DGX - Earnings call transcript Q1 2020 | Quest Diagnostics Incorporated

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Operator

Welcome to the Quest Diagnostics First Quarter 2020 Conference Call. At the request of the company, this call is being recorded. The entire contents of the call, including the presentation and question-and-answer session that will follow, are copyrighted property of Quest Diagnostics with all rights reserved. Any redistribution, retransmission or rebroadcast of this call in any form without the written consent of Quest Diagnostics is strictly prohibited.

I would now like to introduce Shawn Bevec, Vice President of Investor Relations for Quest Diagnostics. please. ahead Go

Shawn Bevec

good Rusckowski, and and on line the Guinan, Thank Chairman, morning. Chief Steve Officer. our Chief President; Executive with our you Financial I'm Officer Mark and

statements projected. affect this Actual differ and provide During results reconciliation measures the may measures non-GAAP Risks materially including comparable of may earnings tables we make to a we'll non-GAAP our and measures. call uncertainties discuss We GAAP in those to from forward-looking of press release. Quest on those and future in Report the but COVID-XX on not impact our quarterly Annual Form may are that the current reports include, Diagnostics' Form pandemic recent reports subsequently and filed XX-K results limited X-K. described XX-Q on to, Form most

references EPS amortization reported reported expense. refer to adjusted EPS References to refer for and excludes expense. income adjusted operating to all call, diluted excluding diluted to EPS periods to For EPS amortization references this adjusted

including with growth revenue Finally, are associated earnings growth growth acquisitions, revenue compound adjusted growth total growth, annual rates rates. our revenue and from outlook organic growth long-term projections

Now, Steve Rusckowski. here is

Steve Rusckowski

everyone thanks for us today. and Shawn, Thanks, joining

We with we the another. and all work The living engage extraordinary pandemic way has live, in are COVID-XX definitely changed one times.

impact to of and can lives be this. While -- through will likely highly we one thing the crisis continue in weeks certain ahead, the our months we will get

the it, results our mitigate in performance more forward. our crisis to on first the hit, going then role crisis the are the had position. discuss and before will this And morning, I in our quarter provide impact financial will So impact the actions detail the has Mark taking and we

adjusting more more a revenues two the quarter in calendar and first grew first the Through and weather X%. volume more Even revenues start favorable benefit in strong X%. grew grew year, Total February after than organic the X%. January year-to-date, than of performance was in off months for February. the financial to total than Our

and in distancing the and the social of volumes to declines However, shelter-in-place last COVID-XX in measures business. a we quarter, began two of of spread reduction our the combat March, of XX%. substantial instituted in excess we In see experienced were to weeks

We across to to markets, like not seeing as XX%. City. signs we In spots declines York New in impact volume just hot saw April, all at intensify are out declines that metropolitan XX% around the continue are bottoming volume

As played know, nation. a bringing role testing has Quest Diagnostics pivotal in COVID-XX to capacity you the

testing performed COVID-XX with launched we California. Advanced developed at our Diagnostic Since laboratory at Laboratory Capistrano, molecular tests, San Juan a

United million States. patients United and to results performed test approximately done testing and have of across reported of providers is X a the nearly We in the States. quarter all This

We've -- are tests continue who We and current limited with day. now laboratories. testing day a XX,XXX XX to also from provide able Through per less than more one backlog than COVID-XX hospital our time patients. turnaround laboratories days of perform two to for priority for these to one

protect us our supplies effort effectively We’ve great requires managing specimens for also has to team test runner have a of global output patients, chain. collect to collaboration. that employees. enabled by This has maximized our sufficient and deal supply This been the a

trade regular IVD possible all manufacturers, state And to testing as payers, Since and much our and associations happened American capacity local and the has bring with this government together March, with been contact we've as to closely people. at early We're federal in governments. retailers working the our levels.

they're whether who exhibiting virus, sites to for month. We've also may states first XX testing or our There to and sites joined at forces care workers as end the approximately anyone of to XX with out-of-pocket available as sites. sight the make currently in and well symptoms. operating symptoms through have be the all locations drive costs responders, Walmart by of approximately not We're these testing in of exhibiting X are line no health

testing country. and the government supporting state local also COVID-XX efforts We're across

Finally, COVID-XX a we playing we recognition role follow see increase to are to week. support COVID-XX pleased molecular other testing to see pandemic to high CMS vital is strong nation's This last of $XXX the for lead. decide to laboratories the response the CMS's to reimbursement are hope the and throughput payors

rates next be begun we've the we testing, useful of As understanding could in indication of phase virus, certain look the as improving a likely area, well which immunity perform an individual. as antibody infection to managing in to a our providing of for

based handful We're of as testing pilot initially a a to using health all the test customers nationwide hospitals available test testing a of in serology from is which variety making test. we of platforms. systems and Antibody known moving testing, a our blood also supported to

to so phlebotomists, lab masks, our face precautions equipment scientific shields, By our our we've to anticipate couriers, how ways. protect of use of colleagues circumstances. such staffs over very employees who our checks to procurement and through having all at and coats, to perform mid-May, this day. capacity specimen I'm tests, line Quest have up antibody tests many extra teams, teams, on stepped Quest our as taken at mandatory we are and with heroes our per quickly the depended new operations very proud require protective from front brought and And pilots labs gloves, up in our temperature processors. many XXX,XXX so medical There validated have

offset us substantial, of And we're so Americans to that is insights decisions are efforts delivers Our work These seeing managing rest to nearly testing to employees their the in critical pride while the many the the on is in our of to testing business. inspiring. enough is reductions it all improve care. volume because of depend make our testing take for pandemic. the of COVID-XX

managing long-term and business today its for assure the During this time, realities the difficult we're to health. of

it we have impact cannot precision. the [technical COVID-XX the will know in with our significant have pandemic do say we in our While What impact overall difficulty]. will business,

impact. to We are taking that actions mitigate

we taken temporary and of longer XXXX we provided full-year way end actions because no business our conserve we to our outlook cash, the manage confidence series of navigate And withdrew had support workforce to the the through our costs a in At to we pandemic. the and outlook January. in March, have

for for This depending weeks. pay Each level. of started will our ranging XX% cut senior salaried employees on X% and compensation. pay forego with These the for be of a reductions reductions members Directors for in their from XX% to me place XX% cash company's will Board the XX most executives of of

We've we’ve also overtime, hours through promotions; X,XXX furloughs to necessary. frozen and employees diminished where whose dismissed all hiring of We've approved approximately the for of indicated also our and remainder year. possible plans virtually us. our or interest workforce has and compensation have an deferred as then XX% suspended temporary more contract the than and work We've contributions to finally and employees, XXX(k) for And and reduced workers. reduced non-exempt

approach We're taking implement a difficult these measures. balanced to

ends, for will we've and all challenging We need those also to that to want need colleagues to more we'll our employee maintain us ever. recover the than This colleagues flexibility our in response because relief for established fund time assistance. an when and volumes a we of begin who crisis know is

changes these testing. will of ability COVID-XX deliver none impact to critical Importantly, our

law the on The country March, care other in COVID-XX early The this may a much Act of as benefits of a CARES how battle pandemic. The cover stimulus health request late included we evolve the needed and lab in of the to environment wake became industry and Act, CARES passage the M&A providers. topics. crisis. delivering few stimulus like package the the I'd thoughts Now, number some other

testing at nearly First, for the all COVID-XX Act no critical out-of-pocket for provided patients. coverage costs

Second, Act suspended for regarding PAMA, PAMA CARES had price scheduled cuts the been XXXX. the that

the identify better recommendations into time important first continue reflects way the the delayed has to the private to as as quarter of of intended. data rates of allows XXXX. it In Congress This data first study MedPAC year is new quarter ample addition, initially that use to the will a XXXX another the to data round collect of from collection been market and implement

or the providers revenues this $XXX care are $XX from billion Third, the to tranche to health for $XX approximately Quest that attributed earlier COVID-XX. expenses million lost month. initial the to appropriates of received distributed Act providers billion

will be afford us This small sequestration a benefit. will year. December this holiday May sequestration X-month from Medicare Finally, to suspended

environment, as well continue transaction turning Memorial to the with phase, as progress. a system. we make M&A Now, We're completed this its Hermann the to is very healthcare integration and complex pleased we relationship that prominent important an

the before transactions pipeline close announcing There we in crisis. to are other were that very the

that conviction transactions. While quarter third the will which position they strong discussions be very good complete will be on point resume, a will hold, to is that our are in and those at these

post some thoughts finally, then to And share on crisis. dynamics, I'd industry like

have their help challenges. that years. regional many been acquisitions. labs to expect how will Given many discussions had lab consolidation own the the challenges Quest can tuck-in for additional produce opportunities time, open drive we've If that several the same forecasting catalyst many achieve about strategy. we know an could crisis we smaller to and face, be any, for This we At hospitals be their to the could them

part Before I Quest this close, I team again of how historic say at I’m to time. the proud once just be want to

the to all making of employees stronger time Our way at collaborate, Quest nation of The in a brought us have team. and serve work up us challenges way the changing have together, every stepped this as need. during we closer

agile, and unified. more customer-focused become have We

will from with opportunities this emerge in We crisis of substantial front stronger us.

Now, will Mark, position. on you Mark? as over results through our our take I the turn who like to thoughts would well to it financial as

Mark Guinan

the Revenues the for consolidated quarter, versus services first year. the were compared down In Steve. X.X% year. $X.XX diagnostic prior prior X.X% billion, Thanks, information revenues to declined

earlier, in experienced strong our number the a year. we of was decreased X.X% decline versus January in substantial but in measured Volume requisitions and noted Steve volumes As performance prior the February, March. by business

volumes acquisitions, Excluding X.X%. declined

the over the revenue was in performance April, some early describing growth saw business our year-to-date to a March moment X%, trends organic X.X%. February, Through do with we the and of of growth spend total on Before to COVID-XX strong of pandemic. just just revenue prior want volume I over

made calendar X.X%. growth progress in February leap a two included growth was year, XXXX for the you weather. as part in volume benefits nearly strong continued at Total the these XXXX. that Adjusting XXXX was months first as organic of winter indicating into in strong well through acquisitions, to due of X.X%, volume impact benefit the mild and Volume

As we several month, approach third measures started the declines were week business the we the in the first declines last see XX%. March, states of to by nearly into the of Stay-at-home single-digit across volume moved accelerated And through two started to weeks the week month. of XX%. volume implemented March, volume by to declines

running been So far benefit tests range. has the of include XX% to on X% at volume declines or molecular per XX,XXX in in approximately April, stabilized growth approximately the have that average day declines through we have testing, COVID-XX XX% indications volume These which April.

the Revenue XXX were per Unit year, declined pressure. points. headwinds This higher headwind than prior in amounted in quarter expectations. impact driven X.X% approximately slightly which of of line a more our the primarily with the PAMA, includes X% versus first prior requisition by to reimbursement price basis

Reported margin was of $XXX million to million of year. was million operating XX.X% a decline last income $XXX due year-over-year of XX.X% $XXX last of basis, to The declining X.X% On to in an or COVID-XX. revenues in revenues year. as operating XX.X% $XXX compared compared income result or of revenues March adjusted million was entirely or revenues or revenue operating

the growth by $X.XX $X.XX year. a the compared $X.XX operating driven margin year-ago. revenue was up was to previously. year-over-year and EPS $X.XX volume Note through last was that EPS Adjusted in strong primarily highlighted quarter to a meaningfully Reported compared February,

year. a $XXX first I'd in additional operations Cash the our million to access was discuss like and take financial moment million last versus position quarter to ability provided by capital. to $XXX our

March under of facility As There capacity borrowings on facility. consist no billion hand million credit of credit million facilities available These under we revolving outstanding under $X.X our of as borrowing senior available facilities. $XXX of existing these had unsecured of and our XX, $XXX receivables XX. under $XXX secured facilities cash and March were was credit available million

million million our credit under credit senior our under In unsecured borrowed April, secured we $XXX facility. facility revolving and $XXX receivables

secured base Our facility. covenants certain facility respect the financial under receivables secure the to to borrowing the with borrowings is comprise the receivables and subject that

EBITDA us indebtedness. limitations as Our a the credit no day In more to certain last is X.Xx covenants subject of financial unsecured requires particular, to facility leverage credit revolving on fiscal facility revolving each maintain ratio the unsecured quarter. of to also of than

applicable March in with of we As XX, were compliance financial all covenants.

In as to The is ability to pandemic then second these outstanding. as any to demand payment lenders COVID-XX this be of these of able have borrow with would quarter. facilities early and the beginning likely the credit our right we amount against scenario, covenants, the not to impact end comply would

to We revolving of this for have We discussions provide been the XXXX. lead certain regarding credit flexibility our financial covenants of with lender in believe facility. compliance us amendment the remain in necessary an advanced would with unsecured our to remainder

discussions to quarter. investment we these and from with we enter in financing. provide into later to strong would If, we access for are us unable are amendment sources be able some will lead on that alternate amendment, into this Based the lender, support rating believe of reason our to the confident enter our we grade credit this

through release end this noted existing of our in the we Finally, earnings share as year suspending under our authorization. morning, repurchases repurchase the also are

quarterly of access committed company's at this capital Directors Board to ability and time. strong position our financial our believe we and the additional remain is dividend to summarize, To

of on the March uncertainty COVID-XX As unprecedented XXXX given our XX, many caused withdrew pandemic. guidance we by you know,

We appropriate measures improves the updated a when impact place expect States. across current around United in XXXX of to guidance the the time at provide stay-at-home duration COVID-XX more and visibility of

consider I'd guidance you While to some for build to your today, models. share you like as we aren’t providing details

many you fixed our know, of is costs. of business one As high

estimate testing a modeled the the XX% XX% have quarter. will and the our term at scenarios point different near We be is medium business number best to volume of COVID-XX this excluding for in second volumes that over down to

measures improve or to our we than Once a year. the where we level passes COVID-XX but lift, believe lower slowly stay-at-home to will XXXX crisis volume the started in and mitigates begin

the enable have we lower steps affecting at a utilization taken in to a these shared several steps, us highly incur we will assumption. profit conditions cost first While net we is reduction it the to generate April throughout quarter, lab volume this on not X-K which XX, continue an sufficient loss. are likely second If

across to Molecular of COVID-XX volume the serve experiencing the we're the testing does business. declines as partial a offset rest

We molecular future. foreseeable expect demand second the throughout testing quarter COVID-XX that the likely for remain will and high

reimbursement still uncertainty addition testing. testing, of In the us. impact lab another potential front We to serology believe there's of but volume and utilization in around the trends, serology unknown customer significant are in in is health care demand

I will back it Steve? turn to Steve. now

Steve Rusckowski

two a very decline weeks To were performance, material January but summarize, we in March. with pleased of saw and February last

and actions company our We are managing taking protect are of the for financial long-term the a to series flexibility.

the role of will to the to tip spear the responding has at crisis, COVID-XX. the containing Quest been in phase in and continue we play critical of a next

there's front and will in near-term, significant the look in of emerge front us. Eventually, crisis Quest to While start system conditions forward the that to we to gradual when with will the improving opportunities happens, in see return normal stronger of healthcare us. uncertainty from the we

be have. we'd Now, any to you happy questions take Operator?

Operator

Hynes Thank with from you. Ann question Our [Operator comes Mizuho Instructions] first Securities.

Your line open. is

Steve Rusckowski

morning, Good Ann.

Ann Hynes

Good morning.

It's been through I crisis. this First, Quest to to you nice all the commend working and employees want see.

Steve Rusckowski

that. Appreciate

Ann Hynes

focused testing. antibody are questions my But on

Steve Rusckowski

Sure.

Ann Hynes

What for to systems, would governments, know Thanks. go I'm over And working be by U.S. the to work? higher. or a the doing this it like serology do is whether be how the the capacity share? is assume go you we capacity what go back-to-school back to to a of XXX,XXX. maybe vaccine then market more you test, employees, said mid-May things assuming Should tested some time? that will grab ultimate it's peak view in that school should Quest like get opportunity? at Are with think could great. some point about or do everyone test, maybe could be Because -- you what And you this daily secondly, your I be will we think your serology

Steve Rusckowski

right, All All right. Yes. Ann.

around testing all testing. and So antibody serology

in up read So facilities that did so our on as our limited two customers, for and did that laboratory yesterday, individuals. we serology testing. LDT brought you a first We broad press our And limited developed week of implementation EUROIMMUN of the release we ago, hospitals platform. or and risk launched our we at actually tests

So with we experience it. had some

the That's of million to week. and first platform, about our we week, app per bring few bring per have and announced us allow is up of mid-May. then an second, last platforms will -- will will as platform in platform, into that sites hours our other We've is which that days that get night, And up that course many will quickly. April And then seven a in run day. XXX,XXX up tests number a by brought we XX And we May. we a X.X to day we

million month. can And X so per you about think

stopping in not capacity to your us. of we're questions, Now, We've more there. answer got front

dependent manufacturers that we capacity the coming with We need. the on IVD always the though out are of reagents

the from but the factor of has to the somewhat reagents have limiting lab our where capacity, less do we more with related and us to So chain supply suppliers.

well. with as So working them we're

So in that's say we'll what we're the month willing of May. have to

Now, guidance how this you have it an certain we infected, It's the is have a believe response. of important a good it days of press one FDA, from infected might the What have not past. have And those indication been last we been things, broad a asymptomatic. the do to being see is days person in antibody. measurement XX the in can is and the made the therefore, after you that obviously and That's number several been release -- and announced individuals IGG tested be? would while after best are that

another or That's good one. the a rate it's So number within population. within indication of geography infection

more And vast confirm in is this what The it. need that to viruses. is of press of of Point may there have on our we more the two some we believe for with is need evidence. period we but do upon immunity why need we This based evidence immunity be release have We study. to that that's had majority we conditions period number time. and to why other time, of past the to have this need viruses a for

tremendous So forward. you for happening it molecular the of This with infrastructure the we has would combining have state is with said, share be then both serology broad testing. with is testing in continuation going I And second that level interest at to needs. that done

California. excuse You announcement to by members the -- might start going test of state within new have a California. asymptomatic They're citizens seen me, to

Second is employers.

We have wellness to work used with we we business, this our programs. work we for leverage return with in business, in employers population employer And call Wellness actually called leveraged and where our have now capability health to we which our product with Blueprint their that building those on relationships employers.

working cities a that's communities, because industry. programs geographies, with nice you a and towns and constraints think It to so by of work great And their within a us what an and shelter-in-place with with is employers. point. giving food local engagements or processor, those are you're the manufacturer happen variation, return and you're as deal And around to there and environment those their so if employers office vary the And you're schools. are leverage number have in happening a a work states going and what's if that's or needs on if to we about they plants, have return with working wide matters

-- forces what at now to next of testing. the we with the working task mounted Many states finally, to have with needs are then look states. test And happen

has California conversations. out of right in a We to those expand now of I do middle from from the states. of made We're broader a all what number this they testing. coming announcement As said, see to want

Connecticut, the expanding the In partners, of of Governor and proactively with we our did HealthCare with Lamont fact of governor in Hartford I of one testing in state yesterday, work where Connecticut. Connecticut, conference press a

overall there's So testing, or for we then said, out opportunities antibody front in, opportunities the returning population has as both done as with And well surveillance testing you, for the for rule in to serology see Mark COVID-XX. which to and substantial within of us to molecular work. a coupled be rule

us. opportunity good front of in a So

Ann Hynes

Thanks. right. All

Steve Rusckowski

Ann. you, Thank

Operator

you. Thank

comes Our Giacobbe Ralph next Citi. question with from

Your line is open.

Steve Rusckowski

Hey, Ralph.

Ralph Giacobbe

for Thanks all detail. the Hey, Thanks. good morning.

you do to offset ex first be you all-in the just that So it's or sort of type is any you decline? inclusive COVID-XX, that XX% volume to is to can minus so minus And Thanks. helpful I enough mentioned of that guess clarify loss an want as the XX% there well. how would us with loss? COVID, give profit commentary think of that sense it margin about profitability then decremental revenue If number

Steve Rusckowski

Yes, Mark.

Mark Guinan

Sure, Steve.

a continue around Ralph, net around statement of XX%. inclusive to down be would the XX% So, to testing COVID be loss volume

is does what serology. that Now, include not

in up etcetera. entities, in my prepared said and Steve I conversations some that remarks, are we're potential well, a as for late things of demand the stage by So explained either for just the lot around encouraged -- or employers, a testing the stepping mid-term government

about We we haven't would Obviously, launched performing to serology, just that we serology wanted way any been so in forecasting cautious be. test. be how meaningful

But about, based be it could things we've on talked significant. the all

for don't I yet, where hopefully the also soon. comes rates out. on be largely CMS think commercial the We know trigger fairly reimbursement rate based but will And

all we're on waiting So that.

that largely high our averaging if our net and cost X% costs as not we money, at adjustment as fixed a And already perspective, answer and to in to but can that. it are comment we on of upside to we obviously, cost to some the reduced of where day. level XX% significant the through optimize about drop next our through margin fixed hours twelve on serology perspective, weeks. salary losing counted from because the but offsetting after reductions a this of does tests testing through if those loss, for We're we've furloughs, it that, then much the about structure XX% a some include happens It's we're current XX,XXX PCR we contemplate would said loss point quarter. from So

a worse. sort of So at any would changes to be get therefore high things ratio, likely were volume very if

that weeks. the stability created some most out signs we are geographies in impacted couple believe of some said, we As some last were There's not we've areas equal. all because of seen the bottomed because encouraging over we've

a at So, seeing we and quarter the some wanted what we're bit. what not know what of conservative, we is we for are today. point, those wanted That speculation. to you be we to on we on know therefore bouncing today. the back is to based But this wanted little And cautious, based tell outlook be

Ralph Giacobbe

Helpful. Okay. Thank you.

Operator

Thank you.

next Kevin with question Our comes from Caliendo UBS.

Your line is open.

Steve Rusckowski

Hi.

Kevin Caliendo

Hi. A call. you Invigorate of for place thing of Good think long like plans built guess time. taking model. one here. a all bit Thanks. How a long, the the morning. Thanks have savings, lot my cost of net But guessing … do on little Invigorate, had that about is into to kind we I'm on had I for in focus about to part we'd growth think you the that and cost that we that originally side,

Steve Rusckowski

Yes, yes.

Kevin Caliendo

… out here. thrown

Steve Rusckowski

Sure, sure.

then Mark start, to I’m me sure, let will So it. add

all, excellence we a Invigorate strategies and of drive to cadence two is of look that First continues. to that basis program operational of have our That's and and we for cost for our regular continue portion of a years. X% is our efficiency that one

So hasn't changed. that

those flagship that about those I'll change. the work process to allow allow some Laboratory some the in plans And talk us plans our project to in continue Clifton we immunoassay one put past, of talked new to in say, continues. to might new is because regard, what we're platform in we we of But platforms, the So refreshing consolidate programs. about that that us will the the that of footprint on programs our

the of in some. New state construction instance, might for So, Jersey slip

might those So some change. of

of is And a within be some then magnitude the because around terms of volume secondly, dependent. expectations might in of given lower it year costs some

some they'll of even volume we're is terms lower this be in percentages at given However, if fixed. levels, percentage, higher of

refreshing number cost the stands. perspective, goal an but X% our year in we the But provided we're the of X% our past. beyond getting least haven't at for absolute So a of basis still

to to it? would Mark, So, you like add

Mark Guinan

whether the think of I it whether lab Steve it's patient it's a summarized around volume related well. our labor, draws whether it's we're A throughput, doing Yes, service is Invigorate activities, centers. our lot in

the So be any implement opportunities, cost will efficiency will but continue of we sort as of savings, certainly some proportional. they improvement

always expect dollars billion dollar volumes, So you Obviously savings. base goes cost less. a cost talked We lower on plus be will lower down, base. X% obviously $X the if can about given the

The other of our add are, programs would thing of I normal that efficiency design level testing. is the lot a along

efficiently given and when you a more volume is that some places line, on lose half given your So it as operate than assays. difficult even to

the efficiency things So flexibility on. so reagents and around like operational, other things and labor

be cancer So going to to and while not business we to some some this offset continue don't point, program because there obviously extent. is lost even of volume I low we we're our efficiencies, our at be that at level We're to Invigorate this go expect very more to and back that temporary rescale fully though to caution considering prior at cancer the some doesn't away. have to we level we all I very, do down, significantly. much work to come some back at were our point is to of mean, COVID. screening We significant testing. some back point know because we'll We be

lower because be levels. the at So, be inherent It will will offsets efficiencies proportional. these volume Invigorate will There continue. of some

Kevin Caliendo

might or you now testing hadn't to again see in sort considered in seeing starting that that ask the now in you're maybe If seeing and When a the increase stabilized, March where quick basically I baseline incremental volumes. are say you might follow-up be seen that you chronic a can are on need done -- things to you tests April? these have of be are an you that other

Steve Rusckowski

want to that? you take Mark,

Steve Rusckowski

Yes.

not it turned volume We So stabilize. said has around.

franchises, say what led in closed not that, So very whether of when differences what asked for significantly clinical down I acuteness out, screening some of situations. acute except to out or offices are testing children, pick there's go about extreme necessity the would depending areas things you call cancer we and But them our are and being etcetera, is because in the we physician we're are there's March necessary going told that condition of absolutely just worked like testing. people the now important the people seeing up, adjustments and and on across and uncomfortable

absolutely difference to we you some more than more it's much testing while back type venue levels and testing XX% can't discretionary seen the come than So that. yet. of some some that tell less XX%, I across dramatically how see down, we've

Kevin Caliendo

all Guys, help thanks on so for this. much your

Operator

Thank you.

of question next Barclays. Jack Meehan from comes Our

Your is line open.

Steve Rusckowski

Jack. morning, Good

Jack Meehan

Yes. doing well. Good you are morning. Hope guys

Steve Rusckowski

doing we're well. Yes,

Jack Meehan

on don't They're mind, I a COVID you have three parter … If all testing.

Steve Rusckowski

write me down, it Let Jack.

Jack Meehan

Okay.

expansion. is do higher out? is payers scale testing? going think plan the fold finally, commercial then the all stimulus with do impact you of think to net, this further The to year, half up it for you this Medicare together shake down, first Thanks. just think you where you be night call one core follow The last to package a you much price? persists? as volumes testing net, if do to look could as the positive will seem further the you And how reimbursement Do the second Second,

Steve Rusckowski

Yes.

start. let So me

we that up don't working leverage all companies will really the rate answer encouraged be. We're insurance -- but on have the insurance encouraged their reimbursements, rate companies. commercial that's working what on by -- currently and we're an were And So that, approaching usually gives went that us an current indication CMS with CMS we commercial upping to the $XXX. on

that. come more to on So

said, significant a opportunity. reimbursement said, we serology, Mark important for do would fact have as That's which Second, not be, we rate for us for an to a establish testing. still CMS as the serology

As scale, the equally of we trying serology units. asked think more are mentioned White more going We're is comments, be task get side. will capacity We're to far my molecular on force do our how platforms, to creatively side, get existing of new can additional so the done on capacity gains some to expand forward. up what and have House bringing different some And that approaches I actually looking for as And we been our by from capacity driving we we the far. we platforms. have can what productivity in beyond

we're thinking way our So through that.

say at plans this But XX,XXX right place molecular. bring per we but that now that's As and I of pursuing it. that we're number. said, us get trying We're point, aggressively can for we're to nothing tests at north in day, to

deliberate last hopefully round by saw encouraged House of next out the what and come Senate funding. get the the are We night we we'll of and will

both of tests come this testing, And do it continue to the depended as to in on portion because to will we happening, so some tests well us, And country. as the forward. need serology molecular testing that do going

the will encouraged push we hard with So progress us. yes, making, more more front to And of out. get we're in

back end. am have on And serology chain, said capacity I about look the at end as supply and we earlier, whole I the front the question the to asked when

not of lab in So, swabs issues excess But a the on had one in We the supplies, a excess shipped have yes, we the have swabs molecular of resulted side having places. million haven't the of actually we out is in right we million. capacity. and the

well. increase inventory So we end, our capacity us have manufacturers the sitting some IVD as very reagents the providing be also out on upon with back o to And the kits able and there. dependent it's

getting up trying from the them. with help working their a help can rolled we're the tell House, we're there. And and to force, So you, from White everyone more is task sleeves states, out capacity get the lot of I

will what be comfortable I there but what to say. we we’ve far, so to feel So Mark, you far like that? add would is said so more coming,

Mark Guinan

Yes.

things. a Let me add couple of

in Jack, but and test for which proportion, reimbursement commercial So, for the national payers large the was not based practice, was or Medicare and was it's the CMS and above a regional at or rate certainly without of the the payers, rate. exception on subset industry almost obviously with PCR the all

that confident I'm well. going to therefore, we're do So

CMS this updated price. you has As know,

all from advanced and the payers in it's will CMS the higher and recognize commercial will if rates company, probable think discussions the that not change. rate are our I commercial very most, We

So I'm optimistic there.

out, do In the -- none of going this we half to is year, terms second of of know the said, We you how can careful. us but we're very math. as the play

about normal And us. serology day, given you yet, will an XXX,XXX capacity our XX,XXX combined, for to daily half any almost the that PCR day average don't requisition represent at the a hopeful testing be price fairly you those have we but of demand Steve a volume. talked way close if the price tests is meet So know know, we're for in today currently and serology the

value that is somewhat with will today. One And above a we revision. similar PCR the requisition our to the that rate be testing the of assume know that average CMS what would is

will how quickly see don't can recover, I then the it will level some of different that for be again, know second than could back testing, So, some and quarter. volume you half the the how core there publicly, is much is the very can demand you COVID-XX there the the do we're But all of if happen, year etcetera. and numbers as recovery hearing if high

Steve Rusckowski

requires do garb there And it's collection. difference. cases, remind care most And between which the cases the is protection molecular And just equipment. they're protected to of testing, everyone professional specimen many full clear in a health to hopefully in with personal a

people some created to different that we've a tested. getting on approaches So And bottleneck that. of worked

observed sites, As it collection where in fact, professional. it to from self we the of but health FDA is an a care a Walmart, approved we can matter person that be the have themselves, Walmart the have by actually but use the observed nasal kit swab has swab, where

collection the we need the to Walmart, that provide case the person observed as self nearly the the a the care window to do protective provides and and it's they all in worker But their of close what through before, they up, do they as aren't that confirm window. is drives The health happens parking those worker information actually information. in order care lots up health themselves what

of we're the proven at that's side. looking to molecular on highly that ways collecting other be trend And So efficient.

we a how been the get bit too that we're specimens. on So that a has little of improving bottleneck and

based. blood is serology Remember,

infrastructure. And so all it leverages our

know X,XXX have XX,XXX X,XXX so we as service And you we centers, have patient physicians' phlebotomists, have we offices. and phlebotomists

onto in as And delivery a care that health health care tag from us light nice specimens this to coming starts to be collect system so might opportunity quickly and orders that those those other the starts when orders on. potentially up, provides to turn

about and been simpler exceptional has so end more serology think you have, much the and when pervasive being about the far. not you everything molecular test think like much leveraging already front So and

Operator

you. Thank

Ricky comes Our from next question Goldwasser Morgan Stanley. from

is line open. Your

Steve Rusckowski

Ricky. morning, Good

Ricky Goldwasser

question helpful next. very thank My over it's Yes. you about last year and much we that update Obviously, four for the you've providing as weeks. is all think another and And the the about unemployment. Good transparency. on morning. variable focused Very, very been this to think

So assumptions exposure to historically how think Medicaid. if relatively more incorporating And are first, into that we you you about. talked then Mark have your

is commercial so half there we're are Just relative unemployment And you if in we that's can or wanted from structural mix expect framing us -- some can do you margin higher see to year will a understand, the what of Medicaid? that something or to better seeing going Thank move as mean higher can to we that what's see give shift then -- sense you. pricing of XXXX? maybe you start the for could we relative second to

Steve Rusckowski

that? Mark, you want to start with

Mark Guinan

Yes.

commercial typically So, Medicaid lower than know, Ricky, priced is Currently digits. single lower our typically you Medicare, revenues, rates. low as Medicaid than priced are

year one they unemployment, years. about higher we've whether earlier we're of number in about where you about had potential the of we've continued Now talk cautious for in the to absolutely, that. when obviously were unemployment than amongst bounce thought volumes back the was that reasons many And the

think look to have this frankly, is we recognizing there the forward, that, And try the others historically do happen what are other time, year. to I'm are balance sure we try if so, as potential some might about predict you differences. dynamic the therefore notable going that we to of obviously quite and And

safety their One for does jobs. the Act Affordable more Care those is who of of a them lose provide net

a that's positive. So

difficult have But might people and become the to thing that is, utilization. to which model predict do other speed given and magnitude at the what really the unemployed, it's

collectability, We not physicians. from very of systems, are patients, but just hospital from from cognizant being

So of we're And receivables collectability everything on monitoring forward, on. very, rates. and we our collection given likely going are that's very revenue headwinds anticipating closely our going

the where our getting or they that's significantly, assume months more would in certainly in utilization not from the slowly that our deductible on people last radar. of past. is, basis to that other one be revenues patients greater their -- may But might through dynamic dropped the be given because portion relative and So calendar will a couple have has of coming

these impacted, it So we've not we all to the will looked be there's a to this bad used actually headwind. of to But is things in but means. what our of did mean, recession, a that what can we point model it say historically no materially last obviously higher and be not significant rate I at collectability have was Utilization debt. did decline. rate exactly

all Now it's that the possibility. likely dynamics think mostly But given concessions. time, a we this patient that's

net through in However, Act Care safety the Medicaid you the do of have of expansion many states. Affordable

me we're those impacts, be trends all we're but put see how all can't And pieces together? transparent as understand So about that. as predict, seeing. we'll around what thinking those we I fully and trust as always, extremely we

Ricky Goldwasser

national the follow-up trying we're declines states the do at you look Whether And to kind to think start volume how Obviously, geographies? on have different to try Thank you in the see like. might differences to about of footprint you Understood. one any about side. -- look question think and volume you. just when we recovery

the differences versus in versus So northeast volumes the west? are the between you seeing south any

Steve Rusckowski

Yes.

franchise up why a have has Mark, earlier have built One, thinking at from quickly business come is multiple greater, back we've and some when care some our we So less. perspectives. by will how delivery model we system, declined up. about declined have, back variation have we're types business clinical on happened And to they looking there turning said health that of

So that's one.

what's hospital the we have happened and environment physician between is differences also do in Second environment.

state cities. to by what doors, start change well. And third, going they allow hospitals their by see back as that we is so And difference do happening are That what's will and change. in to in then a

as New have starting found, comments, tracked in later dropped. of some now we've light my we Lawson have so Coast. And we that. said than Obviously, have And New areas what York, introductory all come is like Jersey, the West areas of of those in and Florida to up, parts metropolitan all

to start things of might because trying all on. turn to doing when see also back So we're we're tracking and we're that that

some back So loosen to individual start coming up up to you work. and starting to the started states shelter-in-place see loosen to their of employers

talked And talked it's of we're clear. can to about bring our we want kind back we sure I We've costs capacity. watching about carefully, where so programs. our that need make so to We indicate furloughs.

where us program employees, and was had a grant from program Our we to it. offered they had to furlough requested but it we

stipend. a also And weekly bring them out to and the to them allows them furlough. back. CARES so it to but request, Act collect benefits It for to us But allows allows we unemployment to grant continue also apply

And them. have we need an obligation when to they back so come

that franchise back we So bring need what's as and back we it turn some we're the turn by back going see by will gone states capacity Ricky But start clinical watching to on, on. we carefully recovery to to start and understand these down when forward. state did to

Mark Guinan

mentioned, decreases area were whether early Maybe of the other late in on March metropolitan and every utilization while the that I'd the same is a impact to was then add into those April, some as thing shelter-in-place. Yes, shelter-in-place we extent regardless volume and greatest country in in we not the one seeing major certainly has significant of had declines. significant geographies,

whether not all being in cautious how being or the as areas urban so so and patients attention outside not, including or metropolitan given accepting going but in media patients and about the whether out and true they were were open the cautious, were and areas, are they physician offices, people not etcetera forth. staying We -- on were

is correlation depressing than that, there shelter-in-place has more been absolutely a utilization. while rules, with So it's that

Ricky Goldwasser

you. Thank

Shawn Bevec

getting limit towards a to question. there's of we're you, like bottom number most the so one queue. And get to hour Folks, and we'd of in people the please of still the to

Operator

you. Thank

Research. comes Wolfe Baxter Our with question from Steve next

is open. line Your

Steve Rusckowski

Hi, Steve.

Stephen Baxter

thanks information Thanks. testing guys. and a guys standup for you everything doing all Hey, thanks the are Hey, for capacity.

Steve Rusckowski

Appreciate it.

Stephen Baxter

appreciate I far. testing on color antibody the all the so

sizing their to yourself country guys could of how thinking when And obviously over could X you ramping year. well. demand the more than up next testing a scale others you about So Because XX% you are antibody up month, I'm the test run the wondering, tests guess, just you will if as I be those levels? million capacity capacity

the like sounds of that us be it over types and going York help could sampling picture this I in was Germany the think going is like seen from like see here, starting to So go where well bigger Thanks. might you think analysis hoping to sort pursue. City of time. you you places we've New this above

Steve Rusckowski

XX% in out Yes, tests. press of a done the certain said that well, million to better Obviously, House to higher start We're come we've with, if of at in their we percentages, a numbers presence. White total the look you we over briefings, percentage close country's states that grew have the broader testing. up

testing up a have And at some ramping are big look really where in just bigger If that's in we big their way. really up light to a states a they way. Florida, presence just started

get. it pickup by front of on serological be quickly how we We're encouraged how our the to will have that lot capacity reagents equipment as respond waiting there enough But a we will of will what the the are kind ramp up be capacity testing we we we're see from it. the of be. physicians and upon and ramp to building us, far And fast see. As opportunity and just does in highly to depended opportunity again,

So we what if we're we are on we but limited have, hopeful very can there's more, build that. by

testing of ran. it one should categories virus see as on our to quickly So keep it it, the we're going to how eye push respond the that and to done be two

will So updated keep learn as more. we you we

Stephen Baxter

of routine types there do Is of or anticipate coming sort panels, in That’s an kind these for add test? for typical me. that's it to people of you something be your exclusively on Thank you. going to

Steve Rusckowski

those, And both. back there's the are both think trying the shots because do, were these for but the I antibody Blueprint understand as test corporate we variation sponsored they'll employers, for different we there's corporate where the might say your for Wellness we're types like we specimen And quickly now working can I will for events of would particularly tests, bring test And we how they antibody the employers do as earlier, them employees in with or virus mentioned I test flu venues employees. where many also and to draw in they molecular employee tests. with programs program. events can employers to -- wide

that hospitals And physicians of already programs. ramping have those these will testing up than we corporate we quite different be So today. capability with doing traditional that way the of have or

Stephen Baxter

All you. right. Thank

Operator

you. Thank

Our next Bank question of America. comes de from of Bruin Derik

Your line open. is

Steve Rusckowski

Derik. Hi,

Unidentified Analyst

the you COVID for few for question past taking comments and for the helpful. It's you Ivy and the This in all Derik weeks. very is so Hi. thank far today. updates Thank

across talk to and here about term wanted I So longer COVID. looking

on on the and demand? two COVID change change consolidation. your routing the lab delays future and does does testing One, parter. wellness view thought And So PAMA your two, COVID

with So hospital levels? on with here? more wanted this difficult Just your those change get thought conversations that to there C to be could have

Steve Rusckowski

it you Mark, pick had the start the a Mark, you time first hearing hard I first up? one, question. did

Mark Guinan

Go ahead.

If repeating, you mind you wouldn’t talked wellness. about future

Unidentified Analyst

Right.

wellness So routine thought that's the your COVID-XX testing changed and future on demand.

may in with other preexisting that drive or people crisis a routine post from words, given is conditions higher at COVID more there be of are does and downside more the one disruptions. risk So that virus the testing, from

Mark Guinan

Yes.

my we've would direction. then and our it's don't important Obviously, to to risks We deferring have that and crystal could that COVID it expressed whether go to and potentially was So to be obviously asking, it really health find because one, either in of whether that with way point for Steve conditions tightly on got for comment get we're of before want remarks more all that one could might those like wants done where to hope well-being. anything around predict. it what important, is a your regardless manage I’m pre-existing to or And back riskier COVID I else. say, more we're if at of and even than sure, be not sort that it. with point differently. answers, that. predict testing it I we my better any means that's a diagnostic very one concern And that's you're critical some ball hard prepared just that anybody we familiar can't much bounces certainly

all lab we on other consolidation. unclear. But through as the this playing all was as together, possible highly around learned out. that how progressed Steve, PAMA understand as we that one we as that's and transparent said, will can is so much what So we're we be Then, seeing you

Steve Rusckowski

Yes. We see an opportunity.

about market, So are an if within healthcare what's down. you we're that the provider think volumes happening indication

on have missions. You data possible the all

You have visits. data physician on

in You being our volumes down. see it reflected

reduce all hospital And going employed more as are are so their and hospitals cost, at they to physicians And we looking this as by systems now we'll XX% cash. know, opportunities to of be generate quarter. struggling become some enter efficient, be

more to we've years about active become their more because with And to is consolidation those an half us continue the dialogues they year, of be in strategy some think likely Quest believe strategy. for lab had for there's systems a ways it creative now work on these there maybe we and can the opportunity so like more back now our that could of company

catalysts also could especially for it for that worsened you as opportunities have think be another this laboratories. we also consolidation. And a fragmented consolidate. other And regional, So know, to other might industry. is us There's

of the to to consolidating wanted this good the long-term, growth another we it's could opportunity So what the do said a is we we And the us short-term, for continue but our yet opportunity mid to believe it long-term be do. and think we’ve our accelerating to in difficult, in in marketplace. strategy

Shawn Bevec

Operator, question. next

Operator

you. Thank

Our comes William next with Larew question from Blair. Matt

open. is line Your

Steve Rusckowski

Hey, Matt.

Matt Larew

pacing I I quarters of beginning about then Thanks fitting component for A of of recovery non-emergent care in start May. getting number to we to guidelines how of you how you’ve to just terms are targeted give alluded back kind doing? you up. this are and as here. isn't second anticipate a you're in states third what think and offices Hey, me Could not up the Thanks. the about starts might to, at through the wanted to those down opened of open the states and necessarily that ask sort focused quarter that the up of for entirely the mentioned as thinking of have look up second on opened A testing elective which opening care, of May week administrations non-COVID and some some for and sense return. you quarter. some like Mark, physician months XX% XX% But maybe that in

Mark Guinan

Yes.

are we said, to speculate, it shows predict. too as So because going I to not hard

sure improvement back view some not absolutely there's think aware to material any that from happen, people the we bouncing yes, We're appropriate in know of potential potential downside. to we now. but quarter, assuming some of where for it that's take the So, volume is point make for of are not the because order won't because

We built in significant those and lot We of any we've also a potential serology to extent. don't heard what fairly assumptions. ramping today And haven't know quickly. discussion that demand up volumes around into

know So testing does want to to is or our stay I testing. you to in Steve, don't much net operating and too have serology I around PCR potential anyone anything, if it we for where upwards it loss. XX% quarter precision don't significant But down this that. want XX% don't get a, and that's the significant we if to assume add

Steve Rusckowski

of to of is lot said have think a from that And said add offices lot I delayed. Mark demand up is just a what earlier. pent canceled, and patients. I been going There be been physician I'll postponed there's

by they When will to that system. we And will and to state. city back so the vary be, by come start will

that. we're I And comments said in all what so the that's earlier tracking

So see those one those you systems There'll as in to to those could start also later in some think patients bring recovery. well. offices physicians' be want back hospital in the quarter

customers when thinking going up about open turn their a or hours, to with offices of our their So perspective they survey do extended we're to on back they're offices get what workdays. a extended of actually

summer. and same are be be I August that think won't summer July vacation the the people now won't period. the heavy thinking

give much early watching all we're more anything much too our an for But too it uncertainty But we we're eye, you keeping than it closely. on as us around said, So and Mark that. to provided. eyes too

Shawn Bevec

Operator, next question.

Operator

Thank you.

with Hooker question Donald comes next Our from KeyBanc.

open. is line Your

Steve Rusckowski

Don. Hi,

Donald Hooker

morning. Good Great. Great.

So out acquisition. I in very diagnostics. called your the last was of interesting you quarter, that around a expenses And advanced think some associated significant with part

going a think kind think as to that of tailwind nice It Is was to me. you're something we being little XXXX. about thinking and discretionary I that going sounds for forward. pursue a to Blueprint a that's continue

Steve Rusckowski

absolutely. Yes,

Our growth strategy continues. to accelerate

capability going nice all about lot us The was good in the is advanced One a is we company do diagnostics coming our into crisis feel that platform. of this early integration that strategies The that we a year not Again, There's And of a to We of build genetic those plans to did continue Quest base acquisition given for have. acquisition. complete Diagnostics. change platform and that's well. genetics molecular. opportunities our with front testing. that step

Shawn Bevec

Operator, next question.

Operator

next JPMorgan. Gill comes Our from question Lisa with

open. is line Your

Lisa Gill

very Good morning. Thanks much. Hi.

Steve Rusckowski

Lisa. morning, good Hey,

Mark Guinan

Good morning.

Lisa Gill

And Steve, I'm your everyone. in just curious about around changes to the impact forward. comments you and morning, talked your lab prepared thoughts on going Good the industry. telemedicine

have you coming how they'll then anticipate in be Do your preferred center? the offices patient you plays open that providers Telehealth point at forward. more that just every your to think see Telehealth trend fact some see that relationship? physicians telemedicine talked system, I So you'll today clearly, point as going we'll we're about that has again, to How into any hospital home services etcetera. you start think about relationships physician that curious, going to going the large with own your I'm to and see services But Quest do you think forward? to more

Steve Rusckowski

Yes.

all many So, been platforms we as we’ve and this the models with in providers know. Telehealth working different

type with another and provision. another there some those established you this see models burned of crisis that And will, comfort some has some capability So we do as or if as of care credibility health patients. and channel,

engagements, be become be the connectivity testing when we’ve back we you of And have we Diagnostics. And larger volume. those workflow the our or had your follows it to to the so for the a of it we the going believe the primary percentage and the you do connect they primary then And And call they within in platforms, use EMR that have therefore, testing. on an care engagements, upon have telemedicine to depending would is to probably model physician the care that many in Quest will do used physician. have those then order adjunct

opportunity. good So

good We strong are have many with with a new relationships and and actually startups what end new some There's capabilities, very COVID-XX, and are ventures been capabilities of with. coming big always of of We have of which aware up we're run been the well triage new of Telehealth small. platforms, front to prospecting which capabilities. has lot that -- you we're interesting, see relations

changing and is So brought crisis visibility to it this more has it.

with very going positioned well companies we a believe good opportunity for we're that's and us forward. those So

Shawn Bevec

question. next Operator,

Operator

question Our comes Suisse. next Credit from of Erin Wright

line open. Your is

Erin Wright

Great.

Steve Rusckowski

Erin. Hey,

Erin Wright

well. morning. Hi. Good everyone is Hope

COVID In can you some earned the that with goodwill there? you've overall and think Thanks. of recalculation terms the efforts of in of for lobbying the do that also light help rates response PAMA,

Steve Rusckowski

say, never America is And company story every joined What would I eight I'll hurt. the of page on media, in the I the that the this Yes. can't we but all forefront over over ago, Erin, are. be believed news front brought of it years when and to testing. importance This has crisis

to case reflects new need properly our place of in HSS value the for with get we to to the market get and So in it's with administration fairly Congress of a also the in put much making reinforce Congress, members of intent the for the us process to now reimbursed. rates. us sure easier testing And make that

So fact is actually us. a leverage to it good for very We're that. going

still that. the had is have sometime remarks. CARES Just to those the second year which remind we're And hopeful I prepared decision get going did then we'll And Act happening. the still on, on is everyone my this a in lawsuit timing. change we

Operator

Thank you.

from of Baird. question Eric comes next Coldwell Our

open. is Your line

Steve Rusckowski

Eric. Hey,

Eric Coldwell

-- thank much. you Thanks very hey,

the $XX CARES You in the remarks billion first prepared of mentioned $XX the from million distribution out Act.

$XXX short-term? million $XX XX new on support Just are through and at there a here $XXX couple so another billion Does plus with secondarily, getting testing came the impacts million activity market? anticipating the out, it's of questions from came assume any direct stimulus mean XX%, Quest the just in testing just you're of volume there that. million And to that for less. Are that billion of XX the impacts in just than any more stimulus? more that that other in

Steve Rusckowski

to Yes. million? you $XX do start want Mark, on the

Mark Guinan

Yes.

would unique $XX no created you money. There situation. of get So emergency relief. stipulations billion that how a was pot that money for of a They were

surprised, It up based In at proportional are billion. showed to our fact, divided billings we bank that Medicare account. up in probably was on it and $XX

had who So of billed portion Medicare anyone the that. a year got in prior

The cover emergency other to aspects parts that that, mirrors and relief else there's turn nothing getting running. some we of bill are, where Steve various billion. got I testing of fund the of but up that to $XX will for quite this

while there's the for utilize it's not as relief some that it's simple what as So fund. opportunities of as happened straightforward to not emergency funds, with us and other

Steve. So,

Steve Rusckowski

any of And it's underneath just will. And Yes. package debated I'll the approved in have say lot then was specificity don't clarity the we the you House. hood, just the going you Senate last to know, of night, that by as a if also, be

properly portion be resource we'll we expect we time tap them reimbursed a as of giving is for is I And that watching I country do. it the it the the large and would And have work we could we're that at and it. testing. the we for said, input leader any. So and portion back be America But a as of it's us, a resources some to -- as if for get and portion this turn are money paid on, refine will critical that but into what uncertain therefore, they

Shawn Bevec

question. last Operator,

Operator

comes Jefferies. Our of Tanquilut last question Brian from

open. Your line is

Steve Rusckowski

Brian. Hi,

Mark Guinan

Brian. morning, Good

Brian Tanquilut

and guys, for morning, thanks Good everything. again

the last really quickly. for just So just question,

guess to physicians. we So, and the -- But more updates the mind me some could you referral comments the all if hospitals as for pinpoint on give you or Steve, recovery, thanks and about don't and specialist your try your think And sources platform? it then across Thank of your Is where care is your test I are the primary my what just average is from? serology referrals on coming follow-up granularity you. the hospitals? reimbursement bulk then

Steve Rusckowski

Yes.

Of you like and coming scale crisis scale a drug employers, our businesses. hospitals. billion of and -- our of are from So a our before idea an the what is then insurance population of related a with give business was services again billion to our different To employer roughly health -- business, our give business our of business, it testing you business. just

And roughly the remainder driven. our okay? really was $X physician $X billion is physician is crisis billion driven, of before so So, --

we are referrals of where our very the vast important obviously because those majority get that's So volume.

Mark Guinan

well, shared dollar on Brian, never a we've testing, then amount. serology And

that probably and to case look at it the and You successful in weren't established first a for they default would saw We've initially. sufficient. you the don't made doubled can looked Obviously it association that rates. They some is they at -- of almost then rate we the think our we clear through CMS the crosswalk reconsidered, PCR, it. trade

-- with of that's its incur detail commensurate pretty case cost and get testing So that that COVID that rate perform to order going evidence more to in we're the serology, there's to serology in hopeful it. for we're a the we're the some compelling going

Shawn Bevec

remarks. closing Steve,

Steve Rusckowski

Sure. us got appreciate Glad we you your and Well, thanks continued everyone's great questions a day. everyone, have and support for joining today. we

Operator

phone at Eastern X, domestic XXXX-XXX-XXXX in this be be website the replay remarks Diagnostics of www.questdiagnostics.com/ for call later international A transcript XXX-XXX-XXXX XX on will www.questdiagnostics.com. or posted at Quest online of today at call. assessed for midnight by XX:XX April for first Time on Eastern until prepared XXXX. conference quarter or XXXX participating be will A Time Telephone available replays callers. May on the Quest callers approximately investor on call will A.M. you Goodbye. Thank Diagnostics the for

Quest Diagnostics (DGX) 22 Apr 202020 Q1 Earnings call transcript