Community Health assets to be acquired by Labcorp for a sum of $195 million
Labcorp, one of the world's leading diagnostics companies, has announced its latest acquisition in the outreach lab services sector. The company has agreed to acquire certain ambulatory outreach laboratory assets from Community Health Systems for $195 million in cash.
The deal, which is expected to close in the fourth quarter, includes patient service centers and in-office phlebotomy locations in 13 states. This acquisition is part of Labcorp's expansion push that has seen the testing services provider forge deals with a growing list of local and national health systems.
The COVID-19 pandemic has accelerated the trend of health systems looking to outsource lab services to offset financial pressures and staffing shortages. Labcorp and its chief rival Quest Diagnostics have stepped up collaborations with health systems in this regard.
In a larger deal, Labcorp acquired certain assets of hospital chain Ascension's outreach laboratory business for about $400 million in 2022. Last year, Labcorp spent approximately $671.5 million on acquisitions. In April 2024, the company acquired the assets of Invitae for $239M.
It's important to note that Community Health will continue to operate its inpatient and emergency department labs and provide lab services for imaging, preadmission testing, and other hospital-based services. This means that the acquisition focuses on outreach lab services, which include testing for doctors' offices and other locations outside of the hospital.
Evercore ISI analyst Elizabeth Anderson called the deal "very much in-line with [Labcorp's] long-stated hospital management and outreach strategy." The acquisition also involves Labcorp assuming some facility leases as part of the agreement.
Labcorp's latest acquisition is not the first in the outreach lab services sector this year. In December 2024, Labcorp closed a takeover of Ballad Health outreach laboratory services. The company continues to consolidate its position in the market, providing comprehensive diagnostic solutions to a wider range of healthcare providers.
As always, for the most current and specific information about Labcorp's recent acquisitions in this sector, it would be best to consult Labcorp's official press releases or financial news sources directly.
- Labcorp, in its expansion push, has agreed to acquire certain ambulatory outreach laboratory assets from Community Health Systems for $195 million in cash.
- This acquisition, which focuses on outreach lab services, includes patient service centers and in-office phlebotomy locations in 13 states.
- The deal is part of Labcorp's strategy to forge deals with a growing list of local and national health systems.
- In a larger deal, Labcorp acquired certain assets of hospital chain Ascension's outreach laboratory business for about $400 million in 2022.
- Evercore ISI analyst Elizabeth Anderson called the deal "very much in-line with [Labcorp's] long-stated hospital management and outreach strategy."
- Labcorp's latest acquisition is not the first in the outreach lab services sector this year; in December 2024, Labcorp closed a takeover of Ballad Health outreach laboratory services.
- It's important to note that Community Health will continue to operate its inpatient and emergency department labs, exemplifying the distinction between hospital-based and outreach lab services.
