SECAUCUS, N.J., Nov. 20, 2017 /PRNewswire/ -- Quest Diagnostics
(NYSE: DGX), the world's leading provider of diagnostic information
services, today provided an update on the impact of the Centers for
Medicare and Medicaid Services (CMS) publication of finalized 2018
Medicare reimbursement rates for clinical laboratory tests under
the Clinical Lab Fee Schedule (CLFS) pursuant to the Protecting
Access to Medicare Act (PAMA) announced November 17,
2017.
"We are deeply disappointed that CMS did not take into account
much of the feedback received from across the healthcare
ecosystem," said Steve Rusckowski, Chairman, President and CEO
of Quest Diagnostics. "While we acknowledge adjustments to a
few of the most egregious elements of the proposed fee schedule,
the final fee schedule remains deeply flawed because it is plagued
by a distorted market data collection process that excluded
key components of the lab market. As an example, less than 1
percent of all laboratories submitted data, and over 99 percent of
hospital and physician office laboratories were prohibited from
reporting their rates. Also, based on the data submitted to
CMS, Quest alone represented nearly 40 percent of all the market
data CMS collected despite accounting for less than 15 percent of
Medicare claims under CLFS."
The company expects the impact of the final fee schedule rates
under PAMA to be approximately 4% in 2018, and approximately 10% in
both 2019 and 2020.
Mr. Rusckowski continued, "These cuts will hurt the industry and
our company. We have begun to plan for the worst case, and, as we
have said previously, despite the flawed implementation of PAMA, we
remain confident in our ability to meet the long-term financial
commitments outlined at our 2016 Investor Day."
Conference Call Information
Quest Diagnostics will hold a conference call to discuss the
financial impact of the final 2018 Medicare payment rates beginning
at 8:30 a.m. Eastern Time Tuesday,
November 21, 2017. The conference call can be accessed
in listen-only mode by dialing 773-756-0467, passcode 3214469.
The company suggests participants dial in approximately 10 minutes
before the call.
A replay of the call may be accessed online
at www.QuestDiagnostics.com/investor or by phone at
800-839-2313 for domestic callers or 203-369-3137 for
international callers. Telephone replays will be available from
approximately 10:30 a.m. Eastern Time on November 21,
2017 until midnight Eastern Time on December 5,
2017. Anyone listening to the call is encouraged to read the
company's periodic reports, on file with the Securities and
Exchange Commission, including the discussion of risk factors and
historical results of operations and financial condition in those
reports.
About Quest Diagnostics
Quest Diagnostics empowers people to take action to improve
health outcomes. Derived from the world's largest database of
clinical lab results, our diagnostic insights reveal new avenues to
identify and treat disease, inspire healthy behaviors and improve
health care management. Quest annually serves one in three adult
Americans and half the physicians and hospitals
in the United States, and our 43,000 employees understand
that, in the right hands and with the right context, our diagnostic
insights can inspire actions that transform
lives. www.QuestDiagnostics.com.
50th Anniversary: In 2017, Quest Diagnostics celebrates 50 years
of life-changing results. To learn about our legacy of
accomplishments and quest to improve healthcare in the future,
visit www.QuestDiagnostics.com/50Years.
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SOURCE Quest Diagnostics