Quest Diagnostics
A clinical laboratory services company providing diagnostic testing and health information services.
PE-OWNED
Acquired by Cerberus Capital Management2021-06-01
What Made It Great
Comprehensive diagnostic testing services with nationwide laboratory network
What PE Will Likely Do
Reduction in staffing levels, especially highly skilled laboratory technicians and scientists, leading to longer wait times for diagnostic test results and potential for more errors or delays in diagnoses
Shift towards more automated and less personalized testing processes to reduce costs, potentially leading to lower accuracy and reliability of test results
Closure or scaling back of less profitable testing services, such as specialized genetic or esoteric testing, limiting the range of diagnostic options available to patients
Increased billing upcoding and aggressive pursuit of higher-reimbursement tests and procedures, leading to higher out-of-pocket costs for consumers
Expected Timeline
“0 to 6 months months”
Announcements of 'efficiency' programs and leadership changes, with assurances that service quality will not be affected
“6 to 12 months months”
Staffing cuts begin, with increasing patient wait times and some service reductions
“12 to 24 months months”
Noticeable decline in test result turnaround times, more instances of errors or delays in diagnoses, and higher out-of-pocket costs for consumers
“24 to 36 months months”
Potential closure or scaling back of specialized testing services, further reductions in staffing and quality of care, and potential for significant patient safety issues or scandals
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Monitor for any changes in wait times, test result turnaround, or unexpected out-of-pocket costs when using Quest Diagnostics services
Be aware of any reduction or elimination of specialized testing services and consider alternative providers if necessary
Advocate for regulatory oversight and consumer protections to ensure diagnostic testing quality and affordability are maintained
Alternatives
Community-focused healthcare
Integrated managed care consortium