Quest Diagnostics, Secaucus, NJ, and Mercy, a multi-state healthcare system based in St. Louis, announced a definitive agreement for Quest to acquire the outreach laboratory services business of Mercy in an all-cash asset transaction. The aim of the transaction is to broaden access to innovative, quality and cost-effective laboratory services to deliver affordable patient care throughout the Midwest. 

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. Under the agreement, testing associated with outreach lab services will transition to the Quest Diagnostics full-service laboratory in Lenexa, Kansas, and a network of rapid response laboratories across the region. Mercy will continue to wholly own and operate its hospital labs for tests connected to inpatient and hospital-based outpatient care needs. 

Assuming the transaction’s completion, 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 chose Quest to provide outreach lab testing because of its record of innovation and efficiency and our shared commitment to providing high-quality, convenient care that is accessible to all,” says Lynn Britton, president and CEO, Mercy. “This relationship gives our patients and providers more convenient locations for sample collection and a significantly lower cost of testing while maintaining the same high-quality patients and providers need.” 

“As one of the country’s leading large health systems, Mercy is exiting the physician lab outreach business to sharpen its focus on providing high-quality, equitable care,” says Steve Rusckowski, Quest Diagnostics chairman, CEO, and president. “We look forward to working closely with Mercy to support their lab strategy. As pressures from the pandemic ease, and customer expectations and reimbursement pressures rise, we are talking to more and more top health systems about how Quest can help them enhance the effectiveness of their lab strategies.” 

For more information, visit Quest Diagnostics and Mercy