Original Source: FD (FAIR DISCLOSURE) WIRE
UNIDENTIFIED COMPANY REPRESENTATIVE: Before I introduce our first speaker I'd like to point out the breakout room for all companies that will be presenting in Ballroom C today will be at the Erris Julliard (ph) breakout room. And those can be reached by going out the doors here and down the stairs and to the right.
Our first speaker for the morning is Robert Hagemann, Senior Vice President and CEO of Quest Diagnostics. Sorry -- CFO. Apologies. It's early. I haven't had my coffee. I probably botched the name too.
ROBERT HAGEMANN, SVP, CFO, QUEST DIAGNOSTICS: Good morning and thank you for coming out so early to hear about Quest Diagnostics. With me today is our Vice President of Investor Relations, Laure Park. Why don't we get started? This is our Safe Harbor disclaimer.
All right, let me start by describing Quest Diagnostics to you. Who are we? We're a leader in providing healthcare insights and solutions which help improve health. We provide comprehensive diagnostic testing of human fluids, tissues, cells and genes from the very routine to the most complex and esoteric that there is. The results of those tests are used by physicians to diagnose, monitor, predict and increasingly prevent disease. In addition, we offer advanced information technology solutions to physicians and hospitals which allow them to improve care and efficiency in their operations.
As well, we facilitate the introduction of new therapeutics by pharmaceutical companies through our clinical trials testing business. But most importantly Quest Diagnostics is a company with incredible reach. We serve half of all the physicians and half of all the hospitals in the United States and we serve 140 million patients each year.
Taking a look at the industry in which we operate, we estimated it to be about a $40 million industry here in the U.S. and at 12% of the total market we're the clear industry leader, about 60% larger than our nearest competitor. As you can see from the slide here, hospital-based laboratories account for about 60% of the total market; there are roughly 5,000 hospital-based laboratories around the country, hospitals are competitors as well as customers of ours.
Hospitals typically send out about 3 to 5% of their testing needs to commercial laboratories like ourselves. As you can see from the pie chart here, we estimate that about a third of what hospitals perform is for inpatients, about a third is for outpatients, and roughly a third is in the outreach market where they compete with us for physician office business. About a third of the total market, which includes Quest Diagnostics, is made up of commercial laboratories.
There are literally thousands of commercial laboratories around the country, but only a handful having revenues over $100 million. One of those being LabOne, as you see here on the pie chart which we've broken out separately and I'll talk about later. We recently announced the planned acquisition of LabOne which we expect to close later in the fourth quarter. The remainder of the market here …