Jim Davis, CEO of Quest Diagnostics, said Wednesday that doctors’ testing orders have increased as patients seek care that they had previously delayed during the COVID-19 pandemic.
He said the company’s testing volume has exceeded pre-pandemic levels.
“We continue to see a slight increase in testing density. Davis, who became CEO in November, said some of the causes could be delayed care. “As we engage more in an inflationary environment from a healthcare cost standpoint, it is affecting employer bottom lines. They are very motivated to work directly with us.”
Quest plans to expand molecular and genetic testing as well as in-home services. It will also reach more health systems, which may want to outsource some operations in their labs, Davis said.
“Given some of the financial pressures hospitals are facing today, they would probably choose not to pursue this outreach business anymore—it requires a lot of capital and may not be a priority. hospital’s top [chief financial officer]”Davis said. “The funnel seems to fit many hospital lab access transactions; it helps them monetize that property.”
The Centers for Medicare and Medicaid Services pays $100 for polymerase chain reaction COVID-19 tests, and that rate will drop to $51 after the public health emergency ends. Davis said Quest plans to charge insurers $51 and will urge them to cover all types of COVID-19 testing.
—Alex Kacik
