Quest Diagnostics Incorporated DGX recently joined as a participating partner in the Centers for Disease Control and Prevention's (CDC) Increasing Community Access to Testing (ICATT) for the COVID-19 program. The ICATT program aims to support free COVID-19 laboratory testing for patients across communities impacted by the pandemic in the United States.
Following a competitive bid, the CDC selected Quest Diagnostics as a participating partner in the ICATT program. However, financial terms regarding the same have been kept in wraps. This collaboration will enable Quest Diagnostics to expand access to COVID-19 diagnostic services in underserved communities to bridge the equity gaps in the country’s pandemic response.
Quest Diagnostics’ management is optimistic about CDC’s efforts to increase accessibility to critical COVID-19 laboratory testing for individuals in most need through public-private collaboration. The CDC-brokered model may help curb the spread of SARS-CoV-2 and other contagions by making high-quality laboratory testing financially accessible.
Under the ICATT program, Quest Diagnostics will enhance access to $0 out-of-pocket COVID-19 testing to qualifying uninsured individuals at roughly 1,200 of its 2,100 patient service centers. To qualify, individuals must complete a brief online screening questionnaire through the company’s consumer-initiated testing service, QuestDirect. Uninsured and insured individuals aged 2 years and older are eligible for the program.
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The QuestDirect platform will direct a qualifying uninsured individual to make an appointment at an ICATT-participating Quest Diagnostics patient service center after they have completed the questionnaire. The qualifying criteria involve being symptomatic, recently exposed to a COVID-19 patient and/or having other health risks.
Going by a report in Grand View Research, the global COVID-19 diagnostics market is expected to see a CAGR of 7.7% from 2022 to 2030. Factors such as rising government initiatives for mass testing, the growing need for speedy diagnostics, and the absence of specific drugs can be attributable to market growth.
Given the market potential, Quest Diagnostics’ latest collaboration with the CDC on its ICATT initiative seems strategic.
Previously, Quest Diagnostics has partnered with the CDC on a number of public health testing and research initiatives, including those related to SARS-CoV-2 variant sequencing and serology testing. In March 2022, Quest Diagnostics was granted a contract by CDC to conduct testing and provide laboratory data analysis to help detect patterns in SARS-COV-2 seroprevalence on a multi-state basis. The contract is intended to assist the CDC in evaluating the proportion of the population infected by or vaccinated against SARS-CoV-2.
In January 2022, the company announced the availability of an at-home COVID-19 rapid antigen test service for consumer purchase through its consumer-initiated testing platform, QuestDirect. The new service features proctored telehealth visits in partnership with eMed. The service allows individuals to use Abbott’s BinaxNOW COVID-19 Ag Card Home Test under the supervision of a certified telehealth proctor.
The company is bridging healthcare gaps to address health disparities in underserved communities, including those affected by COVID-19, through its Quest for Health Equity (Q4HE) initiative.
DGX has outperformed its industry in the past year. The stock has gained 0.1% against a 38.6% decline of the industry.
Currently, Quest Diagnostics carries a Zacks Rank #2 (Buy).
A few better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. AMN, Merck & Co., Inc. MRK and Patterson Companies, Inc. PDCO.
AMN Healthcare has a long-term earnings growth rate of 1.1%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.6%, on average. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has outperformed its industry in the past year. AMN has gained 13.9% against the industry’s 32.7% fall.
Merck has a long-term earnings growth rate of 10.1%. The company surpassed earnings estimates in the trailing three quarters and missed in one, delivering a surprise of 13.4%, on average. It currently carries a Zacks Rank #2.
Merck has outperformed its industry in the past year. MRK has gained 19.6% against the industry’s 15.7% growth.
Patterson Companies has an estimated long-term growth rate of 9.6%. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 16.5%. It currently flaunts a Zacks Rank #2.
Patterson Companies has outperformed its industry in the past year. PDCO has lost 1.8% compared with the industry’s 10.5% fall.
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