Markets
DGX

Quest Diagnostics, Inovalon to Better Value-Based Healthcare

In an effort to advance health care management and partake in the industry's transition from volume- to value-based healthcare, Quest Diagnostics Inc. DGX has collaborated with leading technology company, Inovalon Holdings, Inc. INOV , to announce the U.S. launch of Data Diagnostics - the industry's first real-time analytics for point-of-care.

Under this five-year, exclusive, collaboration agreement, Data Diagnostics will be made available from the fourth quarter of 2015 with revenues split evenly between Quest and Inovalon. Additional terms of the deal were not disclosed.

According to Quest, Data Diagnostics, which combines Quest's 20 billion clinical laboratory test results and Inovalon's clinical datasets on more than 123 million patients, compiles hundreds of real-time patient-specific data analyses. This can help in placing individual orders, on demand at the point of care within their existing workflow, to address gaps in quality, risk, utilization and medical history insights.

Accordingly, this may be useful in improving clinical and quality outcomes as well as financial performance for practices, health plans, ACOs, hospitals and other healthcare providers in real time. Interestingly, Data Diagnostics integrates Quest's Care360 and EHR lab ordering and connectivity platform that serves half of the nation's physicians and hospitals. Through this integration, customers will now be able to readily order and access Data Diagnostics reports within their existing clinical workflow.

According to Quest, this recent initiative is in line with the company's long-term strategy to generate value and differentiation from data assets as well as national scale and information technology. Both the companies strongly believe that Data Diagnostics, which translates petabytes of data into actionable insights on demand, offers effective point-of-care treatment with more meaningful impact in less time, assesses gaps in care to achieve incentive quality metrics and avoids waste. It thus has the potential to prove itself as a game-changer in the healthcare space.

In fact, Data Diagnostics is more than just a new approach to managing health data. It is deemed a major paradigm shift that will promote the current transition of healthcare from consumption and volume to quality and value-based care.

Notably, at present, the entire spectrum of U.S. healthcare population is under pressure to deliver high quality care while being vigilant of financial performance. Thanks to the legislation within the Medicare Modernization Act, Affordable Care Act, many state Medicaid initiatives as well as the U.S. Department of Health & Human Services' (HHS) goal of achieving 90% of all Medicare fee-for-service payments to quality and value by 2018. Hence, a solution like Data Diagnostics is of utmost need.

Currently, Quest Diagnostics retains a Zacks Rank #2 (Buy) while Inovalon Holdings has a Zacks Rank #3 (Hold). Other top-ranked medical stocks include AmSurg Corp. AMSG and Foundation Healthcare, Inc. FDNH . Both the stocks sport a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

QUEST DIAGNOSTC (DGX): Free Stock Analysis Report

AMSURG CORP (AMSG): Free Stock Analysis Report

FOUNDATION HLTH (FDNH): Free Stock Analysis Report

INOVALON HLDGS (INOV): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

DGX INOV

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More