To properly quarantine is to separate the birds by several hundred feet. Use separate feeder and waters, and anything to carry the feed and water. One should do the chores to one flock, come in, change clothes and SHOES, and go care for the second flock. This should be done for several weeks. This allows the birds to be inspected thoroughly, and also gives the birds time to show signs of disease if there is one.
Most backyard chicken keepers do not have the set up or the space to do quarantines. Some do an all out, and all in exchange, meaning that they totally replace an aging flock and start over. Some feel more comfortable adding chicks they themselves raise, with the idea that newly hatched chicks are not old enough to pick up a hidden disease. When chicks get sick, they tend to die quickly. Some will only take chickens from established places, or places that they can visually inspect.
Some people don't worry about it much and get birds from auctions and swaps. To me, this is the most dangerous of picking up diseases, as strange birds are exposed to each other, could easily go to the swap healthy, pick up some disease, and come down with it in your flock.
Many people think that separating the birds with a fence is quarantine, but it is not. Most chicken diseases are spread through the air. Most backyard set ups do not have the space to quarantine.
It is important to note, that when you add chickens, you are assuming a risk of bringing in a disease or parasites. Look the new birds over carefully. Inspect them close under their feathers, and their vents. If I had a very expensive flock, I would NOT ever add new birds, other than their own chicks. If I had a huge flock of 30+ birds, I would not risk it, if egg sales were a part of my income, I would not, but for the dozen of birds that I keep as a flock, many times I have added new birds.
Mrs K