Dive Brief:
- Community Health Systems on Tuesday sold some of its ambulatory outpatient laboratory services to Labcorp for approximately $194 million in cash before transaction expenses.
- The deal includes assets in 13 states, including patient service centers and in-office phlebotomy locations, according to a press release from CHS.
- CHS will continue to operate its inpatient and emergency department labs and provide lab services for imaging, pre-admission testing and other hospital-based services.
Dive Insight:
The companies say the deal, which was first announced in July, will benefit patients by giving them broader access to Labcorp’s services, including its specialty testing menu, suite of data analytics and digital tools.
It also allows CHS to refocus on its core offerings, said CHS President and interim CEO Kevin Hammons in a press release.
“Completing this transaction with Labcorp allows our health systems to focus on core services and improve the overall patient experience, aligning with our unwavering commitment to providing high-quality, accessible healthcare to our communities,” said Hammons.
CHS has been realigning its portfolio to focus on revenue-generating services, including outpatient care. The for-profit operator has divested numerous acute care hospitals, including facilities in North Carolina and Mississippi. The operator is currently working on closing deals to sell three hospitals in Pennslyvania and a facility in Tennessee.
Meanwhile, Labcorp is expanding.
Labcorp paid about $839 million last year to acquire clinical and outreach businesses including Baystate Medical Center, Providence Medical Foundation, Westpac Labs, Invitae and BioReference Health. In 2023, the company spent approximately $671.5 million on acquisitions.
