Quest to return $138M in CARES Act funding

Quest Diagnostics will return $138 million in funding it received from the Coronavirus, Aid Relief, and Economic Security Act this spring, the company announced Oct. 22 in its third quarter financial results. 

The Secaucus, N.J.–based provider of testing and diagnostic services said the reason for returning the funds is due to its strong third quarter financial results. 

"We are grateful for the CARES Act funding that provided our company with support earlier this year at a time of great uncertainty for our nation. Several months into this pandemic, we do not require this funding. As a result, we believe returning these funds to the government now is the right thing to do," said Quest Chair, President and CEO Steve Rusckowski.

Quest saw its revenue increase to $2.8 billion in the quarter ended Sept. 30. This is a 42.5 percent increase from the same period in 2019. 

The company's operating income rose to $718 million in the third quarter, compared to $313 million recorded in the same period in 2019. 

Overall the company's net income reached $568 million in the third quarter of 2020, up from $215 million recorded in the third quarter of 2019. 

"Quest had a very strong third quarter, benefiting from continued demand for COVID-19 testing and the rapid recovery of healthcare utilization," said Mr. Rusckowski.

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