LabCorp 2012 Annual Report Download - page 4

As we continue to deploy our capital toward acquisitions
and share repurchase, we recently announced our goal to
reach a target leverage ratio of 2.5 times debt to EBITDA over
time. Since 2008, LabCorp has generated approximately
$4 billion in operating cash, and our deployment of this
capital has been divided almost evenly between acquisitions
and share repurchase. In the future, we expect to deploy
our free cash fl ow similarly; and in the absence of sizable
acquisition opportunities, we anticipate deploying additional
leverage largely toward share repurchase.
Our second strategic pillar is to enhance our IT capabilities
to improve the physician and patient experience.
In 2012, we completed the nationwide rollout of our LabCorp
Beacon® platform, an end-to-end lab solution that provides
signifi cant value to all health care stakeholders. Beacon’s
assets and functionalities include physician, patient and
payer portals, electronic ordering, enhanced reports, lab
analytics that provide trending of patient, test and population
data and clinical decision support tools. LabCorp Beacon® is
highly fl exible and designed to facilitate seamless integra-
tion with customer workfl ow.
We have several new population health analytics programs
in development (LabCorp Beacon: Analytics) that provide
health care business intelligence tools to hospitals, physi-
cian practices and accountable care organizations (“ACOs”).
These tools help our customers effi ciently manage their
productivity, quality and patient outcome metrics. Our robust
rules engine maintains more than 600 clinical quality measures
that are highly customizable and provide full compliance
with reporting requirements. Real-time clinical alerts
highlight gaps in care for patients and patient populations.
In late 2012, we completed our nationwide rollout of LabCorp
Beacon: Patient, a tool that enables patients to take control
of their health information. Our Patient Portal is a secure and
easy-to-use online solution that enables patients to receive
and share lab results, make lab appointments, pay bills, set
up automatic alerts and notifi cations and manage health
information for the entire family.
Our open platform approach to Electronic Medical Record
(“EMR”) connectivity benefi ts customers by allowing
them to connect seamlessly to LabCorp directly or through
the EMR of their choice. We now interface to more than
650 different EMR partners, and we work closely with lead-
ing EMR partners to streamline connectivity and enhance
lab workfl ow for our mutual customers. In 2012, we added
more than 8,000 new client EMR interfaces, bringing our
total EMR interfaces above 30,000.
We are also proud that we remain the only national labora-
tory that has standardized its instrumentation, billing system
and information system. Our relentless focus on integration
of acquisitions and standardization of systems will continue
to benefi t LabCorp and our customers in the years ahead.
Our third strategic pillar is to improve effi ciency to offer
the most compelling value in laboratory services.
We constantly seek to improve productivity and lower cost
in every aspect of our business, which is why we have
increased per-employee throughput more than 40 percent
in our core laboratories since 2008. We have also improved
our call center operations, improving response time while
reducing the number of facilities by more than 65 percent.
These critical enhancements to our business have not
diminished our commitment to service; indeed, our service
metrics, customer satisfaction ratings and turnaround times
consistently exceed expectations.
Our key 2012 effi ciency initiative was the deployment of
Propel robotic technology in our Powell Center for Esoteric
Testing in Burlington, North Carolina. Over time, we expect
OUR FIVE STRATEGIC PILLARS
PILLAR ONE
Deploy capital to investments that enhance our business and return capital to shareholders
PILLAR TWO
Enhance IT capabilities to improve physician and patient experience
PILLAR THREE
Continue to improve effi ciency to offer the most compelling value in laboratory services
PILLAR FOUR
Scientifi c innovation at appropriate pricing
PILLAR FIVE
Development of alternative delivery models
LABORATORY CORPORATION OF AMERICA
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