Quest Diagnostics Completes Acquisition of Mercy's Outreach Laboratory Services Business

Rhea-AI Summary

Quest Diagnostics has successfully acquired Mercy's outreach laboratory services business in an all-cash asset transaction, though financial terms were not disclosed. This acquisition allows Quest to enhance patient care by broadening access to its comprehensive lab services across Arkansas, Kansas, Missouri, and Oklahoma. Mercy will retain ownership of its hospital labs, ensuring continued service for inpatient care. By leveraging Quest's advanced test menu and extensive patient-access network, this deal aims to deliver innovative and cost-effective laboratory solutions to healthcare providers and patients in the Midwest.

Positive

• Expanded market reach to Arkansas, Kansas, Missouri, and Oklahoma.
• Access to Quest's advanced, industry-leading test menu.
• Enhanced patient care through cost-effective laboratory services.

Negative

• None.

SECAUCUS, N.J. and ST. LOUIS, June 1, 2021 /PRNewswire/ -- Quest Diagnostics (NYSE:DGX) and Mercy today announced that Quest has completed its previously announced acquisition of the outreach laboratory services business of Mercy in an all-cash asset transaction. Additional financial terms were not disclosed.

With the transaction, Mercy's outreach laboratory services will transition to Quest's full-service laboratory in Lenexa, Kansas and the company's network of rapid response laboratories across the Midwest. Mercy will continue to wholly own and operate its hospital laboratories for tests connected to inpatient and hospital-based outpatient care needs. 

The aim of the transaction is to broaden access to innovative, quality and cost-effective laboratory services to deliver affordable patient care throughout the Midwest. The acquisition immediately broadens Quest's reach to providers and patients in Arkansas, Kansas, Missouri and Oklahoma. Patients and providers will benefit from access to Quest's innovative, industry-leading test menu, health plan relationships, network of about 1,000 conveniently located patient-access sites in the Great Midwest, and more cost-effective services. 

About Mercy
Mercy, named one of the top five large U.S. health systems for four consecutive years by IBM Watson Health, serves millions annually. Mercy is one of the nation's most highly integrated, multi-state health care systems, including more than 40 acute care, managed and specialty (heart, children's, orthopedic and rehab) hospitals, convenient urgent care locations, imaging centers and pharmacies. Mercy has 900 physician practices and outpatient facilities, more than 4,000 Mercy Clinic physicians and advanced practitioners and 40,000-plus co-workers serving patients and families across Arkansas, Kansas, Missouri and Oklahoma. Mercy also has clinics, outpatient services and outreach ministries in Arkansas, Louisiana, Mississippi and Texas. In addition, Mercy's IT division, Mercy Technology Services, and Mercy Virtual commercially serve providers and patients from coast to coast.

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, our diagnostic insights reveal new avenues to identify and treat disease, inspire healthy behaviors and improve health care management. Quest annually serves one in three adult Americans and half the physicians and hospitals in the United States, and our 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.

 

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SOURCE Quest Diagnostics

FAQ

What was the purpose of Quest Diagnostics acquiring Mercy's outreach laboratory services?

The acquisition aimed to broaden access to innovative and cost-effective laboratory services to enhance patient care throughout the Midwest.

When did Quest Diagnostics complete the acquisition of Mercy's outreach laboratory services?

Quest Diagnostics completed the acquisition on June 1, 2021.

What impact does the acquisition have on Quest Diagnostics' operations?

The acquisition expands Quest's reach and enhances its service offerings in Arkansas, Kansas, Missouri, and Oklahoma.

How will Mercy's lab operations change following the acquisition?

Mercy will continue to operate its hospital laboratories for inpatient and outpatient care, while its outreach lab services will transition to Quest.

What benefits can patients expect from this acquisition?

Patients will gain access to Quest's comprehensive test menu and a network of about 1,000 patient-access locations for more convenient and affordable services.