Quest Diagnostics to Acquire Outreach Lab Services Business of Summa Health

Rhea-AI Summary

Quest Diagnostics (NYSE: DGX) has announced a definitive agreement to acquire select assets of Summa Health's LabCare Plus outreach laboratory services in an all-cash transaction. This acquisition aims to broaden access to innovative, quality laboratory services in Ohio, enhancing care affordability. Post-transaction, Quest will provide testing through its labs in Twinsburg and Pittsburgh, while Summa will maintain its hospital labs. The transaction, expected to close in Q4 2022, follows a competitive bid process, though financial details remain undisclosed.

Positive

• Expansion of Quest's laboratory services in Ohio, enhancing patient access to innovative testing.
• Potential for improved health outcomes due to advanced laboratory capabilities.
• Strengthened market position in Ohio by collaborating with a local healthcare provider.

Negative

• None.

Transaction to broaden access to innovative, quality diagnostic information services powering affordable care in Ohio

SECAUCUS, N.J., and AKRON, Ohio, Oct. 5, 2022 /PRNewswire/ -- Quest Diagnostics (NYSE: DGX), the world's leading provider of diagnostic information services, and Summa Health, a large integrated healthcare delivery system in Ohio, today announced a definitive agreement for Quest to acquire select assets of Summa Health's outreach laboratory services business, referred to as LabCare Plus, in an all-cash transaction.

The aim of the transaction is to broaden access to innovative, quality and cost-effective laboratory services powering affordable care for communities in Ohio. Under the agreement, Quest's laboratories in Twinsburg, Ohio, and Pittsburgh will provide testing for physicians and patients serviced by LabCare Plus. Summa Health will continue to wholly own and operate its hospital labs providing laboratory services for inpatient and hospital-based outpatient care, along with its anatomic pathology services.

Assuming the transaction's completion, physicians and patients throughout Ohio will benefit from access to Quest's industry-leading and highly innovative test menu, broad health plan coverage, network of patient access sites throughout the state, and lower out-of-pocket costs for many services.  

"Laboratory services are a critical and fast-evolving area of healthcare. As the nation's leader, Quest has the expertise, agility and breadth of innovation to deliver the enhanced capabilities that physicians and patients increasingly expect," said Ben Sutton, Chief Strategy Officer and President of Ambulatory Care and Clinical Service Lines for Summa Health. "With this relationship, patients and providers in Ohio will benefit from access to advanced laboratory capabilities supporting better health outcomes."  

"Diagnostics provide the insights to deliver healthcare that is both high quality and high value. By helping top health systems like Summa Health optimize their lab strategies, Quest empowers better health and affordable care for more patients," said Steve Rusckowski, Quest Diagnostics Chairman, CEO and President. "We look forward to extending our reach to more communities in Ohio as we strive to build a healthier world."

Summa Health selected Quest Diagnostics following a competitive bid. The parties expect to complete the transaction in the fourth quarter of 2022, subject to customary regulatory approvals. Financial details of the transaction were not disclosed.

About Summa Health
Summa Health is one of the largest integrated healthcare delivery systems in Ohio. Encompassing a network of hospitals, community medical centers, a health plan, an accountable care organization, a multi-specialty physician organization, research and the Summa Health Foundation, we are nationally renowned for excellence in patient care and for exceptional approaches to healthcare delivery. Summa's clinical services are consistently recognized by the American Nurses Credentialing Center (Magnet status), U.S. News and World Report, Healthgrades, Thomson Reuters and The Leapfrog Group. For more information, visit summahealth.org or find us on Facebook, Twitter, Pinterest and LinkedIn.

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 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.

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SOURCE Quest Diagnostics

FAQ

What is the purpose of Quest Diagnostics acquiring LabCare Plus?

The acquisition aims to broaden access to innovative and cost-effective laboratory services in Ohio, enhancing affordable care.

When is Quest Diagnostics expected to complete the acquisition of LabCare Plus?

The transaction is expected to close in the fourth quarter of 2022, pending customary regulatory approvals.

What are the benefits to patients and physicians from Quest Diagnostics' acquisition?

Patients and physicians in Ohio will benefit from Quest's advanced test menu, extensive health plan coverage, and lower out-of-pocket costs.

Who were the parties involved in the acquisition agreement?

The acquisition agreement is between Quest Diagnostics and Summa Health.

How will Quest Diagnostics enhance its laboratory services in Ohio after the acquisition?

Quest will provide testing through its labs in Twinsburg and Pittsburgh, increasing access to advanced laboratory capabilities.