Driving Operational Excellence · Delivering the promise of a superior customer experience at lower...
Transcript of Driving Operational Excellence · Delivering the promise of a superior customer experience at lower...
Driving Operational Excellence
Jim Davis
EVP, General Diagnostics
Confidential | Internal Use Only2
SAFE HARBOR DISCLOSURE
The statements in the following presentations that are not historical facts may be forward-looking
statements. Readers are cautioned not to place undue reliance on forward-looking statements,
which speak only as of the date that they are made and which reflect management’s current
estimates, projections, expectations or beliefs and which involve risks and uncertainties that could
cause actual results and outcomes to be materially different. Risks and uncertainties that may
affect the future results of the Company include, but are not limited to, adverse results from
pending or future government investigations, lawsuits or private actions, the competitive
environment, changes in government regulations, changing relationships with customers, payers,
suppliers or strategic partners and other factors discussed in the Company's most recently filed
Annual Report on Form 10-K and in any of the Company's subsequently filed Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K, including those discussed in the “Business,” “Risk
Factors,” “Cautionary Factors that May Affect Future Results” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” sections of those reports.
Confidential | Internal Use Only3
Delivering the promise of a superior customer experience at lower cost
Transparent Digital
Convenient Flawless
Superior Customer Experience Cost Excellence
Customer Acquisition
SpecimenTesting
MedicalReporting
SpecimenTransport
SpecimenCollection
ClaimBilling
$
3
It’s not an “either / or” imperative …
We are delivering on BOTH
Confidential | Internal Use Only4
$750
$240
$220
$210 $1,420
2014 2015 2016 2017 Total
vs. Goal of
$600M
Proven track record of results with more opportunity ahead
Highlights$ Millions
• Over 40 health plans using
advanced estimation connectivity
• Collected over $100M in cash at
our Patient Service Centers
• Implemented new Logistics
routing and dispatch system,
reducing wasted stops
• Standardized multiple test
platforms, especially in PDM and
hematology
• Re-engineered test processes for
significant productivity and quality
improvements
vs. Goal of
$1,300M
Annual Target 2018 & Beyond = ~3% Total Cost Productivity
Confidential | Internal Use Only5
Since we last met in 2016 …
Missing Information
Fast and correct Billing
Revised Reports
Medical Quality
Savings through QMS
Culture of Improvement
Employee Satisfaction
Living our Values
Re-Collections
Failed Draws
Honoring appointments
Keeping Our Commitment
From 85% to
95% of target
Over 40 Health Plans
added since 2016
Health Plans on RTE
Real-Time Estimation
From 92% to
95% of target
Clinical turn-around time
Keeping Our Commitment
94% Response Rate
74% Engagement
40,000 Ideas
$25M+ Saved
50% Implemented
Improved EfficiencyImproved Experience
25% 23%
20%
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$DRIVE
1 2Reducing Denials
and Patient
Concessions
Reduce Denials
and Patient
Concessions
Digital
Experience
Standardize &
AutomateOptimize
4 3
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Denials
Concessions
Risk
Goal
Quest Taking
100%
of the Risk
Quest performs all
tests ordered
Quest attempts to
bill payor and patient
… will we be paid?
Old World
Provider
orders test
Quest
performs test
Quest works
with patient
Eligibility
Test coverage policy
Out of pocket payment information
New World
Provider
orders test
0% Denials
$0M Concessions
~ 6% Net Denials
~$300M Concessions
Taking risk out of the patient billing process
Confidential | Internal Use Only8
Why tests are denied and why we have ~ $300M in Patient Concessions
7%
14%
15%
25%
39%
Other
Mail Returned /Can't Find
Uninsured /Hardship
Non-CoveredTest
DisputesResponsibility
Why Payers Deny Patients Don’t Always Pay
5.0%
4.5%
1.7%
Gross Actvity Net Experience
Eligibility &
Data Quality
Test Coverage
& Benefits
Administrative
Requirements
Gross Denials
≈ 11%
Annual
Revenue
Opportunity
$120MNet Denials
Rate ≈ 6%
Confidential | Internal Use Only9
Electronic orders help create a Consumer Experience
• Analyze the order before the specimen is collected
• Alert the physician to order irregularities right away
• Outreach to the patient with transparent pricing
• Provide a moment of choice for the patient
• Connect the patient to her results
41%55%
72%
100%
2014 2016 2018
The key to transforming to the new world is an electronic order
$50M
Electronic Order Rate
Confidential | Internal Use Only10
Changing the norms
50%70%
50%30%
Encounters Patient Concessions
Quest
Collected
Client
Collected
100% = 120M
Specimen Sources“Client Bill” Excluded
100% = $300M
SMART: Substituable Medical Applications, Reusable Technologies
FHIR: Fast Healthcare Interoperability Resources
When Quest does the Draw
• Receive electronic order or digitize the paper order
• Activate real-time tools
• Is the patient in the plan?
• Is the test covered?
• Adjudicate: Deductible, Co-Insurance, Pricing
• Present price to the patient
• Capture credit card
When Client does the Draw
• Quanum Lab Services Manager used by 50,000
physician offices
• Specimen requirements
• Price transparency
• Connected to hundreds of EMRs
• Collaborating to present order quality checks
• Advancing SMART on FHIR integration
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DRIVE
1 2Digital
Experience
Standardize &
AutomateOptimize
$Reduce Denials
and Patient
ConcessionsDigitize Everything
4 3
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WelcomeTouch this screen
to check in
The Power of Digitization: good for clients, patients, employees … and productivity
Active in 2,200 PSCs Nationwide
12
New WorldOld World
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Patients and Employees see wait time
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Benefits our managers and employees
0
10
20
30
40
50
6:0
0 A
M
7:0
0 A
M
8:0
0 A
M
9:0
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10
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12
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1:0
0 P
M
Volume
Appointment
Wait Time
Walk-in
Wait Time
Real-time Monitoring
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Know where to go and when
7a 9a 11a 1p
Popular Times for Tuesday
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Appointments and pre-registration enables a Consumer Experience
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Confirmation by text and email with out-of-pocket expectation
Confidential | Internal Use Only18
Everyone Wins
15 min per
transaction ➔
10 min per
transaction:
$60M in labor value
Operational
Efficiency
I see how long
I’ll wait …
have something
to watch
Patient
Satisfaction
Everyone
knows their
place in line
– I don’t have
to referee
Employee
Satisfaction
Are they busy?
I need to plan
my day
Patient
Convenience
Confidential | Internal Use Only19
We are advancing our Physician services with Quanum Lab Services Manager
Rapid adoption of our new self-service channels
Calls per requisition down 10%+ since 2016
Confidential | Internal Use Only20
Digitization is a $120M opportunity
Transformation
Potential
Impact, est.
Patient Pre-Registration and
Appointment Scheduling
Believe 20% of phlebotomy
time is in handling data$ 60M
eRequisitionsClient drawn paper orders
transcribed in lab$ 25M
Physician Office processesCalling for supplies, pickups,
status, etc.$ 5M
Call Center optimizationSignificant call volume for PSC
hours, test results, etc.$ 30M
$ 120MOver ~5 years
Patient and Employee
Satisfaction:
immeasurable
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Digital
Experience
DRIVE
1 2
Standardize &
AutomateOptimize
$Reduce Denials
and Patient
Concessions
Standardize and
Automate our
processes4 3
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Partner#1
Partner #2
We are working with multiple suppliers, putting new innovations to work
Case Study in Action: Immunoassay
Improvements in Immunoassay platforms
allows shift away from 'Best of Breed'
approach
Intend to consolidate and simplify fleet for
greater throughput, more autonomy and
efficient footprint
Involving suppliers in our redesign events to
leverage expertise
Ultimately allows us to reimagine digital lab
workflows
500+ units
$50M over five years
6suppliers
7platforms
128Mtests
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Driving toward a standard operating platform
Reduce one-off system support
Simplify organization and regional management
Quickly load balance and move specimens
Faster customer on-boarding
Multiply the benefits of best-practices
Enables further consolidation
100%Regional Sites
on Qsuite Standard
Denver
2015New Mexico
Sacramento
San Jose
Florida
2016Birmingham
Baltimore
Las Vegas2017
Greensboro
NY / NJ2018
Pittsburgh
Esoteric Centers
Pathology CentersNext
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Saving 35,000 specimens overnight
West
Hills Lab
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Seamless re-routing and on-time delivery
Las Vegas
Sacramento
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Digital
Experience
DRIVE
1 2
4 3
Standardize &
AutomateOptimize
$Reduce Denials
and Patient
Concessions
Optimization
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Our drive for Continuous Improvement yields real results and we continue to see more opportunity
Situation
Only 50% of requisitions for
PDM tests met turn-around
time
Action
• Held first End-to-End Kaizen
• Seven dedicated teams
• Pain Management testing focus
Results
• Now reaching 95% to target
• While volume increased 30%
• Cut cycle time down by 40%
Example, Lab “A” Specimen Accessioning
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Our North region consolidation enabled our first automated lab
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We are now executing our East region strategy into our next state of the art lab
>15% Improved Productivity
Doubles Average Throughput
30% Greater Capacity
Consolidates Three Hub Labs
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Key takeaways
Proving how a digital transformation benefits our customers and our Company
Simplifying how customers engage with us also simplifies how Quest operates
Ample opportunity to generate 3% total cost productivity in the short and medium-
term horizons
INVESTOR MEETING
2018