Building successful lab partnerships: Quest Diagnostics governance and integration approach

Facing pricing pressure from payers and increasing outreach transactions, University Hospitals partnered with Quest Diagnostics for ambulatory lab services—enabling resource reallocation to core mission areas while enhancing operational efficiency. 

The partnership's success relied on Quest's robust governance framework that empowers health system partners to influence operations without ownership. "For University Hospitals, there’s obviously an economic motivation, but what they were saying was, ‘Look, we don’t have to own the ambulatory lab to influence it and make sure it gets done in the way we want it done.’ That was achieved by having governance committees and business committees," notes Dermont, chief strategy officer at University Hospitals, describing Quest's collaborative governance approach.

Quest's approach included facilitating deep-dive diligence with peer organizations, deploying cross-functional teams bridging IT and operations for scenario planning, and building flexible roadmaps with permission to delay implementation when needed. Both organizations emphasize that "plug and play is folly"—Quest's customized solution addresses each partner's unique operational realities.

The collaboration empowered operation efficiencies for University Hospitals, including the strengthening of their rapid response labs to support the resolution of 95% of routine tests within 24 hours.

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