TETERBORO, NJ, and PITTSBURGH, PA, OCTOBER 7, 1998Quest
Diagnostics Incorporated (NYSE: DGX) and UPMC Health System (formerly known as University
of Pittsburgh Medical Center) announced today the establishment of a joint venture aimed
at providing greater access to laboratory services for physicians and patients throughout
the Greater Pittsburgh area, enhancing the electronic reporting of test results, promoting
technology innovation, improving laboratory efficiency and service, and optimizing
clinical pathology laboratory capacity in the region.
Quest Diagnostics and UPMC each have contributed components of their Pittsburgh-area
laboratory operations to establish the joint venture. It is one of the countrys
largest laboratory joint ventures combining the resources, experience, and expertise of a
for-profit clinical testing laboratory with those of a major academic medical center and
its integrated health care delivery system.
Equity ownership of the venture will be shared 51% by Quest Diagnostics and 49% by
UPMC. The board of managers will have equal representation. A joint medical leadership
team led by a Chief Medical Officer from the Department of Pathology of the University of
Pittsburgh School of Medicine will provide medical oversight for the venture.
"We are excited to formalize our relationship with UPMC Health System, which has a
world-renowned reputation for quality and cutting-edge innovation," said Kenneth W.
Freeman, chairman and chief executive officer of Quest Diagnostics. "This venture
positions us immediately as the regions leading laboratory provider of high quality,
low cost testing, with enhanced information and services setting the stage for future
profitable growth in the region."
UPMC hospitals, physicians, affiliates and particularly patients will benefit from the
expanded access, enhanced result reporting, consolidated infrastructure, and economies
that Quest Diagnostics enjoys as one of the countrys leading commercial providers of
diagnostic testing, information and services. Cost savings also will benefit other health
care providers throughout the region.
"The challenge in todays health care market is to achieve economies of scale
while maintaining high quality," stated Jeffrey Romoff, president of UPMC. "To
fulfill these goals in the important area of laboratory testing, UPMC is pleased to join
in this joint venture with Quest Diagnostics. The synergy created by combining the core
strengths of both of these organizations will make this the highest quality and most
comprehensive laboratory service in the region."
Under the venture, UPMC and Quest Diagnostics will pursue several opportunities for
technological innovation. These opportunities include information technology, best
practices in laboratory diagnostics, diagnostic centers of expertise, and new test
development, particularly in molecular diagnostics.
"Todays laboratories serve a dual missionmaintaining themselves at the
leading edge of scientific innovation while providing high quality services at the lowest
possible cost," said George Michalopoulos, M.D., Ph.D., Professor and Chairman of the
Department of Pathology at the University of Pittsburgh School of Medicine and
Pathologist-in-Chief of UPMC. "The first mission requires commitment to research and
development, while the second mission calls for organizational skills in networking with
multiple sites. The fusion of each partners capabilities into this venture will
benefit patient care for the entire community of Western Pennsylvania."
UPMC is an internationally recognized academic medical center. In response to the
economic changes occurring in the health care industry, UPMC has launched an aggressive
plan that will assure the survival of its research and educational mission in a
cost-conscious managed care market. Elements of this plan include the development of an
integrated network of hospitals throughout Western Pennsylvania; development of insurance
products and collaborative relationships with major carriers; development of collaborative
relationships with physician practitioners throughout the region; and development of
diversified services to provide ancillary health care services and foster mutually
beneficial business relationships with major corporations. Additional information can be
found on the Internet at: www.upmc.edu.
Quest Diagnostics is one of the nation's leading providers of diagnostic testing,
information and services to physicians, hospitals, patients, managed care organizations,
employers and government agencies. The wide variety of laboratory tests performed help
doctors, and hospitals diagnose, treat and monitor disease. Its Nichols Institute unit
conducts research, specializes in esoteric testing using genetic screening and other
advanced technologies, performs clinical studies testing, and manufactures and distributes
diagnostic test kits and instruments. Quest Informatics collects and analyzes laboratory,
pharmaceutical and other data to help large health care customers identify and monitor
patients who are at-risk for certain diseases. Additional company information can be found
on the Internet at: www.questdiagnostics.com.
The statements in this press release which are not historical facts or
information may be forward-looking statements. These forward-looking statements involve
risks and uncertainties that could cause the outcome to be materially different. Certain
of these risks and uncertainties are listed in the Quest Diagnostics Incorporated 1997
Form 10-K and subsequent filings.