Quest Diagnostics is feeling the effects of its 2007 acquisition of pathology giant Ameripath. Yesterday Quest announced first quarter revenues of $1.8 billion compared to last year's first quarter revenues of $1.5 billion. Of the 16.9% increase, 13% was contributed by AmeriPath. Revenues for Quest's clinical testing business, which account for over 90% of total revenues, were 17.1% above 2007, with AmeriPath contributing about 14%. Volume was up 5.6% compared with 2007.

Meanwhile, Quest's income from continuing operations in the first quarter of 2008 was $141 million, or $0.72 per diluted share, compared to $108 million, or $0.55 per diluted share, in the first quarter of 2007.

Robert A. Hagemann, Quest's chief financial officer, noted in yesterday's call with analysts that the first quarter also saw "a positive impact to the year-over-year revenue per requisition comparison of about 0.5% due to higher reimbursement on the retained United [Healthcare] work, which brings the year-over-year revenue impact of the contract change to about 1%," he said.

Beginning in January of last year, Quest experienced a significant volume loss that ramped up over the first quarter of 2007 due to the company's loss of a contract with United Healthcare. According to Hagemann, "there continues to be about a 1.5% carry-over impact [of the lost United business] in comparing this year's first quarter volume to that of last year."