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Quest Diagnostics to Acquire Parts of NewYork-Presbyterian Lab Business

NEW YORK – Quest Diagnostics said Tuesday that it has entered an agreement to acquire certain assets of NewYork-Presbyterian's laboratory services business.

Under the terms of the deal, which is expected to close in the second quarter of this year, Quest will obtain lab assets in New York City and the Tri-State Area, while NewYork-Presbyterian will continue to own and operate hospital lab services, including its anatomic pathology services.

During Quest's recent fourth quarter earnings conference call, company official alluded to forthcoming acquisitions that would boost its base testing business. In the fall, industry observers also noted that acquisitions could continue at a steady pace in the face of an ever-shifting reimbursement environment.

"We determined that working with Quest would be the best path — allowing our patients wider access to advanced, quality laboratory services," Steven Corwin, president and CEO of NewYork-Presbyterian, said in a statement.

"Our agreement with NewYork-Presbyterian is designed to leverage Quest's ability to deliver clinical laboratory services with outstanding innovation and quality," Quest President and CEO Jim Davis said in a statement.

Financial and other terms of the deal were not disclosed.