The company acquired LifeLabs for approximately $1 billion, expanding its presence into Canada. This acquisition is expected to contribute to future revenue growth and market expansion.

The company completed several acquisitions during 2024, including Lenco Diagnostic Laboratories, PathAI Diagnostics, Allina Health's outreach laboratory services, three physician groups in New York, OhioHealth's outreach laboratory services and University Hospitals outreach laboratory services. These acquisitions are expected to contribute 1-2% revenue growth.

The Invigorate program aims to deliver 3% annual cost savings and productivity improvements. This program includes structured plans to improve productivity across the value chain.

The Invigorate program is designed to improve productivity and offset inflationary pressures. Management is focused on automation and AI to improve quality and efficiency.

The company is committed to using AI in an ethical, responsible, and compliant way, with a formal AI governance oversight committee and multiple safeguards.

The company, along with the Quest Diagnostics Foundation, launched an initiative to reduce health disparities, committing approximately $46 million to various programs.

The company acknowledges that the evolving healthcare system and changing market fundamentals could adversely impact the business if they fail to adapt.

The clinical testing business is highly competitive, and failure to provide an appropriately priced level of service or otherwise fail to compete effectively could have a material adverse effect on revenues and profitability.

Government payers, such as Medicare and Medicaid, have taken steps to reduce the utilization and reimbursement of healthcare services, including clinical testing services, which poses a risk to the company.

The company primarily competes with other commercial clinical laboratories, hospital-affiliated laboratories, and physician-office laboratories. Increased hospital acquisitions of physician practices may enhance clinician ties to hospital-affiliated laboratories and may strengthen their competitive position.

The company believes that providing the most attractive service offering in the industry, including the most comprehensive test menu, innovative test offerings, a positive customer experience, deep medical and scientific expertise, high quality, leading access and distribution, and data-powered integrated IT solutions provide them with a competitive advantage.

The diagnostic information services industry is faced with changing technology and new product introductions. Competitors may compete using advanced technology, including technology that enables more convenient or cost-effective testing.

The Invigorate program includes structured plans to drive savings and improve productivity across the value chain. The Invigorate program aims to deliver 3% annual cost savings and productivity improvements to partially offset pressures from the current inflationary environment.

The company is leveraging automation and AI to improve productivity and improve quality across the entire value chain, not just in the laboratory.

The company expects that standardization efforts will take several more years to complete and will result in significantly more centralized systems, improved operating efficiency, more positive customer experiences and enhanced control over the operational environment.

The company is a leading provider of innovation in diagnostic information services that help healthcare market participants care for their patients through better testing for predisposition, screening, monitoring, diagnosis, prognosis and treatment choices, and that can deliver high clinical value to the medical community and reduce the overall cost of healthcare.

The company develops and introduces new tests through its research and development operations. Its capabilities include discovery, technology development and clinical validation of diagnostic tests.

The company endeavors to improve test processes, including through increased automation. In addition, the company aims to develop holistic solutions responsive to challenges that healthcare providers and patients face, by developing solutions of tests, information and services focused on specific clinical challenges.

Acquisitions are part of the company's disciplined capital deployment framework, which also includes investment in its business, dividends and share repurchases and is grounded in maintaining an investment grade credit rating.

The company expects to return a majority of its free cash flow to stockholders through a combination of dividends and share repurchases.

In January 2025, the company announced that it increased its quarterly common stock cash dividend by approximately 6.7%, from $0.75 per common share to $0.80 per common share. This represents the 14th increase in the dividend since the beginning of 2012.

We focus on Culture, Talent and Community across the entire talent lifecycle and prioritize supporting all employees throughout their careers at Quest. We continue to prioritize our leadership training programs supporting early careerists, mid-career managers and senior executives.

The health and safety of our employees is of paramount concern. We use a systematic, risk-based approach to develop tailored incident prevention and response programs designed to keep our employees safe in each of our diverse functional areas and use data insights and a detailed audit program to foster the effectiveness of our programs.

We aim to harness the unique mix of capabilities, talents, cultures, beliefs and experience of our employees and create a workforce that feels comfortable sharing these perspectives.

Consolidation in the healthcare industry has continued, including among our customers. Certain of our customers are seeking to diversify their service offerings and to partner with other providers to offer value-based care alternatives.

Medical developments are creating new opportunities and new challenges while disrupting the healthcare environment. For example, digital pathology is a technology that the company is currently deploying that may change the practice of pathology.

There has been a trend toward greater pricing transparency in healthcare, including in the laboratory testing marketplace. Several states have taken action to foster greater pricing transparency in healthcare.