Health systems continue to restructure and shuffle operations to reduce costs, with some selling laboratory assets to reduce their workforces, expand lab partnerships or in exchange for a valuable cash infusion.
Labcorp said it sees hospital lab acquisitions as a key growth opportunity, with more health systems considering selling their lab businesses or signing management agreements.
Here are three health systems planning to sell their lab assets to Labcorp:
1. Portland, Ore.-based Legacy Health inked a tentative deal to sell its lab operations to Labcorp. The company said it will acquire "select assets" of Legacy's lab business, including facilities and equipment, and will also manage the system's inpatient hospital labs through a long-term agreement to provide staffing, leadership, supply chain services and other support. The deal is not expected to result in any layoffs, but about 700 Legacy employees will join Labcorp.
2. Philadelphia-based Jefferson Health is offloading select assets of its outreach laboratory services to Labcorp, but will continue to own and operate its existing hospital labs for outpatient and inpatient services. Labcorp said the deal aims to expand the scope and productivity of specialty lab testing retained by Jefferson and further the academic and research missions of Thomas Jefferson University.
3. Boston-based Tufts Medicine is selling its outreach lab business to Labcorp as the first step towards a broader partnership. Tufts is aiming for a partnership with Labcorp to expand diagnostics and provide a single source option for patients and providers.
Financial details of the transactions were not disclosed.