NEW YORK – Laboratory Corporation of America said Thursday that it signed an agreement with Tufts Medicine to acquire the university-based health system's outreach laboratory business and related assets.
Labcorp said the agreement is the first step in a strategic partnership that will improve access to testing, reduce wait times, and standardize laboratory testing through the Tufts Medicine system. Labcorp will provide scientific expertise and advanced diagnostics in areas including oncology, neurology, and women's health, and the partnership will leverage its clinical lab services, data and digital tools, and national network of patient service centers.
The transaction is expected to close in October. Financial and other terms of the deal were not disclosed.
Mark Schroeder, president of Labcorp's diagnostics lab business and the firm's chief operations officer, said in a statement that the partnership will improve the testing experience by providing an integrated and efficient single-source option for patients and providers.
Labcorp entered into a similar agreement in July with Oregon-based hospital system Legacy Health. Under that agreement, Labcorp will acquire the system's outreach lab facilities and equipment as well as services and support for Legacy's inpatient labs.
Hospital and outreach labs are under pressure as reimbursement levels decline due to payors' efforts to reduce payouts and legislation that reduced Medicare spending on lab testing. Hospital systems across the US are considering whether to sell their outreach labs to narrow their focus and support the broader business.