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Pack Health to Expand in Birmingham to Accelerate Growth of Health Coaching Services Nationwide

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On January 17, 2023, Quest Diagnostics (NYSE: DGX) announced plans for Pack Health to nearly double its headquarters in Birmingham, Alabama, creating at least 200 new full-time jobs. This expansion, supported by state and local economic incentives, is expected to generate an estimated $27 million in economic impact over the next 20 years. The new facility will enhance Pack Health's capabilities in providing digital health coaching and chronic condition management, vital for improving patient outcomes. This marks a year since Quest's acquisition of Pack Health, emphasizing its role in connecting diagnostic insights to actionable health improvements.

Positive
  • Creation of 200 new full-time jobs by 2027.
  • Expected $27 million economic impact over 20 years from the expansion.
  • Doubling of headquarters space from 25,000 to 46,000 square feet.
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Marks 1-Year since Quest Diagnostics Announced Plans to Acquire Pack Health to Extend Digital Engagement and Coaching Services to Health Plans, Employers and Life Sciences Companies

BIRMINGHAM, Ala., Jan. 17, 2023 /PRNewswire/ -- Leading patient engagement company Pack Health, a Quest Diagnostics (NYSE: DGX) company, today announced plans to nearly double the space of its headquarter facilities in Birmingham and add at least 200 full-time employee positions based on economic development incentives from the state of Alabama in recognition of the public benefits accruing from the expansion of Pack Health's landmark Birmingham facility.

Through incentive support from the State of Alabama and Jefferson County, as well as local non-educational tax abatements, Pack Health will receive benefits projected to profoundly impact the economic state of Birmingham, Jefferson County and throughout Alabama. The investment, which includes recognition of Pack Health's job creation from the state, county and city of Birmingham, is expected to generate up to $27 million in estimated overall economic impact over a 20-year period.

The news marks a year since Secaucus, NJ-based Quest Diagnostics, the nation's leading provider of diagnostic information services, announced plans to acquire Pack Health in January 2022 to better connect diagnostic insights to actions that generate greater value, outcomes and quality, empowering affordable care. Pack Health is a patient-engagement company specializing in comprehensively addressing chronic conditions and comorbidities influenced by mental health, lifestyle behaviors, access to care and social determinants of health (SDOH). Pack Health employs certified Health Advisors trained across 30 chronic conditions who engage, motivate, monitor and support individuals through a digital engagement platform, providing personalized content. Clients include life science and biopharmaceutical companies, employers, health plans and other organizations focused on population health management.

"Pack Health will play an increasingly important role at Quest Diagnostics, connecting our diagnostic insights to actions patients can take to improve their health," said James E. Davis, CEO and President of Quest Diagnostics. "Pack Health provides ongoing engagement to help individuals sustain positive health choices, from maintaining an exercise program to participating in a clinical trial. With these capabilities, health plans, life science companies and employers can maximize the value of their health investments while also helping to create a healthier world."

Pack Health was founded in 2013 and first established its headquarters in downtown Birmingham, AL in 2018. In the years since, the company has continued to expand. The company's headquarters now houses programmers, developers, health advisors and other positions who assist in running the Pack Health platform. The new state-of-the-art center will continue to provide health coaching, engaging individuals online to build self-management skills, such as healthy eating for employee health programs and patient reported outcome surveys for clinical trials, for better health outcomes. The facility will also include an expanded fitness center, large walking trail and extensive healthy food options for employees, prioritizing employee wellness in the same manner Pack Health uses to serve its members.

As a result of the company's growth throughout the COVID-19 pandemic, when many turned to virtual care services including health coaching, Pack Health is expanding its current headquarters largely to accommodate its increasing employee headcount. The proposed plan will allow Pack Health's square footage to nearly double, from 25,000 square feet to 46,000 square feet, and increase parking for those onsite. The renovation is expected to be complete in June of 2023. The 200 positions, which will include mainly additional Health Advisors and coaching staff, with some member services representatives and software engineers joining, will be added to Pack Health's team by 2027.

"It is our pleasure to work with the State of Alabama to grow Pack Health in Birmingham," said Mazi Rasulnia, PhD, Founder and Vice President of Pack Health. "Beyond our pride at what we have accomplished in the last few years, we are extremely proud to add 200 positions to Jefferson County and expand our capabilities in connecting diagnostic insights to our members managing chronic health conditions. These benefits will go a long way towards furthering our work building a healthier community, bringing better therapies to patients and lowering medical costs. We look forward to deepening our connection to Birmingham's vibrant healthcare community."

The addition of Pack Health's new staff members and expanded headquarters are expected to help Jefferson County continue to develop a solid and varied local economy, as well as increase employment opportunities in Alabama for a diverse population. The expansion, which is supported by the Birmingham Business Alliance, will also improve the quality of life for citizens in Birmingham and beyond, as Pack Health aims to provide necessary and improved services. Pack Health remains committed to growing within the city of Birmingham and is a dedicated supporter of the local economy.

"Pack Health represents one of Birmingham's most successful startups, and it's rewarding to see Quest Diagnostics validate that success by launching growth plans that solidify Pack Health's future in its hometown," said Greg Canfield, Secretary of the Alabama Department of Commerce. "This is great news for Birmingham and a testament to the vitality of the region's start-up ecosystem."

The company is committed to upholding a diverse workforce. Approximately 70% of positions at Pack Health are held by people who self-identify as female or a minority by ethnicity, and Pack Health plans to continue to prioritize diversity and inclusion efforts throughout its expansion and beyond.

Market research shows demand for health coaching is expected to rise significantly over the next decade.1 In line with the shifting landscape of healthcare, Pack Health recognizes the need for consumers to navigate the complexities of managing chronic conditions with a nonjudgmental partner. Pack Health's Health Advisors work with each patient to craft a plan based on each individuals' needs, goals and their healthcare providers' recommendations to help its members move from where they are to where they want to go in their care journey.

For more information, visit www.PackHealth.com.

About Quest Diagnostics
Quest Diagnostics empowers people to take action to improve health outcomes. Derived from the world's largest database of clinical lab results, Quest's diagnostic insights reveal new avenues to identify and treat disease, inspire healthy behaviors, and improve health care management. Quest Diagnostics annually serves one in three adult Americans and half the physicians and hospitals in the United States, and our nearly 50,000 employees understand that, in the right hands and with the right context, our diagnostic insights can inspire actions that transform lives. www.QuestDiagnostics.com.


1 $7 Billion U.S. Health Coaching Market Gains Favor Among Consumers, Insurers & Employers

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SOURCE Quest Diagnostics

FAQ

What is the significance of Quest Diagnostics acquiring Pack Health?

Quest Diagnostics acquired Pack Health to enhance patient engagement and improve value-based care by integrating diagnostic insights into health management.

When did Quest Diagnostics announce plans to expand Pack Health?

Quest Diagnostics announced plans to expand Pack Health's headquarters on January 17, 2023.

How many jobs will Pack Health create in Birmingham, Alabama?

Pack Health plans to create at least 200 new full-time positions as part of its expansion.

What economic impact is expected from Pack Health's expansion?

The expansion is projected to generate an estimated $27 million in economic impact over the next 20 years.

What will the expansion of Pack Health's headquarters involve?

The expansion will nearly double the headquarters' size from 25,000 to 46,000 square feet and increase parking.

Quest Diagnostics Inc.

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