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11-04-2012 23:21:00

Quest Diagnostics Names Rusckowski As President, CEO

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DOW JONES NEWSWIRES

Quest Diagnostics Inc. (DGX) named Royal Philips Electronics NV (PHG, PHIA.AE) executive Stephen Rusckowski as its new president and chief executive, ending a six-month search for a successor to current CEO Surya Mohapatra.

Rusckowski's appointment is effective May 1 and he will also join the company's board. Rusckowski has served as CEO of Philips Healthcare, Royal Philips' largest unit, since 2006.

The management change could mark a new course for the company. Some decisions Quest made under Mohapatra--such as the acquisition of diagnostics company AmeriPath Inc. and an expansion into India--have been criticized by analysts.

Quest, the largest diagnostic-testing company in the U.S. by revenue, had been hurt by a decline in doctor-office visits as consumers have reined in their health-care spending since the recession. Last year, the company unveiled a restructuring initiative to reduce its costs by $500 million over the next three years to help it meet profit targets. In October, the company initiated a search for a replacement for Mohapatra, who held the titles of chairman, president and CEO.

Quest also appointed lead director Daniel C. Stanzione as its new non-executive chairman.

"Steve Rusckowski is uniquely qualified to be chief executive officer of Quest Diagnostics," Stanzione said. "He has built an enviable track record in health care by successfully driving growth, both organically and through disciplined, effective acquisitions. His emphasis on operational excellence has enabled him to deliver consistently impressive results."

In January, Quest reported its fourth-quarter earnings rose 14% as the company saw higher testing revenue and improved margins.

Shares closed at $59.57 Wednesday and were unchanged after hours. The stock is up 2.6% since the start of the year.

-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; nathalie.tadena@dowjones.com

(END) Dow Jones Newswires

April 11, 2012 17:21 ET (21:21 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

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