PHOENIX, JULY 9, 1997 — Samaritan Health System and Quest Diagnostics
Incorporated (NYSE:DGX) today announced they have formed a joint venture to pursue
opportunities in diagnostic testing, information and services throughout Arizona. The
venture will operate under the name of Sonora Quest Laboratories, LLC.
The joint venture will be comprised of the commercial laboratory component of
Samaritan's integrated laboratory company, Laboratory Sciences of Arizona, LLC, and
Quest Diagnostics of Arizona. Both entities currently operate clinical testing
laboratories in Arizona. Sonora Quest Laboratories will operate at its existing facilities
until operations can be consolidated at a new location. Site selection for the new
combined laboratory has begun and occupancy is expected to occur sometime in 1998. Earl C.
Buck, Chief Executive Officer of Laboratory Sciences of Arizona, will be Chief Executive
Officer of the joint venture. Judy Burgess, currently Vice President and General Manager
of Quest Diagnostics of Arizona, will become Chief Operating Officer of the joint venture.
"Arizona is one of the most competitive health care markets in the United States
with high managed care penetration and rapid development of integrated delivery
systems," said George Zara, Senior Vice President of Systems Services for Samaritan
Health System. "The combination of our operations will create efficiencies that will
allow Sonora Quest Laboratories to provide the best value in the marketplace. In addition,
the new company will offer enhanced service through a more convenient network of patient
service centers and couriers."
"We are linking with the winning integrated health care delivery network in the
region," said Kenneth W. Freeman, Chairman and Chief Executive Officer of Quest
Diagnostics. "This is an important milestone in our strategy to become the best
provider of diagnostic testing, information and services in Arizona. In addition, the
joint venture will provide rapid access to specialty testing performed locally or at Quest
Diagnostics' world famous Nichols Institute."
Samaritan Health System, Arizona's largest health care delivery system, includes
six acute care hospitals, two skilled nursing facilities and eight outpatient treatment
centers. HealthPartners of Arizona, a joint venture between Samaritan and HealthPartners
of Southern Arizona, is Arizona's second largest managed care health insurance
company, covering more than 425,000 lives in the state of Arizona.
Quest Diagnostics Incorporated is one of the world's leading providers of
diagnostic testing, information and services, with regional laboratories across the United
States. The wide variety of tests performed on human tissue and fluids help doctors and
hospitals diagnose, treat and monitor disease. In addition, Quest Diagnostics'
Nichols Institute conducts research, produces test kits and instruments, and specializes
in esoteric testing using genetic screening and other advanced technologies. Formerly
known as Corning Clinical Laboratories Inc., Quest Diagnostics was spun off to Corning
Incorporated stockholders in a tax-free distribution of shares on December 31, 1996. The
company, headquartered in Teterboro, NJ, had 1996 revenues of $1.6 billion.
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