NEW YORK – Laboratory Corporation of America said Wednesday that it is acquiring outreach laboratory assets from Philadelphia- and New Jersey-area healthcare provider Jefferson Health.
Labcorp and Jefferson, the hospital system for Thomas Jefferson University, said the deal will advance testing capabilities and technologies, improve healthcare services for underserved communities, and expand academic collaborations related to teaching and the development of innovative tests. Labcorp and Jefferson also plan to establish a program dubbed Innovation Driving Excellence in Academics intended to advance testing capabilities and technologies.
The deal is expected to close by midyear 2023. Financial and other terms of the deal were not disclosed.
Jefferson will continue to own and operate its existing outpatient and inpatient hospital labs.
Labcorp officials said in February they saw hospital lab acquisitions as an opportunity for growth and they had seen a rising number of entities interested in selling their lab businesses or entering management agreements.
Labcorp Chief Medical Officer Brian Caveney said in a statement that the firm looks forward to helping continue Jefferson's decades-long delivery of healthcare services by delivering a "complementary and comprehensive suite of laboratory services."
"We are also looking forward to collaborating on future research and innovations aimed at improving health outcomes for all people," he said.
Jefferson CEO Joseph Cacchione said, "This strategic relationship enables Jefferson to leverage Labcorp's wide range of laboratory services, which will help deliver improved outcomes for our patients and optimal service to providers."