Dive Brief:
- Labcorp has struck a deal to buy non-emergent outreach laboratory service assets from Parkview Health.
- The takeover, announced Thursday, will put Labcorp in charge of providing laboratory services to Parkview patients in Indiana and northwest Ohio, leveraging both local assets and its national network of sites.
- Labcorp and rival Quest Diagnostics have penned a series of similar deals in recent years to drive growth by consolidating outreach labs and regional testing companies.
Dive Insight:
Parkview runs 15 hospitals and a network of primary care and specialty care physicians in Indiana and northwest Ohio. In recent years, the health system has sought to ensure access to care and control costs by partnering with national providers of home health and ambulatory surgical services. The deal with Labcorp extends Parkview’s reliance on national partners to certain laboratory services.
Labcorp is taking over providing non-emergent lab services to Parkview patients. The health system will continue to rely on labs inside its hospitals to serve patients with emergency and acute care needs.
Ray Dusman, president of physician and clinical enterprise at Parkview, said in a statement the deal will give the health system’s patients “broader access to cost-effective, high-quality laboratory services.” The companies expect to close the deal next year. Lab operations and services will continue as usual until the takeover closes.
Labcorp’s press release did not disclose the financial terms of the deal. The company spent $324 million in cash on acquisitions in the first nine months of 2025. In that time, Labcorp closed deals to buy a 15% stake in Europe’s Synlab for $151.6 million and acquire BioReference Health’s oncology diagnostics businesses for an initial $192.5 million.
The company also agreed to buy outreach assets from Community Health Systems for $195 million and clinical lab assets from Empire City Laboratories for an initial $165 million. The CHS deal covers 13 states, while the Empire City agreement will expand Labcorp’s presence in the New York tri-state area.
Labcorp struck the deals as part of its strategy to derive 1.5% to 2.5% of annual growth from acquisitions. Deals added 1.7% to growth in the third quarter, resulting in a total revenue increase of 8.6%. While the timing of deals contributed to a decision to lower full-year guidance, Labcorp CEO Adam Schechter said on an earnings call in October that some takeovers just “closed a little bit later than what we anticipated.”
The company continues to see dealmaking opportunities. Barclays analyst Anna Kruszenski said on the earnings call that “it sounds like the hospital M&A pipeline has reaccelerated given all the macro and policy uncertainty.” In response, Schechter said, “The hospital pipeline does remain strong, and I expect it to continue to be strong.”
