SECAUCUS, N.J., and
ST. LOUIS, March 8, 2021 /PRNewswire/ -- Quest
Diagnostics (NYSE: DGX), the leading provider of diagnostic
information services, and Mercy, one of the nation's most highly
integrated, multi-state health care systems, today announced a
definitive agreement for Quest to acquire the outreach laboratory
services business of Mercy in an all-cash asset transaction. The
aim of the transaction is to broaden access to innovative, quality
and cost-effective laboratory services to deliver affordable
patient care throughout the Midwest.
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, Kansas, 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.
Assuming the transaction's completion, physicians and patients
across the four states will benefit from access to Quest's
industry-leading and highly innovative test menu, a larger network
of conveniently located patient service centers, broad health plan
coverage and competitive pricing.
"Mercy chose Quest to provide outreach lab testing because of
its record of innovation and efficiency and our shared commitment
to providing high-quality, convenient care that is accessible to
all," said Lynn Britton, president
and CEO, Mercy. "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."
"As one of the country's leading large health systems, Mercy is
exiting the physician lab outreach business to sharpen its focus on
providing high-quality, equitable care," said Steve Rusckowski, Quest Diagnostics Chairman,
CEO and President. "We look forward to working closely with Mercy
to support their lab strategy. As pressures from the pandemic ease,
and customer expectations and reimbursement pressures rise, we are
talking to more and more top health systems about how Quest can
help them enhance the effectiveness of their lab strategies."
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: In
2020, Quest Diagnostics, through its foundation, pledged to invest
more than $100 million to address
racial disparities in healthcare through its Quest for Health
Equity initiative.
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.
About Mercy
Mercy, named one of the top five large
U.S. health systems for four consecutive years by IBM Watson
Health, serves millions annually. Mercy is one of the nation's most
highly integrated, multi-state health care systems, including more
than 40 acute care, managed and specialty (heart, children's,
orthopedic and rehab) hospitals, convenient urgent care locations,
imaging centers and pharmacies. Mercy has 900 physician practices
and outpatient facilities, more than 4,000 Mercy Clinic physicians
and advanced practitioners and 40,000-plus co-workers serving
patients and families across Arkansas, Kansas, Missouri and Oklahoma. Mercy also has clinics, outpatient
services and outreach ministries in Arkansas, Louisiana, Mississippi and Texas. In addition, Mercy's IT division, Mercy
Technology Services, and Mercy Virtual commercially serve providers
and patients from coast to coast.
About Quest Diagnostics
Quest Diagnostics empowers
people to take action to improve health outcomes. Derived from the
world's largest database of clinical lab results, our diagnostic
insights reveal new avenues to identify and treat disease, inspire
healthy behaviors and improve health care management. Quest
annually serves one in three adult Americans and half the
physicians and hospitals in the United
States, and our 50,000 employees understand that, in the
right hands and with the right context, our diagnostic insights can
inspire actions that transform lives.
www.QuestDiagnostics.com.
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SOURCE Quest Diagnostics