Pickled organs and preserved tissues are AmeriPath's favorite things. The firm provides anatomic pathology, dermatopathology, and esoteric testing services to hospitals, doctors, clinics, and clinical laboratories in about 20 states across the US. Some 400 pathologists in AmeriPath's network diagnose conditions such as cancer and kidney disease by examining tissue samples; work is performed in more than 70 outpatient labs and in about 200 hospitals. The company's esoteric testing operations involve complex, specialized clinical tests (including DNA analysis and molecular diagnostics) that doctors use to diagnose and treat disease. AmeriPath is a subsidiary of Quest Diagnostics.
AmeriPath's Dermpath Diagnostics unit is a specialty provider of dermatopathology (or skin pathology) services. AmeriPath also has specialty pathology divisions in the areas of gastrointestinal and digestive diseases, hematology and oncology, urology, and women's health diagnostics. Its esoteric testing offerings consist of a menu of thousands of tests that detect genes associated with certain diseases and determine how patients might respond to drugs, among other things.
As a market leader in a highly fragmented industry, AmeriPath counts on its nationwide footprint and favorable market dynamics (an aging population, for instance) to spur organic growth and widen its customer base. It also depends on maintaining contracts with managed care organizations, as well as with the hospitals and physician practice groups that contract their pathology services to AmeriPath.
Parent Quest is working to expand its anatomic pathology operations by combining marketing efforts for AmeriPath's services with its other diagnostic offerings. Quest markets its clinical and anatomic pathology testing services to general practice physicians and specialists across the US through a direct sales force. It also seeks to expand the services offered by AmeriPath through the development of new tests.
AmerPath's revenue potential can be impacted by economic and health reform factors, which could lead to lower sales of expensive diagnostic tests. The firm can also lose sales when hospitals choose to conduct anatomic and molecular testing operations on their own, instead of contracting the work out to AmeriPath. To ward off such losses, Quest is focusing on expanding offerings in high-growth specialty fields such as esoteric cancer diagnostics.
Quest acquired AmeriPath in 2007 for $2 billion from private equity firm Welsh, Carson, Anderson & Stowe (which had originally acquired AmeriPath in 2003). The acquisition significantly strengthened Quest's anatomic pathology and cancer testing capabilities. – less