maryland, Virginia, Texas and Colorado.[21]

By the end of 2017 Quest, in partnership with Walmart, incorporated laboratory testing in about 15 of their locations in Texas and Florida.[22]

In September 2018 Quest moved its headquarters from Madison, where it was located since 2007, to Secaucus, New Jersey. [23] [24]

Acquisitions[edit]

  • 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 Kansas-based LabOne, Inc. (NASDAQLABS) for approximately $934 million.
  • 2005: Forms a strategic alliance with Ciphergen Biosystems to commercialize novel proteomic tests.[25]
  • 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.
  • 2011: Acquires Athena Diagnostics from Thermo Fisher Scientific.[26]
  • 2011: Completes acquisition of Celera Corporation, a company that became famous by its sequencing of the Human Genome.[27]
  • 2014: Acquires Solstas Lab Partners Group (and subsidiaries)[28]
  • 2014: Acquires Summit Health, Inc.[29]
  • 2017: Acquires Cleveland HeartLab, Inc.[30]
  • 2018: Acquires U.S. laboratory services business of Oxford Immunotec.[31]

Controversies[edit]

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.[32] 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.[33]

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.[34][35]

References[edit]

  1. ^ a b c d e f g "Quest Diagnostics Incorporated 2017 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. February 2018.
  2. ^ "Quest Diagnostics : International Facilities & Operations". www.questdiagnostics.com. Retrieved 2018-10-17.
  3. ^ "Our Growing International Presence". Quest Diagnostics. Retrieved 2012-02-15.
  4. ^ "UNITED STATES SECURITIES AND EXCHANGE COMMISSION". SEC.GOV. 31 December 2017. Retrieved 17 October 2018.
  5. ^ "Quest Diagnostics 10-K SEC Filing". Quest Diagnostics 10-K SEC Filing. December 31, 2015. Retrieved October 26, 2016.
  6. ^ "Quest Diagnostics celebrates 50 years". North Jersey. Retrieved 2018-10-23.
  7. ^ "A. Raymond Bessette, 82, investment banker, built skating rink | The Ridgefield Press". The Ridgefield Press. 2013-03-05. Retrieved 2018-10-23.
  8. ^ "Corning Glass To Buy Metpath". Retrieved 2018-10-23.
  9. ^ a b "History of Quest Diagnostics Inc. – FundingUniverse". www.fundinguniverse.com. Retrieved 2018-10-23.
  10. ^ Reuters. "CORNING TO SPIN OFF 2 SUBSIDIARIES TO SHAREHOLDERS". Retrieved 2018-10-31.
  11. ^ Nicolai, Kathryn. "Kenneth W. Freeman college of management named after $25 million donation - The Bucknellian". bucknellian.net. Retrieved 2018-10-31.
  12. ^ "Kenneth W. Freeman Named Dean of SMG | BU Today | Boston University". BU Today. Retrieved 2018-10-31.
  13. ^ "Quest Diagnostics Acquires Assets Of Diagnostics Medical Laboratory Inc". Quest Diagnostics. Retrieved 2012-02-15.
  14. ^ CFP, Paul Nouri, (2012-02-16). "Investors Should Wait Out Quest And LabCorp". Seeking Alpha. Retrieved 2018-10-31.
  15. ^ "A Guide to Being Compassionate During Layoffs". Harvard Business Review. 2016-02-25. Retrieved 2018-10-31.
  16. ^ "Compunet names new CEO". www.bizjournals.com. Retrieved 2018-10-31.
  17. ^ "Surya N. Mohapatra". Columbia Business Schools. Retrieved 2018-03-31.
  18. ^ "DGX to Buy UMass Medical Lab (revised)". Yahoo Finance. 23 October 2012. Retrieved 18 May 2015.
  19. ^ "UCSF, Quest Diagnostics Launch Collaboration to Advance Precision Medicine". UC San Francisco. Retrieved 2018-11-07.
  20. ^ "Memorial Sloan Kettering Cancer Center and Quest Diagnostics Partner to Advance Precision Medicine in Cancer Diagnosis and Treatment | Memorial Sloan Kettering Cancer Center". www.mskcc.org. Retrieved 2018-11-13.
  21. ^ "Safeway, Quest Diagnostics bring testing services to 12 stores". Supermarket News. 2016-06-15. Retrieved 2018-10-23.
  22. ^ "Walmart partners with Quest Diagnostics to bring lab testing to 15 stores". www.pharmacist.com. Retrieved 2018-11-07.
  23. ^ "For Murphy, Quest Diagnostics ribbon-cutting is example of what can be - ROI-NJ". ROI-NJ. 2018-09-27. Retrieved 2018-10-23.
  24. ^ "Quest Diagnostics to relocate headquarters to Secaucus". NJ.com. Retrieved 2018-10-23.
  25. ^ "Ciphergen Biosystems and Quest Diagnostics Form Strategic Alliance to Develop and Commercialize Tests Using Ciphergen's Proteomics Technology". July 22, 2005. Retrieved Jul 26, 2013.
  26. ^ Dealbook. "Thermo Fisher to Buy Phadia for $3.5 Billion". DealBook. Retrieved 2018-10-23.
  27. ^ Quest Diagnostics Successfully Completes Acquisition of Celera Archived July 9, 2011, at the Wayback Machine. May 17, 2011. Celera Corporation. Retrieved 2012-02-16.
  28. ^ "Quest Diagnostics Acquires Solstas for $570M". News: Industry Watch (paper). 34 (4). 15 February 2014. p. 10.
  29. ^ "Quest Diagnostics Completes Acquisition of Summit Health - Apr 21, 2014". newsroom.questdiagnostics.com. Retrieved 2015-07-16.
  30. ^ Christ, Ginger (2017-10-19). "Quest Diagnostics to acquire Cleveland Clinic spinoff Cleveland HeartLab". cleveland.com. Retrieved 2017-10-19.
  31. ^ "Quest buying U.S. lab services unit from British firm - ROI-NJ". ROI-NJ. 2018-09-25. Retrieved 2018-10-23.
  32. ^ "Businessman exposed problems with Quest subsidiary's blood test kits; led to $302 million settlement." Phillips & Cohen LLP press release. April 15, 2009.
  33. ^ "Attorney General Kamala D. Harris announces $241 million settlement with Quest Diagnostics." State of California Department of Justice. May 19, 2011.
  34. ^ O'Brien, Tim (2 May 2018). "CervicalCheck 10-year timeline". The Irish Times.
  35. ^ O’Regan, Eilish (2 May 2018). "US company used by CervicalCheck had to pay €100,000 in fines over safety breach". Irish Independent. Retrieved 12 May 2018.

External links[edit]