Diagnostic testing, information and services provider Quest Diagnostics Inc. DGX recently formed a strategic alliance with end-to-end virtual care company, HealthTap, in an aim to launch virtual diagnostic testing services. Financial terms of the deal have been kept under wraps.
Per the terms of the deal, doctors will be able to conveniently order lab tests offered by Quest Diagnostics to patients using the HealthTap app. These tests include common lab tests like diabetes screening, cardiovascular risk assessment and hepatitis C screening as well as those advised in relation to critical health conditions.
Patients, on their part, can schedule their preferred time and location of Quest Diagnostics’ diagnostic centers as per their convenience. Test results can also be accessed by doctors and patients via the HealthTap app.
We believe this collaboration will help accelerate a patient’s treatment procedure. The app will do away with the need to physically visit the doctor with the lab test reports. Moreover, the HealthTap app can be downloaded for free from the Google Play and Apple App Store. The benefits associated with the app should thus reduce overall healthcare cost as well as time.
Accordingly, the partnership will enable healthcare providers to digitally access a wide range of diagnostic service options for patients via the Internet.
According to Quest Diagnostics’ management, this collaboration should help the cause of the growing number of digital healthcare patients who prefer to receive patient care without the need of a physical visit to the doctor’s office. Owing to this partnership, these patients will also gain access to Quest Diagnostics’ sophisticated diagnostic solutions utilizing HealthTap’s virtual platform. This, in turn, will expand the company’s overall customer base.
With the increasing popularity of online health kiosks and portals, the digital healthcare market is witnessing strong upside lately, particularly in the western part of the globe. By 2018, it is estimated that 22 million households will use virtual care solutions, up from less than a meager 1 million in 2013. According to 2012 data from an annual survey by the federal Centers for Disease Control and Prevention, 72% of office-based physicians used electronic medical record or electronic health record systems, compared to 48% in 2009. We expect such positive trends to gain further momentum in the days ahead.
We expect Quest Diagnostics to emerge as one of the leading pioneers in this growing virtual healthcare market, backed by the strategic collaboration with HealthTap.
Currently, Quest Diagnostics carries a Zacks Rank #3 (Hold). Some other better-ranked medical stocks include Amedisys Inc. AMED, AmSurg Corp. AMSG and DaVita HealthCare Partners Inc. DVA. While Amedisys sports a Zacks Rank #1 (Strong Buy), AmSurg and DaVita Healthcare hold a Zacks Rank #2 (Buy).
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