N e w s f r o m Q u e s t D i a g n o s t i c s

W i n t e r 2 0 0 8 - 0 9HIGHLIGHTSHealth Plan

Taking Laboratory Spend ManagementServices to a higher levelCollaboration, technology, and real-time data drive accountabilityand physician complianceQuest Diagnostics has always been committed to reducing total lab spend for our health plan clients.In 2008, we set out to find even better ways to fulfill our commitment.

We sharpened our sales focus and execution through improved collaboration with health plan partnersand advanced technology. This enabled us to gather more detailed physician account informationand develop messaging for our field sales representatives. Our sales representatives utilize this messageto talk with physicians about “Why Quest?” As a result, we can now more rapidly convertphysicians from nonparticipating and nonpreferred laboratories to Quest Diagnostics, drivingsignificant lab spend reductions to the health plans. Further, insights gained from the physician calls can be reported back for further action.

Collaboration and technologyUncovering the physicians associated with our health plan clients who were not using Quest Diagnostics labs for our contracted health plan businesswas an important first step. We began collaborating closely with two of our larger clients to access real-time, physician-specific data from their databases.

Once we had data from the health plans, we needed an efficient way to get it to our field sales representatives. We unveiled the AcceleratingClient Transitions (ACT) territory management tool, an advanced, automated technology that feeds the health plans’ physician-specific data toour customer relationship solution.

ACT was pilot tested in Pennsylvania, Kansas, and parts of California. Field sales representatives retrieved health plan leads via the customerrelationship solution, planned their calls, and tracked progression from initial call to close.

Of the physician practices visited in the Los Angeles region, “45% indicated that they would begin referring to Quest Diagnostics the targetedhealth plan’s patients that they were sending to other labs,” says Mike Hughes, Sales Director. “This represents an estimated monthly savingsfor the health plans included in the program of $82,500, or almost $1 million after just a few weeks of the program.”

In the Kansas region, “We’ve converted 35 to 40 physicians so far,” says Melissa Meyers, Sales Director. “One key ingredient to our success wasteamwork. We shared data and collaborated with the health plans on targeted physician accounts.”

Enhanced sales force productivityUsing ACT with the customer relationship solution gives the Quest Diagnostics sales team a single source for lead information and allows betterretention and follow-through on accounts. “ACT enhances the productivity of our sales force, allows results tracking and creates better accountabilityto the health plans,” comments Brendan Kerrigan, Vice President of Health Plans.

Starting with accurate and actionable data from the health plans meant that Quest Diagnostics field representatives were better prepared andcould act more quickly.

“We received the right data for pre-call planning and formulating sales strategies,” says Hughes. “The two health plans provided very specificinformation about prospect activities.”

“We are willing to work closely with health plans to access the pertinent data. Sometimes we may need to be in the ‘data weeds’ with them to comeup with the right information,” notes Kerrigan.

Why Quest Diagnostics?Physicians need to know that their patients and practices are in good hands before transitioning from non-participating or non-preferredlaboratories to Quest Diagnostics. We have trained over 900 field sales representatives to help physicians understand the value that Quest Diagnosticsbrings to patient care and practice management.

Our field sales representatives articulate five key messages that differentiate Quest Diagnostics from competitors in their visits to noncompliantphysicians:

� Patient management � Office efficiency � Clinical excellence

� Patient experience � Practice economics

“When meeting with physicians, our sales reps focus on what is best for the patient and what is best for the physician practice,” says Meyers.

Hughes agrees and further explains, “Our reps position Quest Diagnostics as the favored and preferred lab for the two health plans, because ofthe active collaboration between Quest Diagnostics and the plans. Our reps also talk about solutions for physician practices such as our extensivetest menu, Six Sigma Quality, Care360 connectivity, and Patient Service Centers.”

Quest Diagnostics can help yourhealth plan improve patient care

and reduce lab spend

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HIGHLIGHTSHealth Plan

Positive experiences improve member complianceHealth plan members are busy people. At Quest Diagnostics we strive to make it as easy as possible for them towork with us by offering a menu of readily available services:

Nearby Patient Service Centers. Our 2,000 centers across the country are staffed by over 8,000professional phlebotomists who offer caring service with shorter wait times.

Quick and easy appointment scheduling.Members can access Automated Appointment Scheduling day ornight at www.QuestDiagnostics.com/appointment.

Email reminders to keep patients on track. Members can sign up to receive timely electronicreminders about scheduling important health tests or exams.

Lower out-of-pocket expenses. In today’s economy it’s smart for patients to use Quest Diagnostics, an in-net-work provider for many health plans, to pay lower coinsurance and deductible costs than those typicallypaid when laboratory services are performed by an out of network provider..

Clear, concise patient education materials.Monthly disease awareness newsletters, an online Patient Library,and our destination: HEALTH tool are among the online and printed resources available to help patientsget and stay healthy.

For more about our patient-centric services, visit www.QuestDiagnostics.com/patient.

ACT roll-out completedACT was launched nationwide on August 18, and system improvements are deployed on an ongoing basis.

Integrating ACT into the customer relationship solution enables Quest Diagnostics to bring the sales call process full circle and report back tothe health plans. “As we move forward with the program, we’re providing actionable insights back to the health plans. We’re reporting on oursuccesses and where we need their engagement to help drive results,” says Kerrigan.

He adds, “We are committed to lowering overall lab costs for health plans and providing quality lab results data to connect to the plans’ careconsideration systems. ACT further aligns our Lab Spend Management Services with our commitment.”

Interested in how Quest Diagnostics can help your health plan improve patient care and reduce lab spend? Contact your Quest Diagnosticsaccount executive to set up a strategic planning meeting.

QuestNet™ cuts the red tape for capitated laboratory servicesBetter control over capitated laboratory costs and increased member access are just two of the benefits for health plans that participate in theexclusive QuestNet™ program offered by Quest Diagnostics.

With the QuestNet Laboratory Management Service Program, a health plan gets the expertise of Quest Diagnostics to manage outpatientlaboratory spending, plus a fully automated system that is readily scalable to meet all plan needs.

Quest Diagnostics develops and manages for the health plan a customized network of laboratory service providers, including regional and localhospitals, hospital networks, private practice pathology groups, national and specialized commercial laboratories. QuestNet engages the healthplan throughout the contracting process to ensure that entities are aligned in the contracting strategies being employed by each targeted provider.

QuestNet offers patients, physicians and health care organizations:

� Convenient access to Patient Service Centers for specimen collection

� Choice of more laboratory providers within the QuestNet network.

� Ability to control costs for the health plan by curbing noncompliance

� Contract implementation throughout the network

� Physician and member communication and education programs

� Streamlined, HIPAA-compliant administrative processes that ensure claims accuracy and timely paymentdistribution to providers

� Quality management programs to measure program effectiveness

� Cost trending and predictive analysisVisit www.QuestDiagnostics.com/mco or contact your Quest Diagnostics account executive for more about QuestNet.

Quest, Quest Diagnostics, the associated logo and all associated Quest Diagnostics marks are the trademarks of Quest Diagnostics.© 2008 Quest Diagnostics Incorporated. All rights reserved. www.questdiagnostics.com 12/2008