LabCorp 2008 Annual Report Download - page 11

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Laboratory Corporation of America® Holdings 2008 9
Outcome Improvement Program Expansion
The Centers for Disease Control and Prevention
estimates that chronic disease affects 90 million
Americans and results in “illness, disability,
extended pain and suffering, and major
limitations in daily living.”1 In addition to
the human toll, chronic diseases account for
billions of dollars in health care costs that
burden an already taxed system. We have
made outcome improvement programs the
second plank in our personalized medicine
platform, due to our confi dence that these
programs can make a profound difference
in reducing the incidence and severity of
these conditions.
We have seen fi rsthand the effectiveness of
such programs, beginning with our Litholink
program for kidney stone management. With
an 80 percent reduction in stone recurrence
and a $2,000 reduction in annual treatment
cost per patient, we are able to help improve
patients’ lives and save the health care system
money. It is gratifying that patients and payers
have widely embraced Litholink and that
this proprietary program is generating double-
digit revenue growth.
We have identifi ed chronic kidney disease
(CKD), which affl icts 26 million Americans –
most of whom do not know they are sick –
as the next area of expansion for outcome
improvement programs. With the assistance
of an international advisory board of medical
experts and the support of the National Kidney
Foundation, we have developed a sophisticated
program to assist physicians in identifying
patients with chronic kidney disease in its early
stages and in treating them in accordance with
accepted guidelines. Physicians, payers and
employers have enthusiastically adopted the
CKD program. We expect to expand this success
to other outcome improvement programs that
are already under development.
1 http://www.cdc.gov/mmwr/preview/mmwrhtml/ss5711a1.htm
Revenue
Growth
Drivers
• Industry Consolidation
• Hospital Outpatient
and Outreach
• Aging Population
• Increased Esoteric Testing
• Outcome Improvement
Programs
• Companion Diagnostics