Impact Investing - Quest Diagnostics

3 min read 13 May 21

Leading provider of diagnostic information services 

Quest Diagnostics is a US-listed clinical laboratory, providing diagnostic services and solutions to aid better health and well-being. The company operates through two business: Diagnostic Information Services and Diagnostic Solutions. The Diagnostic Information Services business develops and delivers diagnostic testing information and services, providing insights that empower and enable a range of stakeholders, including patients, clinicians, hospitals, integrated delivery networks (IDNs), health plans, employers and accountable care organisations (ACOs). Its Diagnostic Solutions group includes its risk assessment services business, which offers solutions for insurers, and its healthcare information technology businesses, which offers solutions for healthcare providers.

Quest's diagnostic insights are derived from having the largest database of clinical lab results in the US, revealing new avenues to identify and treat disease, inspire healthy behaviours and improve healthcare management. The company has laboratories, patient service centres, offices and other facilities predominantly in locations across the United States, but also in Puerto Rico, Mexico, Brazil and India.

Quest was originally founded as a Metropolitan Pathology Laboratory in 1967, before undergoing a variety of name changes and ownership structures. At the end of 1996, it became an independent company, spinning off from multinational technology company Corning.

Since the turn of the century, Quest has been involved in a number of meaningful acquisitions and partnerships to extend the reach of its patient access. Notable collaborations have included retailers Safeway in 2016 and Walmart in 2017, bringing Quest’s testing services into their store locations. In May 2018, the company also announced it would become an in-network laboratory provider to UnitedHealthcare, providing access to 48 million plan members. 2018 also saw the company launch QuestDirect, a consumer initiated testing service, allowing patients to conveniently order lab testing from home. This naturally led to the launch of COVID-19 testing services – between March and July 2020, the company performed more than 9.2 million COVID-19 molecular tests and 2.8 million serology tests. Through diagnostics, Quest allows the detection of non-communicable diseases and is now the leading provider of diagnostic information services, serving about 50% of all hospitals in the US, with the aim of extending its reach further, from one-third of the US adult population to one-half, in the next three years. 

In Brief :

  • Nationality: US
  • United Nations Sustainable Development Primary Goal #3: Good health and well-being.
  • Largest low-cost diagnostic testing service provider in the US, with $16.7 billion market cap
  • Brand, scale and reach difficult to replicate in a fragmented market
  • The company’s vision is ‘empowering better health with diagnostic insights’ with a goal to ‘promote a healthier world’
  • Serves about 50% of hospitals in the US
  • Serves 30% of the US adult population and aims to reach 50% within three years 

While we support the UN SDGs, we are not associated with the UN and our funds are not endorsed by them.

All company data sourced from Quest Diagnostics. Figures shown were latest available from company literature, as at January 2021.

M&G (Lux) Positive Impact Fund invests in Quest Diagnostics.

If you want to know more about M&G (Lux) Positive Impact Fund please visit the fund page.

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