Quest Diagnostics, Optum partner to improve health system

Lab testing giant Quest Diagnostics ($DGX) and health services company Optum are joining forces to improve the health system. While Optum will help Quest cut the costs of its billing processes, Quest will now provide Optum with the screening services it offers clients.

“This partnership expands on Optum’s commitment to bring uniquely effective solutions to all segments of the health care marketplace and collaborate in ways that ultimately deliver better experiences and care for patients,” said Optum CEO Larry Renfro in a statement. “Quest Diagnostics’ proven laboratory expertise and organizational capabilities make Quest an ideal partner.”

The partnership will see Quest’s revenue services operations, including about 2,400 Quest employees, move over to Optum360 in a bid to decrease the cost and complexity of its billing processes, according to the statement. The duo hopes to reduce both payment denials from insurers and bad debt resulting from patients who don’t pay their bills.

They also aim to foster the use diagnostic information services--including data analytics and connectivity solutions--to improve the effectiveness of healthcare and manage costs for health plans and care providers, the companies said in the statement.

Lab testing giant Quest Diagnostics is teaming up with Optum, a healthcare services company, to improve the healthcare system. The partnership will focus on increasing transparency of healthcare costs, reducing costs and improving healthcare effectiveness. Finally, Quest will become Optum’s primary partner for the biometric screening services it offers its clients, employers and health plans.

“Quest is excited to partner with Optum in what both companies view as the start of a long-term relationship. ...This alliance advances Quest’s top strategic priorities to accelerate growth and drive operational efficiencies,” said Quest CEO Steve Rusckowski in the statement.