Quest Diagnostics To Buy Select Assets Of Memorial Hermann
Zacks Investment Research | Jan 28, 2020 06:34AM ET
Quest Diagnostics (NYSE:DGX) recently signed a multi-pronged, long-term definitive deal to acquire select assets of Memorial Hermann Health System, one of the largest not-for-profit health systems in Southeast Texas. However, the financial terms of the deal have been kept under wraps.
According to Quest Diagnostics, this is a step forward in its commitment toward offering high-quality, cost-efficient diagnostic services in Texas, especially in the Houston metropolitan area.
Per the terms of the deal, the assets that will be acquired comprise all operations of Memorial Hermann Diagnostic Laboratories (“MHDL”), the outreach laboratory segment of Memorial Hermann. Nearly 30 MHDL patient service centers and 60 in-office laboratory service sites will be acquired by the company. This implies that these services will shift to the Quest Diagnostics full-service laboratory in Houston.
We note that Memorial Hermann Health comprises a network of 17 hospitals and more than 300 care delivery sites in the Greater Houston region.
More About the Deal
After completion of the deal, Quest Diagnostics will be offering professional laboratory management services for all of Memorial Hermann's 21 hospital laboratories, which specialize in offering onsite rapid response testing. Apart from this, Quest Diagnostics will become the sole preferred provider of laboratory services for the Memorial Hermann Health Plan.
Physicians and patients will be benefiting from access to Quest Diagnostics’ market-leading test menu and broad health plan coverage as well as an expanded community of nearly 80 patient services centers throughout Houston.
Subject to customary regulatory approvals, the transaction is expected to be completed within the second quarter of 2020.
Recent Development
In December 2019, Quest Diagnostics acquired select assets of the clinical laboratory services business segment of Boston Clinical Laboratories (“BCL”), a Waltham-based regional provider of laboratory services. BCL’s patients and providers now have access to Quest Diagnostics’ expanded range of diagnostic services, a broader network of patient service centers as well as an array of unique tools, such as the company’s Quanum portfolio of healthcare information technologies and data analytics.
Price Performance
In the past year, the company’s shares have outperformed the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.