![]() Quest said the positive impact of delays in payment rate cuts related to the Protecting Access to Medicare Act will have an upside of $80 million to $85 million, although Davis cautioned that not all of that will go straight to Quest's bottom line, particularly in light of a challenging inflationary environment. Samad noted that the company is confident in its previous forecast of 4 to 5 percent long-term revenue growth and ability to achieve that growth rate in 2023, although it is still facing a challenging inflationary environment and productivity is still not at pre-pandemic levels. Quest is also reinvigorating its savings program - which twas put on the back burner during the COVID-19 pandemic when any available resources were focused on pandemic response - to offset the impact of pricing increases and wage inflation, Davis added. This year, Quest will make more investments in marketing to promote the site and may make more investments in growth initiatives. The nature of investments in CIT will change, Quest CFO Sam Samad said, as in 2022 the company focused on revamping the website for test ordering. Investments in both the advanced diagnostics and CIT segments will largely be flat, Davis said. Within the segment, he highlighted the potential for sexually transmitted disease testing, a market that is generally not price-sensitive, and added that the company is going to experiment with placing point-of-care molecular diagnostic devices in its service centers, saying that Quest believes patients will pay a premium to get faster results. In 2021, Quest posted $70 million in revenues for the segment, and the firm is rejiggering its pricing as the business grows, Davis said. Overall, Quest estimates it to be a $2 billion market. The company already has over $1 billion in cancer testing revenues today, with strong routine testing and anatomical pathology businesses, but it aims to build out its post-diagnosis capabilities in prognostics, therapy selection, and minimal residual disease testing, Davis said.įor its CIT business, the company aims to reach revenues of $250 million by 2025. Its advanced diagnostics segment includes the genomics and cancer offerings that Quest intends to focus on. It is looking at possible "capability-building" acquisitions as well, largely in the genetics and cancer, metabolic disease, and neurological disease spaces. There are also small regional laboratories choosing to sell their businesses, and Quest is looking to possibly capitalize on such opportunities - particularly in areas of the US where Quest has a smaller share of the lab market. Given the financial pressures many hospitals and health systems face, outreach lab businesses may not be a priority for their executives, providing Quest an opportunity to step in. The firm has been active in hospital laboratory acquisitions and will continue to be opportunistic about M&A going forward, Davis said. SAN FRANCISCO – In a wide-ranging presentation at the 41st Annual JP Morgan Healthcare Conference, Quest Diagnostics' new President and CEO Jim Davis addressed multiple segments of the business, including Quest's hospital and physician laboratory market, advanced diagnostics, and the growing consumer-initiated testing (CIT) efforts.ĭuring his talk on Wednesday, Davis also noted that Quest estimates $9.8 billion in revenues for 2022.
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