LabCorp 2010 Annual Report Download - page 5

Download and view the complete annual report

Please find page 5 of the 2010 LabCorp annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 52

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52

3
Broader international presence means greater ability to compete for large global trials and
to further personalized medicine by developing tests to accompany new compounds.
MOVE TOWARD ALTERNATIVE DELIVERY MODELS FOR LAB SERVICES
Health care reform will bring new models of care to our system, with the likely emergence of
larger physician group practices and sizeable Accountable Care Organizations. Our size and
scale provide an excellent platform from which to deliver services to these organizations, but
it is likely that the delivery and payment models will vary from traditional arrangements. We are
well-positioned to respond to the emerging needs of the heath care system and will continue
to develop ways to add value in the most efficient manner.
IMPROVE OUR ABILITY TO PROVIDE ACTIONABLE INFORMATION TO DOCTORS
AND PATIENTS
We continue to lead the industry in the breadth and simplicity of our connectivity products.
Providers฀can฀connect฀to฀LabCorp฀through฀thousands฀of฀EHR฀and฀EMR฀platforms,฀assisting฀
them in managing their patients and in qualifying for pay-for-performance and meaningful-use
bonuses. We achieved a major milestone with the launch of LabCorp Beacon. Customers
can฀now฀receive฀results฀from฀all฀LabCorp฀brands฀(including฀Dianon,฀US฀Labs฀and฀Esoterix)฀
through the Beacon portal. We have over 4,000 customers using Beacon for delivery of results
and the number is growing by hundreds per week. We also released the Beacon mobile
iPhone application in 2010. All of our connectivity products are built on our open-platform
strategy, allowing physicians to connect to LabCorp regardless of their underlying IT products
and platforms.
CONTINUE TO INCREASE OUR EFFICIENCY BY OPTIMIZING THE BUSINESS SO THAT WE
CAN MAINTAIN OUR LOW-COST STRUCTURE
In 2007 we announced that we would reduce our operating costs by $100 million by the
end of 2010 without diminishing our quality or service. We accomplished this bold goal as
planned. In 2010 alone, we completed the Sysmex hematology automation project, the
largest฀laboratory฀automation฀project฀ever฀undertaken฀in฀the฀United฀States.฀We฀implemented฀
“Touch” accessioning in nearly 400 patient service centers and are processing over 23,000
accessions per day with this system. Touch is an on-screen draw tool that also allows us to fully
accession specimens in patient service centers, increasing the accuracy of specimen collection
while reducing paperwork and labor. We also implemented online appointment scheduling
and our AccuDraw specimen collection tool in all patient service centers.
We continued the consolidation of our billing resources and the implementation of LEAN
processes. The billing team’s accomplishments (with strong support from our operating
divisions) were impressive. We reduced our billing footprint from 24 to 13 locations and
opened a new, dedicated billing facility. We reduced bad debt by 50 basis points despite
a difficult economy, and our year-end DSO was at a record-low 43 days. Impressively, our
fourth quarter 2010 customer survey showed satisfaction with LabCorp service at an all-time
high. Thus, our efficiency initiatives have not compromised service – they have made it better.
Partnerships
Competitive
Advanced Technology