Quest Diagnostics (DGX) risk factors: FY2025 10-K

1. The U.S. healthcare system continues to evolve, and medical laboratory testing market fundamentals are changing, and our business could be adversely impacted if we fail to adapt.
2. The clinical testing business is highly competitive, and if we fail to provide an appropriately priced level of service or otherwise fail to compete effectively it could have a material adverse effect on our revenues and profitability.
3. Government payers, such as Medicare and Medicaid, have taken steps to reduce the utilization and reimbursement of healthcare services, including clinical testing services.
4. Health plans and other third parties have taken steps to reduce the utilization and reimbursement of health services, including clinical testing services.
5. Failure to develop, acquire licenses for, introduce, or commercialize new tests, technology and services could negatively impact our testing volume, revenues and profitability.
6. Failure to establish, and perform to, appropriate quality standards, or to assure that the appropriate standard of quality is observed in the performance of our diagnostic information services, could adversely affect the results of our operations and adversely impact our reputation.

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1. Significant changes or developments in U.S. laws or policies, including changes in U.S. healthcare regulation, may have a material adverse effect on our business.
2. We are subject to numerous legal and regulatory requirements governing our activities, and we may face substantial fines and penalties, and our business activities may be impacted, if we fail to comply.
3. Our business and operations could be adversely impacted by the FDA's approach to regulation.
4. We are subject to numerous political (including geopolitical), legal, operational and other risks as a result of our international operations which could impact our business in many ways.
5. We may be unable to obtain, maintain or enforce our intellectual property rights and may be subject to intellectual property litigation that could adversely impact our business.
6. Adverse results in material litigation could have an adverse financial impact and an adverse impact on our client base and reputation.

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1. Our outstanding debt may impair our financial and operating flexibility.

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1. The development of new technologies is rapidly changing diagnostic testing, which will impact the healthcare industry and the competitive environment. The development of new, more cost-effective solutions that can be performed by our customers or by patients, which could accelerate the internalization of testing by hospitals or clinicians, could negatively impact our testing volume and revenues.
2. We have been and expect to continue to use AI technology in the testing services we offer. The challenges with properly managing the development and use of these technological innovations could result in harm to our reputation, business or customers, and adversely affect our results of operations.AI
3. Hardware and software failures or delays in our IT systems, including failures resulting from our systems conversions, services and support provided by third parties, or otherwise, could disrupt our operations and cause the loss of confidential information, customers and business opportunities or otherwise adversely impact our business.
4. Our business could be negatively affected if we are unable to continue to strengthen our efficiency.
5. Our business operations and reputation may be materially impaired if we do not comply with privacy laws or information security policies.
6. Our approach to corporate responsibility may not satisfy all our stakeholders.
7. The IT systems that we rely on may be subject to unauthorized tampering, cyberattack or other security breach.Cybersecurity
8. Our ability to attract and retain qualified employees and maintain good relations with our employees is critical to the success of our business and the failure to do so may materially adversely affect our performance.
9. Business development activities are inherently risky and integrating our operations with businesses we acquire may be difficult.
10. Our operations may be adversely impacted by the effects of natural disasters such as hurricanes and earthquakes, public health emergencies and pandemics, geopolitical conflicts, hostilities or acts of terrorism and other criminal activities.reworded
11. Any future public health emergencies or pandemics may negatively affect us, including through its impact on the labor force and supply chain.
12. Inflationary pressures could adversely impact us because of increases in the costs of materials, supplies and services, and increased labor and people-related expenses.

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