Diagnostic testing company Quest Diagnostics (NYSE:DGX) is looking to grow its healthcare IT business following an increase in fourth-quarter revenue and profits partly from acquisitions made last year.
The Madison, New Jersey lab testing giant had sales of $1.86 billion with profits of $189.5 million in the fourth quarter.
Last year, Quest Diagnostics made two acquisitions to boost its specialized lab testing capabilities — Athena Diagnostics and Celera.
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In a conference call with analysts, Quest Diagnostics CEO Surya N. Mohapatra said the company’s growth strategy is based on three elements, including driving innovative new tests and advancing healthcare IT services. It also wants to enhance the effectiveness of its sales and strengthen its relationship with health plans and other payers.
It plans to increase the use of its Care360 Electronic Health Record program by offering an 85 percent discount through its EHR grant program.
Mohapatra said about 200,000 physicians and clinicians use its digital technology for lab orders and results, and estimates their use of its e-prescribing service rose about 50 percent. Its Care360 platform is used by 4,400 physicians, Mohapatra said.
Revenue from its nonclinical testing business, which includes healthcare IT, rose 7 percent. It also has a smartphone app for consumers to view their lab test results called Gazelle.
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Companies in the healthcare IT sector have sought to benefit from incentives offered through a program by the Centers for Medicare and Medicaid to encourage early adoption of EHR created by the Health Information Technology for Economic and Clinical Health Act and American Recovery and Reinvestment Act.
Quest is in the midst of a search for a new CEO to replace Mohapatra. At the time the announcement was made in October of last year, Mohapatra said he would continue to stay on as chairman and CEO for six months to help with the transition.