Secaucus-based Quest Diagnostics said Tuesday that it will acquire Birmingham, Alabama-based Pack Health in an all-cash equity transaction.
Pack Health is a patient-engagement company that helps individuals adopt healthier behaviors to improve outcomes.
Financial terms of the deal were not disclosed.
Pack Health specializes in comprehensively addressing chronic conditions and comorbidities that are influenced by mental health, lifestyle behaviors, access to care and social determinants of health.
The acquisition is expected to close in the first quarter of 2022.
“By adding the Pack Health platform to our Extended Care services, Quest will strengthen our ability to connect diagnostic insights to actions that generate greater value, outcomes and quality, empowering affordable care,” said Steve Rusckowski, chairman, CEO and president, Quest Diagnostics. “This transaction also builds on our growing expertise in addressing social determinants of health, such as through our Quest for Health Equity initiative, and other programs that help organizations deliver value-based care.”
The acquisition builds on Quest’s 2018 acquisition of MedXM, now Quest HealthConnect, a provider of in-person home-based risk assessment and monitoring services that supplement care delivered in clinical settings. Over time, Quest expects to create new services from these diverse capabilities.
Approximately 90% of the nation’s annual health care expenditures are for people with chronic and mental health conditions, according to the Centers for Disease Control. Many of these diseases, including diabetes and heart disease, can be delayed or prevented if caught and addressed early. SDOH can influence early disease detection and management. In August 2020, Quest Diagnostics and its Quest Diagnostics Foundation announced Quest for Health Equity, a $100 million initiative to address and reduce health disparities in underserved communities. The company also helps communities access diagnostic services through a national network of relationships with federally qualified health care organizations.
“This next chapter with Quest Diagnostics will provide Pack Health with the scale, resources and expertise needed to further our growth prospects and enhance our capabilities to improve patient care,” said Mazi Rasulnia, founder of Pack Health. “Quest’s outstanding reputation in providing actionable diagnostic insights made our choice clear as we look to continually improve our services for our members.”
