Mercy has agreed to sell its Outreach Laboratory Services business to Quest Diagnostics
March 9, 2021
Quest Diagnostics (NYSE: DGX), the leading provider of diagnostic information services, and Mercy, one of the nation’s most highly integrated, multi-state health care systems, announced a definitive agreement for Quest to acquire the outreach laboratory services business of Mercy in an all-cash asset transaction.
Cain Brothers was engaged to serve as Mercy’s advisor based on its deep domain expertise and strong relationships in the health system and laboratory services sectors.
The Mercy outreach lab services business currently operates from 29 hospital laboratories and two independent clinic laboratories serving providers and patients in Arkansas, Kansas, Missouri and Oklahoma. With this transaction, physicians and patients across the four states will benefit from access to Quest’s industry-leading and highly innovative test menu, a larger network of conveniently located patient service centers, broad health plan coverage and competitive pricing. Mercy selected Quest based on several factors, including Quest’s commitment to quality, innovation, cost efficiencies, patient care and the shared commitment to assisting underserved communities.
Mercy, named one of the top five large U.S. health systems for four consecutive years by IBM Watson Health, serves millions annually. Mercy is one of the nation’s most highly integrated, multi-state health care systems, including more than 40 acute care, managed and specialty (heart, children’s, orthopedic and rehab) hospitals, convenient urgent care locations, imaging centers and pharmacies. Mercy has 900 physician practices and outpatient facilities, more than 4,000 Mercy Clinic physicians and advanced practitioners and 40,000-plus co-workers serving patients and families across Arkansas, Kansas, Missouri and Oklahoma. Mercy also has clinics, outpatient services and outreach ministries in Arkansas, Louisiana, Mississippi and Texas. In addition, Mercy’s IT division, Mercy Technology Services, and Mercy Virtual commercially serve providers and patients from coast to coast.
Quest Diagnostics empowers people to take action to improve health outcomes. Derived from the world’s largest database of clinical lab results, our diagnostic insights reveal new avenues to identify and treat disease, inspire healthy behaviors and improve health care management. Quest annually serves one in three adult Americans and half the physicians and hospitals in the United States, and our 50,000 employees understand that, in the right hands and with the right context, our diagnostic insights can inspire actions that transform lives.