Quest Diagnostics Inc (DGX) |
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Quest Diagnostics Inc's Customers Performance
DGX
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DGX's Source of Revenues |
Quest Diagnostics Inc's Corporate Customers have recorded an advance in their cost of revenue by 9.16 % in the 4 quarter 2023 year on year, sequentially costs of revenue grew by 34.75 %. During the corresponding time, Quest Diagnostics Inc revenue deteriorated by -1.93 % year on year, sequentially revenue fell by -0.31 %. While revenue at the Quest Diagnostics Inc's corporate clients recorded rose by 9.38 % year on year, sequentially revenue grew by 26.72 %.
• List of DGX Customers
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Quest Diagnostics Inc's Customers have recorded an advance in their cost of revenue by 9.16 % in the 4 quarter 2023 year on year, sequentially costs of revenue grew by 34.75 %, for the same period Quest Diagnostics Inc revnue deteriorated by -1.93 % year on year, sequentially revnue fell by -0.31 %.
• List of DGX Customers
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Select the Category:
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Customers Net Income fell in Q4 by |
Customers Net margin fell to % |
-4.01 % |
2.86 % |
Quest Diagnostics Inc's Comment on Sales, Marketing and Customers
We provide diagnostic information services to a broad range of customers, including
physicians, hospitals, IDNs, patients and employers. In many cases, the customer
that orders the services is not responsible to pay for them. Depending on the
billing arrangement and applicable law, the payer may be the patient or a third
party; in some cases, patients may bear responsibility for a portion of the payment.
Examples of potential third-party payers include health insurance plans, self-insured
employer benefit funds, accountable care organizations, patient-centered medical
homes, the traditional Medicare or Medicaid program, physicians or others (e.g.,
a hospital, another laboratory or an employer). In light of health care reform,
there is increased market activity regarding alternative payment models, including
bundled payment models.
Health plans. Health plans, including managed care organizations and other
health insurance providers, typically reimburse us as a contracted provider
on behalf of their members for diagnostic information services performed. Reimbursement
from our five largest health plans totaled less than 20%, and no one health
plan accounted for 10%, of our consolidated net revenues.
Health plans typically negotiate directly or indirectly with a number of diagnostic
information services providers, and represent approximately one-half of our
total clinical testing volumes and one-half of our net revenues from diagnostic
information services. The trend of consolidation among health plans has continued.
In certain locations, health plans may delegate to independent physician associations
(“IPAs”) or other alternative delivery systems (e.g., physician
hospital organizations, accountable care organizations and patient centered
medical homes) the ability to negotiate for diagnostic information services
on behalf of certain members.
Health plans and IPAs often require that diagnostic information services providers
accept discounted fee structures or assume all or a portion of the financial
risk associated with providing such services through capitated payment arrangements
and discounted fee-for-service arrangements. Under capitated payment arrangements,
we provide services at a predetermined monthly reimbursement rate for each covered
member, generally regardless of the number or cost of services provided by us.
Health plans offer preferred provider organization (“PPO”) plans,
point-of-service (“POS”) plans, consumer driven health plans (“CDHPs”),
high deductible plans and other coverage programs. Reimbursement under these
programs is typically negotiated on a fee-for-service basis. To the extent that
plans and programs require greater levels of patient cost-sharing, this could
negatively impact patient collection experience.
Most of our agreements with major health plans are non-exclusive arrangements.
Certain health plans have limited their diagnostics information services network
to only a single national provider, seeking to obtain improved pricing. Health
plans also are narrowing their provider networks.
We also sometimes are a member of a “complementary network.” A
complementary network generally is a set of contractual arrangements that a
third party will maintain with various providers that provide discounted fees
for the benefit of its customers. A member of a health plan may choose to access
a non-contracted provider that is a member of a complementary network; if so,
the provider will be reimbursed at a rate negotiated by the complementary network.
We attempt to strengthen our relationships with health plans and increase the
volume of our services for their members by offering to health plans services
and programs that leverage our Companys expertise and resources, including
our superior access, extensive test menu, medical staff, data, and wellness
and disease management capabilities.
Physicians. Physicians, including both primary care physicians and specialists,
requiring diagnostic information services for patients are the primary referral
source of our services. Physicians determine which laboratory to recommend or
use based on a variety of factors, including: service; patient access and convenience,
including participation in a health plan network; quality; price; and depth
and breadth of test and service offering.
Hospitals. Hospitals generally maintain an on-site laboratory to perform the
significant majority of clinical testing for their patients and refer less frequently
needed and highly specialized procedures to outside service providers, which
typically charge the hospitals on a negotiated fee-for-service basis. Fee schedules
for hospital reference testing services often are negotiated on behalf of hospitals
by group purchasing organizations. We provide services to hospitals throughout
the United States, including esoteric testing services, in some cases helping
manage their laboratories and serving as the medical directors of the hospitals
histology or clinical laboratory. We believe that we are the industrys leader
in servicing hospitals. Hospitals generally continue to look for ways to fully
utilize their existing laboratory capacity: they perform testing their patients
need and may compete with non-hospital providers for outreach (non-hospital
patients) testing. Continuing to obtain referrals from hospitals depends on
our ability to provide high quality services that are more cost-effective than
if the hospitals were to perform the services themselves.
Hospitals may seek to leverage their relationships with community physicians
by encouraging the physicians to send their outreach testing to the hospitals
laboratory. In addition, hospitals that own physician practices may require
the practices to refer testing to the hospitals affiliated laboratory. In recent
years, there has been a trend of hospitals acquiring physician practices, and
as a result, an increased percentage of physician practices are owned by hospitals.
Increased hospital acquisitions of physician practices enhance physician ties
to hospital-affiliated laboratories and may strengthen their competitive position.
Hospitals can have greater leverage with health insurers than do commercial
clinical laboratories, particularly hospitals that have a significant market
share; hospitals thus have been frequently able to negotiate higher reimbursement
rates with health insurance plans than commercial clinical laboratories for
comparable clinical testing services. In light of continued pressure to reduce
systemic healthcare costs, hospitals may change their approach to providing
clinical testing services. We believe that our combination of services, including
full-service, bi-coastal esoteric testing capabilities, medical and scientific
professionals available for consultation, connectivity solutions, strong focus
on quality and dedicated sales and service professionals has positioned us to
be an attractive partner for hospitals, offering a full range of strategic relationships.
We also have joint venture arrangements with leading IDNs in several metropolitan
areas. These joint venture arrangements, which provide diagnostic information
services for affiliated hospitals as well as for unaffiliated physicians and
other local healthcare providers, serve as our principal facilities in their
service areas. Typically, we have either a majority ownership interest in, or
day-to-day management responsibilities for, our joint venture relationships.
IDNs. An IDN is a network of providers and facilities working together in providing
or arranging for the provision of healthcare. With the passage of 2010 federal
healthcare reform legislation, IDNs are increasing in number and becoming more
important constituents in delivering healthcare services. IDNs may exercise
operational and financial control over providers across the continuum of care.
IDNs also may function as a payer. Thus, IDNs may be able to manage the health
of a population group within a defined geography, and also may be able to influence
the cost and quality of healthcare delivery, for example through owned entities
and through ancillary services. IDNs actively are considering bundled payment
models for services that they are purchasing, like diagnostic information services.
The impact of IDNs on the provision of healthcare services to date has varied.
We are actively engaging with IDNs to demonstrate the value that our services
can provide to them.
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Quest Diagnostics Inc's Comment on Sales, Marketing and Customers
We provide diagnostic information services to a broad range of customers, including
physicians, hospitals, IDNs, patients and employers. In many cases, the customer
that orders the services is not responsible to pay for them. Depending on the
billing arrangement and applicable law, the payer may be the patient or a third
party; in some cases, patients may bear responsibility for a portion of the payment.
Examples of potential third-party payers include health insurance plans, self-insured
employer benefit funds, accountable care organizations, patient-centered medical
homes, the traditional Medicare or Medicaid program, physicians or others (e.g.,
a hospital, another laboratory or an employer). In light of health care reform,
there is increased market activity regarding alternative payment models, including
bundled payment models.
Health plans. Health plans, including managed care organizations and other
health insurance providers, typically reimburse us as a contracted provider
on behalf of their members for diagnostic information services performed. Reimbursement
from our five largest health plans totaled less than 20%, and no one health
plan accounted for 10%, of our consolidated net revenues.
Health plans typically negotiate directly or indirectly with a number of diagnostic
information services providers, and represent approximately one-half of our
total clinical testing volumes and one-half of our net revenues from diagnostic
information services. The trend of consolidation among health plans has continued.
In certain locations, health plans may delegate to independent physician associations
(“IPAs”) or other alternative delivery systems (e.g., physician
hospital organizations, accountable care organizations and patient centered
medical homes) the ability to negotiate for diagnostic information services
on behalf of certain members.
Health plans and IPAs often require that diagnostic information services providers
accept discounted fee structures or assume all or a portion of the financial
risk associated with providing such services through capitated payment arrangements
and discounted fee-for-service arrangements. Under capitated payment arrangements,
we provide services at a predetermined monthly reimbursement rate for each covered
member, generally regardless of the number or cost of services provided by us.
Health plans offer preferred provider organization (“PPO”) plans,
point-of-service (“POS”) plans, consumer driven health plans (“CDHPs”),
high deductible plans and other coverage programs. Reimbursement under these
programs is typically negotiated on a fee-for-service basis. To the extent that
plans and programs require greater levels of patient cost-sharing, this could
negatively impact patient collection experience.
Most of our agreements with major health plans are non-exclusive arrangements.
Certain health plans have limited their diagnostics information services network
to only a single national provider, seeking to obtain improved pricing. Health
plans also are narrowing their provider networks.
We also sometimes are a member of a “complementary network.” A
complementary network generally is a set of contractual arrangements that a
third party will maintain with various providers that provide discounted fees
for the benefit of its customers. A member of a health plan may choose to access
a non-contracted provider that is a member of a complementary network; if so,
the provider will be reimbursed at a rate negotiated by the complementary network.
We attempt to strengthen our relationships with health plans and increase the
volume of our services for their members by offering to health plans services
and programs that leverage our Companys expertise and resources, including
our superior access, extensive test menu, medical staff, data, and wellness
and disease management capabilities.
Physicians. Physicians, including both primary care physicians and specialists,
requiring diagnostic information services for patients are the primary referral
source of our services. Physicians determine which laboratory to recommend or
use based on a variety of factors, including: service; patient access and convenience,
including participation in a health plan network; quality; price; and depth
and breadth of test and service offering.
Hospitals. Hospitals generally maintain an on-site laboratory to perform the
significant majority of clinical testing for their patients and refer less frequently
needed and highly specialized procedures to outside service providers, which
typically charge the hospitals on a negotiated fee-for-service basis. Fee schedules
for hospital reference testing services often are negotiated on behalf of hospitals
by group purchasing organizations. We provide services to hospitals throughout
the United States, including esoteric testing services, in some cases helping
manage their laboratories and serving as the medical directors of the hospitals
histology or clinical laboratory. We believe that we are the industrys leader
in servicing hospitals. Hospitals generally continue to look for ways to fully
utilize their existing laboratory capacity: they perform testing their patients
need and may compete with non-hospital providers for outreach (non-hospital
patients) testing. Continuing to obtain referrals from hospitals depends on
our ability to provide high quality services that are more cost-effective than
if the hospitals were to perform the services themselves.
Hospitals may seek to leverage their relationships with community physicians
by encouraging the physicians to send their outreach testing to the hospitals
laboratory. In addition, hospitals that own physician practices may require
the practices to refer testing to the hospitals affiliated laboratory. In recent
years, there has been a trend of hospitals acquiring physician practices, and
as a result, an increased percentage of physician practices are owned by hospitals.
Increased hospital acquisitions of physician practices enhance physician ties
to hospital-affiliated laboratories and may strengthen their competitive position.
Hospitals can have greater leverage with health insurers than do commercial
clinical laboratories, particularly hospitals that have a significant market
share; hospitals thus have been frequently able to negotiate higher reimbursement
rates with health insurance plans than commercial clinical laboratories for
comparable clinical testing services. In light of continued pressure to reduce
systemic healthcare costs, hospitals may change their approach to providing
clinical testing services. We believe that our combination of services, including
full-service, bi-coastal esoteric testing capabilities, medical and scientific
professionals available for consultation, connectivity solutions, strong focus
on quality and dedicated sales and service professionals has positioned us to
be an attractive partner for hospitals, offering a full range of strategic relationships.
We also have joint venture arrangements with leading IDNs in several metropolitan
areas. These joint venture arrangements, which provide diagnostic information
services for affiliated hospitals as well as for unaffiliated physicians and
other local healthcare providers, serve as our principal facilities in their
service areas. Typically, we have either a majority ownership interest in, or
day-to-day management responsibilities for, our joint venture relationships.
IDNs. An IDN is a network of providers and facilities working together in providing
or arranging for the provision of healthcare. With the passage of 2010 federal
healthcare reform legislation, IDNs are increasing in number and becoming more
important constituents in delivering healthcare services. IDNs may exercise
operational and financial control over providers across the continuum of care.
IDNs also may function as a payer. Thus, IDNs may be able to manage the health
of a population group within a defined geography, and also may be able to influence
the cost and quality of healthcare delivery, for example through owned entities
and through ancillary services. IDNs actively are considering bundled payment
models for services that they are purchasing, like diagnostic information services.
The impact of IDNs on the provision of healthcare services to date has varied.
We are actively engaging with IDNs to demonstrate the value that our services
can provide to them.
DGX's vs. Customers, Data
(Revenue and Income for Trailing 12 Months, in Millions of $, except Employees)
COMPANY NAME |
MARKET CAP |
REVENUES |
INCOME |
EMPLOYEES |
Quest Diagnostics Inc |
15,177.03 |
9,252.00 |
908.00 |
49,000 |
Cvs Health Corporation |
102,862.05 |
357,776.00 |
8,368.00 |
300,000 |
Davita Inc |
12,866.09 |
12,140.15 |
956.98 |
69,000 |
Fresenius Medical Care Ag |
5,548.45 |
21,788.05 |
820.35 |
1,254 |
Heartland Media Acquisition Corp |
202.86 |
0.00 |
4.01 |
0 |
The Kroger Co |
41,419.25 |
147,797.00 |
1,881.00 |
420,000 |
Rite Aid Corp |
35.86 |
23,475.49 |
-1,635.20 |
50,000 |
Tenet Healthcare Corp |
11,247.32 |
20,548.00 |
1,311.00 |
108,000 |
SUBTOTAL |
174,181.88 |
583,524.69 |
11,706.14 |
948,254 |
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