Quest Diagnostics and Laboratory Corp. of America will likely not face any reputational damages or client losses following a data breach that exposed the information of nearly 20 million patients combined because they have such strong positions in the clinical lab market, according to Moody's.
Quest began notifying 11.9 million patients last week of the data breach at its billing vendor American Medical Collection Agency. The breach did not affect information technology systems. LabCorp is alerting 7.7 million consumers of the data breach, which may have exposed patients' credit card or bank account information.
Although the data breach did not comprise laboratory results form the two companies, the breach is a credit negative for the two companies, reports Moody's. Quest and LabCorp have not and most likely won't experience financial setbacks because of the breach.
Moody's reports that the long-term financial and credit ramifications for the companies is still uncertain. Quest confirmed that it has cybersecurity insurance. It is also reportedly too early to evaluate the reputational damage of Quest and LabCorp.
The clinical lab industry is very fragmented, with Quest and LabCorp operating as the largest companies. Moody's predicts Quest and LabCorp will likely continue to dominate the market.
Quest Diagnostics and Laboratory Corp. of America will likely not face any reputational damages or client losses following a data breach that exposed the information of nearly 20 million patients combined because they have such strong positions in the clinical lab market, according to Moody's.
Quest began notifying 11.9 million patients last week of the data breach at its billing vendor American Medical Collection Agency. The breach did not affect information technology systems. LabCorp is alerting 7.7 million consumers of the data breach, which may have exposed patients' credit card or bank account information.
Although the data breach did not comprise laboratory results form the two companies, the breach is a credit negative for the two companies, reports Moody's. Quest and LabCorp have not and most likely won't experience financial setbacks because of the breach.
Moody's reports that the long-term financial and credit ramifications for the companies is still uncertain. Quest confirmed that it has cybersecurity insurance. It is also reportedly too early to evaluate the reputational damage of Quest and LabCorp.
The clinical lab industry is very fragmented, with Quest and LabCorp operating as the largest companies. Moody's predicts Quest and LabCorp will likely continue to dominate the market.