8-KOther Events

QUEST DIAGNOSTICS INC 8-K Report, Corporate Update (Jun 3, 2019)

Filed June 3, 2019For Securities:DGX

Summary

Quest Diagnostics Incorporated (DGX) filed this 8-K on June 3, 2019, to disclose a significant data security incident involving its third-party billing collections vendor, American Medical Collection Agency (AMCA). AMCA reported unauthorized access to its systems between August 1, 2018, and March 30, 2019. The compromised information may include financial data (credit card numbers, bank account information), medical information, and Social Security Numbers of approximately 11.9 million Quest Diagnostics patients. Quest Diagnostics' own laboratory test results were not affected, as they were not provided to AMCA. Quest Diagnostics has taken immediate steps, including suspending collections with AMCA and initiating notifications to affected parties and regulators. The company is cooperating with AMCA and security experts to investigate the full scope of the incident and potential impact. While Quest Diagnostics has insurance coverage, it is limited. The company emphasizes its commitment to patient data privacy and security and acknowledges the potential risks and uncertainties associated with this event, including regulatory inquiries, litigation, reputational damage, and financial impact.

Key Highlights

  • 1Quest Diagnostics disclosed a data security incident impacting its vendor, American Medical Collection Agency (AMCA).
  • 2AMCA's systems, which handled billing collections for Quest Diagnostics, experienced unauthorized access between August 1, 2018, and March 30, 2019.
  • 3Potentially up to 11.9 million Quest Diagnostics patients may have had their personal, financial, and medical information compromised.
  • 4The compromised data may include credit card numbers, bank account information, Social Security Numbers, and other personal/medical details.
  • 5Quest Diagnostics' laboratory test results were not provided to AMCA and therefore were not affected.
  • 6Quest Diagnostics has suspended business with AMCA, is notifying affected parties and regulators, and is investigating the incident with external experts.
  • 7The company has insurance for potential liabilities, but it is limited in scope and subject to a deductible.

Frequently Asked Questions

Quest Diagnostics is reporting a data security incident that occurred at its third-party billing collections vendor, American Medical Collection Agency (AMCA). AMCA's systems were accessed by an unauthorized user between August 2018 and March 2019, potentially exposing sensitive information of up to 11.9 million Quest Diagnostics patients.

AMCA has informed Quest Diagnostics that the compromised data may include financial information (like credit card numbers and bank account details), medical information, and other personal information such as Social Security Numbers. Quest Diagnostics' laboratory test results were not affected.

Quest Diagnostics has stopped sending collection requests to AMCA, is notifying affected health plans and regulators, and is working with AMCA and security experts to investigate the incident. They are committed to patient privacy and security.

Quest Diagnostics acknowledges there could be potential liabilities and costs related to the incident. They do have insurance coverage for certain aspects, but this coverage is limited in amount and subject to a deductible. The full financial impact is uncertain and depends on the ongoing investigation and potential outcomes of regulatory inquiries or litigation.