US-based clinical laboratory company Quest Diagnostics has agreed to buy certain assets belonging to not-for-profit health system OhioHealth's outreach laboratory services business.
The acquisition will give patients and providers in Ohio access to Quest Diagnostics' extensive test menu, network of patient service sites and broad health plan coverage, as well as reduce out-of-pocket costs for many services.
Through this, Quest Diagnostics aims to increase access to and affordability of laboratory services in Ohio.
The financial terms of the deal have not been disclosed.
Following the deal, most of the outreach testing currently conducted by OhioHealth will shift to Quest Diagnostics' full-service laboratory in Pittsburgh, Pennsylvania.
OhioHealth will retain ownership and operation of its hospital labs, focusing on inpatient and hospital-based outpatient care, including anatomic pathology and oncology services.
The deal is expected to close in the third quarter of this year subject to regulatory approvals.
OhioHealth Regional Market President Chris Clinton said: "As healthcare transforms, we need to ensure we can continue to provide high-quality care to our patients that also provides them value.
"Quest has the specialisation and scale to ensure our patients have continued access to high quality lab services that, in many cases, will be more affordable for patients.
"Our relationship with Quest is the right strategic step to enable us to continue to deliver exceptional care to improve the health of those we serve."
Quest Diagnostics chairman, CEO and president Jim Davis SAID: "Health systems are increasingly turning to Quest because of our unique ability to deliver laboratory testing that is innovative, accessible and cost effective.
"This transaction also delivers on our strategy, which includes generating growth through accretive outreach lab acquisitions, and will extend our presence across Ohio."
OhioHealth’s network includes 35,000 associates, physicians and volunteers working across 15 hospitals and numerous other health services over a 50-county area.
