Quest Acquires UMass Memorial Lab
UMass Memorial Health Care has found a buyer for its clinical outreach laboratory, which saw its surplus turn negative last year after years of profitability.
New Jersey-based Quest Diagnostics has signed an agreement to purchase the laboratory business for an undisclosed sum. The sale is expected to close in the next three months.
It's the second business division UMass has shed this year. It sold its home health care business in June.
Though it's selling its lab-testing arm, UMass will continue to be involved in the business under a partnership with Quest's Cambridge laboratory and its Athena Diagnostics neurology testing subsidiary. UMass could buy a financial stake in the new entity, which could amount to a long-term business relationship, UMass said.
Quest will establish a yet-unannounced location in Central Massachusetts. That process will take up to two years, and UMass said more details will be announced as they are finalized.
UMass Memorial CEO John O'Brien said the partnership is what's needed in the evolving health care landscape.
"We believe our new relationship with Quest Diagnostics will bring together the best of both of our lab organizations and is exactly the innovation that is necessary to successfully navigate through the dynamic and changeable health care landscape for the benefit of all the patients and families in Massachusetts," O'Brien said.
Quest CEO Steve Rusckowski said the arrangement will help the organizations deliver better health care.
"This relationship is a model for hospitals and health care systems, given the reality of increasing pressure on reimbursement and utilization," he said.
Quest, which is traded on the New York Stock Exchange, said the acquisition is not expected to impact earnings in 2013.
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