Quest to acquire outreach lab services from Mercy

March 9, 2021

Quest Diagnostics, and Mercy, a multi-state healthcare system, announced a definitive agreement for Quest to acquire the outreach laboratory-services business of Mercy, based in Metairie, LA, in an all-cash asset transaction, according to a news release.

The Mercy outreach lab-services business currently operates from 29 hospital laboratories and two independent clinic laboratories serving providers and patients in Arkansas, Kansas, Missouri and Oklahoma. Under the agreement, testing associated with outreach lab services will transition to the Quest Diagnostics full-service laboratory in Lenexa, KS, and a network of rapid response laboratories across the region. Mercy will continue to wholly own and operate its hospital labs for tests connected to inpatient and hospital-based outpatient care needs.

“This relationship gives our patients and providers more convenient locations for sample collection and a significantly lower cost of testing while maintaining the same high quality patients and providers need,” said Lynn Britton, president and CEO, Mercy.

Mercy selected Quest Diagnostics based on several factors, including Quest Diagnostics’ commitment to quality, innovation, cost efficiencies and patient care. Another factor was Mercy and Quest’s shared commitment to assisting underserved communities.

The parties expect to complete the transaction in the second quarter of 2021, subject to customary regulatory approvals. Financial details of the transaction were not disclosed.

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