Portland, Ore.-based Legacy Health has completed the sale of its outreach laboratory operations to Labcorp in a restructuring move aimed at improving the system's financial health.
Labcorp acquired select assets of Legacy's outreach laboratory business and now manages the system's inpatient hospital laboratories through a long-term agreement to provide staffing, leadership, scientific knowledge, analytics, supply chain services and laboratory support, according to a Nov. 20 Labcorp news release.
The Oregonian reported in July when the deal was first announced that about 700 Legacy employees would be joining Labcorp. The six-hospital system ended 2022 with a $114.8 million operating loss. It is now losing $10 million a month, according to the report, and has had to dip into its cash reserves — a key reason for the Labcorp deal.
"This is Legacy's financial crisis," Kecia Kelly, chief nursing officer and senior vice president, told The Oregonian in July.
Legacy continues to maintain ownership and licensure of its hospital laboratories, according to the release.
The deal with Legacy is one of several Labcorp has recently made with health systems. Philadelphia-based Thomas Jefferson University, owner of Jefferson Health, completed the sale of its lab business to Labcorp in August. Boston-based Tufts Medicine announced in August it was also selling its outreach lab business to Labcorp.