Partnership will create 100,000-square-foot state-of-the-art laboratory facility in Southfield, with Quest managing Corewell’s 21 hospital labs statewide.
Corewell Health and Quest Diagnostics have signed a definitive agreement to form a joint venture that will expand laboratory services across Michigan through a new state-of-the-art facility and management of existing hospital labs.
The joint venture, Diagnostic Lab of Michigan LLC, will operate from a 100,000-square-foot laboratory facility at the Corewell Health Southfield Center. The future facility will feature advanced technologies including automated microbiology and high-throughput molecular testing capabilities.
Under the agreement, Quest will provide its full Collaborative Lab Solutions services for all of Corewell Health’s 21 inpatient and outpatient hospital laboratories across Michigan. These services include reference laboratory testing, professional laboratory management, laboratory workforce and supply chain management, and analytics. The existing hospital labs will remain operational after the new facility opens.
“We are thrilled to collaborate with Quest Diagnostics, a leader in diagnostic lab services,” says Chad Tuttle, Corewell Health chief operating officer, in a release. “Quest has a proven track record of delivering innovative and high-quality diagnostic services that put patients first. This new joint venture will support our ongoing efforts to make health care more affordable and accessible.”
Ownership Structure and Timeline
Quest will hold 51% equity ownership in the joint venture, with Corewell Health maintaining 49%. The transaction meets Quest’s criteria for growth, profitability, and returns, though additional financial terms were not disclosed.
The parties expect to complete the joint venture transaction in the first quarter of 2026, with some supply chain and reference agreements beginning in late 2025. Most laboratory services agreements, including laboratory management, will commence in 2026. The new laboratory facility is expected to be operational by the first quarter of 2027.
“This joint venture combines Corewell Health’s first-rate academic expertise and deep ties to Michigan with Quest’s leadership in scaling diagnostic innovation to improve access, affordability, and patient care,” says Jim Davis, chairman, CEO and president of Quest Diagnostics, in a release. “It also advances Quest’s strategy to expand in growth areas through collaborations with top health systems, building on our many successful laboratory joint ventures in other parts of the US.”
Continued Operations During Transition
During the transition period, Quest and Corewell Health will continue serving providers and patients in Michigan from their existing patient service centers, which will be operated by the joint venture, as well as from existing laboratories until the new facility opens.
Corewell Health operates as a not-for-profit health system with more than 65,000 employees, including over 12,000 physicians and advanced practice providers. The system includes 21 hospitals, more than 300 outpatient locations, and Priority Health, which serves over 1.3 million members.
ID 84727112 © Elena Titova | Dreamstime.com
