In order to promote its electronic health record (EHR) solution, leading provider of commercial laboratory services Quest Diagnostics (DGX) is actively taking part in a live Road Test tour where it will showcase its Care360 EHR solution.
This 12-week, 10-city tour will exhibit the clinical as well as financial effectiveness of Care360 to healthcare providers, who can avail of government incentives worth $39 billion.
A tour bus with learning equipment will provide this interactive demonstration on EHR features, functionality, Clinical Decision Support (CDS), ePrescribing, secure messaging and Care360 EHR. Also it will display how the mobile device and its latest technology help operate the Care360 EHR at home or office thus enabling virtual office visits for their patients.
Quest has made good progress with its healthcare IT (HIT) initiative. This Care360 EHR was certified for meaningful use during the fourth quarter of fiscal 2010 with more than 1,800 doctors using it. This certification implies that by using this system, the physicians qualify for the federal incentives of up to $44,000 over five years.
At the end of 2010, Quest’s customers were using the ePrescribing features of Care360 system at the rate of 22 million medications a year, up 70% compared to the previous year. The company expects a further boost in its EHR business based on this Care360 road show.
After several quarters of declining clinical testing volume, the positive 0.1% growth in volume during the fourth quarter is encouraging. With positive volume growth coupled with stability in pricing, the company is set for a gradual recovery. We are encouraged by Quest’s strong portfolio of tests, many of which are finding greater acceptance with time.
Moreover the company is focusing on the booming HIT market in order to drive growth. However, the company faces steep competition from Laboratory Corporation of America Holdings (LH). Based on favorable demographic trends and strong focus, Quest will continue to be one of the leading players in the industry.
We are currently Neutral on the stock, which also corresponds to a Zacks #3 Rank (Hold) in the short term.
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