LabCorp 2014 Annual Report Download - page 13

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The Company's leadership role as a global provider of innovative laboratory services in working with pharmaceutical,
biotechnology and in vitro diagnostics companies, is significantly enhanced following the acquisition of Covance. Prior to the
acquisition, the Company developed, in-licensed and commercialized numerous genetic tests such as ALK, BRAF, EGFR, KRAS
and others linked to targeted therapy options. The Company will maintain its strong focus on the development of companion
diagnostics. The Company's capabilities in assay development, its access to a broad spectrum of testing platforms, and its experience
with clinical trials, further complemented by Covance’s robust end-to-end drug development services, enhance LabCorp’s market
leadership position in genomic testing.
Beyond clinical trials, there are also many examples where companion diagnostics have moved into the commercial setting
and are helping improve care, such as: (1) assisting in determining the efficacy of a drug for an individual; (2) helping the physician
select the correct dosage; and (3) reducing adverse events. In 2006, 13 companion diagnostics were available. By the end of 2014,
that number had grown to 113, with many more in the development pipeline. Companion diagnostics are increasingly understood
to be critical to the advancement of health care, as they assist in determining the efficacy of a drug for an individual, help the
physician select the correct drug dosage, and reduce adverse patient events. In February 2015, the National Institutes of Health
announced a new Precision Medicine Initiative, designed to further the development and use of patient-specific health care, such
as companion diagnostics. The Company will continue to play an important role in both bringing new companion diagnostics to
the market and making them commercially available once the drug has been approved, leveraging its experience from supporting
the clinical trials that demonstrate the safety and efficacy of such products.
Pillar Five: Develop knowledge services
The Company remains committed to developing knowledge services that create value by enhancing treatment decisions,
reducing health care costs and improving patient outcomes.
The Company recognizes that fundamental changes are taking place in the U.S. health care system and the clinical laboratory
industry, such as health care reform, greater consumer engagement in health care decision-making, new payment models, and the
movement of health care delivery toward large health systems, integrated delivery networks, and ACOs. These market shifts create
demand for knowledge services, such as the Enlighten HealthSM and BeaconLBS® initiatives. These services create consultancy
with physicians and providers, increase intimacy with patients and consumers, and strengthen relationships with other key
stakeholders, all of which in turn support business growth.
In 2014, the Company created its Enlighten HealthSM division, a leading health care services business designed to modernize
clinical diagnostics and advance health care technologies and innovation. Enlighten HealthSM’s suite of business intelligence and
patient care tools includes:
•Enlighten HealthSM: Clinical Decision Support, an advanced, disease-specific, individualized lab test reporting engine
that helps patients better understand and manage their chronic illness and incorporates medical guideline-directed context
into lab reports for physicians and providers,
•Enlighten HealthSM: Care Intelligence, a population health analytics program that aggregates and displays customizable
clinical, operational and financial intelligence to assist hospitals, physician practices and ACOs with their compliance
and reporting requirements,
•Enlighten HealthSM: Genomics, a provider of sequencing-based diagnostic and interpretation capabilities, including the
ExomeRevealSM whole exome sequencing testing service,
•Enlighten HealthSM: Genetic Counseling, a workforce of approximately 140 board-certified genetic counselors that
supports both patients and physicians by identifying genetic risks, explaining appropriate genetic testing options,
discussing the implications of test results and helping patients make better health care decisions.
The Company's BeaconLBS® Platform is a point-of-care decision support service that interfaces with test ordering systems to
assist physicians in lab and test selection, helping them to order the right test for the patient at the right time. Physicians, patients
health care delivery systems and payers will benefit from this innovation, which will improve quality and more effectively manage
costs without disrupting physician work flow. The Company's rules engine interfaces with payer policies for ordering, utilization,
adjudication and payment.
In 2013, BeaconLBS® signed an agreement with UnitedHealthCare to implement its products in Florida. UnitedHealthcare
launched the laboratory benefit management program with BeaconLBS® in Florida on October 1, 2014 and its implementation is
ongoing.