The ink has dried on the merger deal between Quest Diagnostics and select assets of University Hospitals, one of the nation’s leading nonprofit health systems and academic medical centers. Financial terms were not disclosed.
“Top health systems like University Hospitals are transitioning their laboratory services to Quest in order to improve operating efficiency and ensure continued access to affordable care,” Quest Diagnostics Chairman, CEO, and President Jim Davis said in a statement on Monday (Jan. 27).
“Our specialization and scale empower us to optimize lab services for quality, innovation and affordability, enabling health systems to dedicate more resources to clinical patient care. We look forward to extending our presence in the many communities in Ohio that can benefit from our expertise,” Davis said.
The world’s leading provider of diagnostic information services, Quest acquired 24 companies last year with the average deal totaling $490 million. This latest investment broadens access to its industry-leading and innovative test menu plus a network of convenient patient access sites, Quest said in a statement.
“Laboratory testing is a critical and increasingly complex area of healthcare and Quest is a trusted name in laboratory services known for high quality and innovation,” said University Hospitals CEO, Jane and Henry Meyer CEO Cliff A. Megerian, MD, FACS
“We look forward to a collaboration with Quest that will maintain streamlined and efficient operations, quality and breadth of menu while enhancing access for our patients,” Megerian said.
For University Hospitals providers and patients using Quest for lab services, Quest’s laboratories in Twinsburg, Ohio and Pittsburgh, Pennsylvania will perform the testing. University Hospitals will continue to provide all inpatient and select outpatient testing from its hospital-based labs.
“Hospital lab acquisitions are a key growth opportunity for lab companies as more health systems consider selling their lab businesses or signing management agreements. Over the past year, several health systems have sold lab assets to Quest Diagnostics or Labcorp, including Philadelphia-based Jefferson Health, Minneapolis-based Allina Health and Boston-based Tufts Medicine,” Beckers Hospital Review CFO Report.
About Quest Diagnostics
Quest Diagnostics works across the healthcare ecosystem to create a healthier world, one life at a time. We provide diagnostic insights from the results of our laboratory testing to empower people, physicians and organizations to take action to improve health outcomes.
Derived from one of the world’s largest databases of de-identifiable clinical lab results, Quest’s diagnostic insights reveal new avenues to identify and treat disease, inspire healthy behaviors and improve healthcare management.
Quest Diagnostics annually serves one in three adult Americans and half the physicians and hospitals in the United States, and our more than 50,000 employees understand that, in the right hands and with the right context, our diagnostic insights can inspire actions that transform lives and create a healthier world. www.QuestDiagnostics.com.
About University Hospitals / Cleveland, Ohio
Founded in 1866, University Hospitals serves the needs of patients through an integrated network of more than 20 hospitals (including five joint ventures), more than 50 health centers and outpatient facilities, and over 200 physician offices in 16 counties throughout northern Ohio. The system’s flagship quaternary care, academic medical center, University Hospitals Cleveland Medical Center, is affiliated with Case Western Reserve University School of Medicine, Northeast Ohio Medical University, Oxford University, Taiwain University and the Technion Israel Institute of Technology.
The main campus also includes the UH Rainbow Babies & Children’s Hospital, ranked among the top children’s hospitals in the nation; UH MacDonald Women’s Hospital, Ohio’s only hospital for women; and UH Seidman Cancer Center, part of the NCI-designated Case Comprehensive Cancer Center. UH is home to some of the most prestigious clinical and research programs in the nation, with more than 3,000 active clinical trials and research studies underway. UH Cleveland Medical Center is perennially among the highest performers in national ranking surveys, including “America’s Best Hospitals” from U.S. News & World Report. UH is also home to 19 Clinical Care Delivery and Research Institutes. UH is one of the largest employers in Northeast Ohio with more than 30,000 employees. Follow UH on LinkedIn, Facebook and Twitter. For more information, visit UHhospitals.org.