Quest Diagnostics announced Wednesday that it has reached a definitive agreement to acquire select assets of the outreach laboratory services business of Summa Health, a large, integrated health care delivery system in Ohio.
Terms of the all-cash deal were not disclosed.
Quest officials said the aim of the transaction is to broaden access to innovative, quality and cost-effective laboratory services powering affordable care for communities in Ohio.
Quest, based in Secaucus, is one of the world’s leading providers of diagnostic information services.
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.
Quest CEO Steve Rusckowski said the acquisition is a win-win.
“Diagnostics provide the insights to deliver health care that is both high quality and high value,” he said. “By helping top health systems like Summa Health optimize their lab strategies, Quest empowers better health and affordable care for more patients.
“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, subject to customary regulatory approvals.
Ben Sutton, chief strategy officer and president of ambulatory care and clinical service lines for Summa Health, applauded the announcement.
“Laboratory services are a critical and fast-evolving area of health care,” he said. “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.
“With this relationship, patients and providers in Ohio will benefit from access to advanced laboratory capabilities supporting better health outcomes.”