Madison, N.J.-based Quest Diagnostics is teaming up with Inovalon, a Bowie, Md.-based analytics software provider, to launch a patient-specific data service.
The two companies announced Tuesday the launch of Data Diagnostics, a service that will offer real-time, on-demand analytics provided at the point-of-care through existing electronic health-record workflows. Reports, which will be ordered individually as opposed to being offered on a subscription-as-a-service model, are expected to offer insight on how individual patients may be faring as measured by quality metrics.
The service, which is powered by Inovalon's analytics software, will live within Quest's Care360 EHR and the Care360 lab ordering and connectivity platform, which is interconnected with over 400 EHR platforms. Reports will be able to draw from Quest's 20 billion clinical laboratory test results and Inovalon's clinical datasets containing over 123 million patients.
Through that connectivity platform, doctors using Quest EHRs that aren't linked are still able to view Quest results across providers. The Care360 EHR is used by about 300,000 providers, and Quest serves about half of the country's physicians and hospitals through its lab services.
The two are engaging in joint distribution of the product, but there's no equity involved in the partnership. Pricing for reports can range anywhere from $15 to $50, with most being paid for in a shared-risk arrangement that covers the patient.
Data Diagnostics is expected to be sold to a range of customers, including practices, health plans, accountable care organizations and hospitals.
Quest CEO Steve Rusckowski said the product's placement in the clinical workflow is a significant selling point, as it can be ordered similar to how a physician would order diagnostic testing from Quest. “What we want is to be front and center with the ordering physician,” Rusckowski said. “Timely, with the information they need.”
The on-demand service, as opposed to a subscription-based model, allows providers to better control their costs and only pay for what they need, Inovalon CEO Dr. Keith Dunleavy said. The platform doesn't require a large, up-front purchasing decision.
“The motivation is that it allows for an alignment between the patient that needs something done, the provider that needs to get it done and the cost,” Dunleavy said “Instead of paying across the population regardless of what needs to get done it focuses resources precisely where it needs to be focused and only where it needs to be focused.”
Over time, Quest has expanded its business to offer analytics and data services beyond its traditional diagnostic lab offering. Though lab services are still central to its business, the company has also moved more into big data.
“More of our diagnostic information services have less to do with the clinical science and more to do with the information we attach it to, and how we serve that up and present it in a useful way for physicians to offer better treatment,” Rusckowski said.
Quest's second quarter earnings took a small hit from debt refinancing charges, dropping 11.3% to $118 million. Revenue grew just 1.2% to $1.9 billion, including gains from a horde of recent acquisitions.