Quest Diagnostics Reports Third Quarter 2017 Financial Results, Updates 2017 Financial Guidance and Reaffirms Long Term Outlook

SECAUCUS, N.J., Oct. 19, 2017

"We delivered another strong quarter of revenue growth in spite of weather challenges, completed two previously announced acquisitions, and agreed to purchase Shiel Medical Laboratory," said Steve Rusckowski, Chairman, President and CEO. "Yesterday we also announced a strategic relationship with Cleveland Clinic that includes the acquisition of Cleveland HeartLab.  Our two-point strategy of accelerating growth and driving operational excellence is producing results.  Our updated guidance for full year 2017 primarily reflects the impact of hurricanes in the third quarter which impacted geographies where we have a large presence as well as recently closed acquisitions."

In the third quarter the Centers for Medicare and Medicaid Services (CMS) published its draft Clinical Laboratory Fee Schedule for 2018 as mandated by the Protecting Access to Medicare Act (PAMA).

"We continue to urge CMS to delay the implementation of PAMA to take the time to get it right," said Mr. Rusckowski.  "The preliminary rates that CMS released are not "market based" rates as Congress intended.  Under the proposed fee schedule, less than 1% of all laboratories submitted data, and the vast majority of hospital and physician office laboratories were prohibited from reporting their rates, yet more than half of Medicare beneficiaries get their laboratory services in these settings.  Instead of protecting access to essential laboratory testing, this flawed approach could greatly compromise Medicare beneficiaries' access to testing.  Along with our trade association, we are exploring every option to ensure that Medicare beneficiaries have access to vital diagnostic information services."

Mr. Rusckowski continued, "In whatever form CMS might implement PAMA, we remain confident in our ability to meet the long-term commitments outlined at our 2016 Investor Day."