CHS expands laboratory access through sale to Labcorp in multi-state deal

CHS/Community Health Systems, Inc. (CHS), a subsidiary of Community Health Systems, Inc. has sold certain aspects of their ambulatory outreach laboratory services to Labcorp, according to an announcement. This transaction affects “CHS-affiliated health systems in 13 states, including certain patient service centers and in-office phlebotomy locations.”

The goal of this action is to expand access to Lapcorp’s laboratory offerings. The transaction is valued at $194 million in cash before transaction costs. Community Health Systems noted that the impacted health systems will still run the laboratories in their inpatient and emergency departments. They will administer certain testing and imaging services. Both Kevin Hammons, President/Interim Chief Executive Officer of Community Health Systems, Inc. and Mark Schroeder, President of Labcorp Diagnostics/Chief Operations Officer expressed excitement over the acquisition in press statements. Both executives emphasized how the transaction will improve patient care and experience.