LabCorp 2014 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2014 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 128

  • 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
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

22
in which the laboratory is accredited. All of the Company's major laboratories are accredited by CAP. A laboratory’s receipt of
accreditation by CAP satisfies the CMS requirement for certification.
The Company's forensic crime laboratories located in Dallas, TX and Lorton, VA are accredited to ISO/IEC 17025:2005 by
the American Society of Crime Laboratory Directors, Laboratory Accreditation Board (“ASCLD/LAB”) in the discipline of
Biology and categories of nuclear DNA, mitochondrial DNA, body fluid identification and individual characteristic database
testing. Under the accreditation program managed by the ASCLD/LAB, a crime laboratory undergoes a comprehensive and in-
depth inspection to demonstrate that its management, operations, employees, procedures and instruments, physical plant, and
security and personnel safety procedures meet stringent quality standards.
The Company's full service forensic facilities in the United Kingdom are accredited to ISO/IEC 17025:2005 by the United
Kingdom Accreditation Service in many areas of forensic analysis. These facilities provide crime scene investigative services,
collecting samples for DNA analysis, mitochondrial DNA, microscopic analysis, tool marks, paint, and other forms of forensic
testing.
The Company has eight labs that have received ISO 15189:2007 accreditation. The ISO 15189:2007 standard recognizes the
technical competence of medical laboratories, thus providing a ready means for customers to find reliable high quality testing.
The list below reflects the Company's labs that have achieved this accreditation and the year in which they achieved it.
• LabCorp's Regional Testing Facility, Dallas, TX - April, 2014
• LabCorp's Regional Testing Facility, Denver, CO - March, 2014
• Integrated Genetics, Santa Fe, NM, October, 2013
• Integrated Genetics, Westborough, MA - September, 2013
• LabCorp's Regional Testing Facility, Phoenix, AZ - April, 2013
• LabCorp's Regional Testing Facility, Birmingham, AL - February, 2013
• Integrated Oncology, Brentwood, TN - February, 2012
• Viromed, Burlington, NC - January, 2012
• Center for Molecular Biology and Pathology (CMBP), Research Triangle Park, North Carolina - February, 2011
• LabCorp's Regional Testing Facility, Tampa, FL - January, 2010
• Integrated Oncology, Phoenix, AZ - September, 2009
Intellectual Property Rights
The Company relies on a combination of patents, trademarks, copyrights, trade secrets and nondisclosure and non-competition
agreements to establish and protect its proprietary technology. The Company has filed and obtained numerous patents in the U.S.
and abroad, and regularly files patent applications, when appropriate, to establish and protect its proprietary technology. From
time to time, the Company also licenses U.S. and non-U.S. patents, patent applications, technology, trade secrets, know-how,
copyrights or trademarks owned by others. The Company believes, however, that no single patent, technology, trademark,
intellectual property asset or license is material to its business as a whole.
Employees
As of December 31, 2014 the Company had over 36,000 full-time equivalent employees worldwide. Subsidiaries of the
Company have three collective bargaining agreements, which cover approximately 625 employees. The Company’s success is
highly dependent on its ability to attract and retain qualified employees, and the Company believes that it has good working
relationships with its employees. As of December 31, 2014, Covance had over 12,000 equivalent full-time employees,
approximately 47% of whom were employed outside of the United States and 12,185 of whom were full time employees. Covance
Drug Development is not a party to any collective bargaining agreements.
Regulation and Reimbursement
General
The clinical laboratory industry is subject to significant governmental regulation at the federal, state and local levels. As
described below, these regulations concern licensure and operation of clinical laboratories, claim submission and reimbursement
for laboratory services, health care fraud and abuse, security and confidentiality of health information, quality, and environmental
and occupational safety.