SECAUCUS, N.J. – Quest Diagnostics (NYSE: NYSE:DGX), a prominent diagnostic information services provider, has entered into a definitive agreement to acquire select assets of the outreach laboratory services business from University Hospitals, a leading health system based in Ohio. This move aims to enhance access to Quest's extensive test menu and network of patient access sites across Ohio.
The acquisition is anticipated to be finalized in the fourth quarter of 2024, pending customary regulatory approvals. Financial details of the deal were not disclosed.
Cliff A. Megerian, MD, Chief Executive Officer of University Hospitals, expressed confidence in the partnership with Quest, highlighting the importance of maintaining efficient operations and quality services while improving patient access. Jim Davis, CEO of Quest Diagnostics, noted that health systems like University Hospitals are increasingly looking to optimize lab services through partnerships to focus more on patient care.
Quest Diagnostics is known for providing insights from laboratory testing to support healthcare decisions. The company serves one in three adult Americans and half of the nation's physicians and hospitals. University Hospitals, established in 1866, offers patient care through its extensive network in northern Ohio, including a flagship academic medical center and various specialty hospitals and outpatient facilities.
The collaboration between Quest Diagnostics and University Hospitals is set to expand Quest's presence in Ohio, where it will leverage its capabilities in laboratory services to support patient care and operational efficiency.
This article is based on a press release statement.
In other recent news, Quest Diagnostics has been making significant strides in the market. The company's second quarter of 2024 saw total revenue increase by 2.5% to $2.99 billion, largely driven by strategic acquisitions like LifeLabs, select lab assets of Allina Health, outreach lab assets of OhioHealth, and PathAI Diagnostics. These acquisitions are part of Quest Diagnostics' strategy to expand in growth areas and leverage digital pathology and AI in cancer diagnosis.
Quest Diagnostics has also updated its full-year 2024 financial guidance, projecting revenues to be between $9.5 billion and $9.58 billion. The reported EPS is expected to range from $7.57 to $7.77, while the adjusted EPS is projected to be between $8.80 and $9.00. Mizuho has maintained an Outperform rating on the company, raising the price target to $160 from $155 following these robust results.
The company has also announced a global collaboration with BD (Becton, Dickinson and Company) to develop flow cytometry-based companion diagnostics (CDx), aimed at enhancing treatment selection for cancer patients and those with other diseases. This partnership combines BD's expertise in flow cytometry with Quest Diagnostics' experience in biomarker development and assay validation. These recent developments highlight Quest Diagnostics' commitment to growth and innovation in the healthcare diagnostics market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.