The proposed $540 million acquisition gives Sydney-based Sonic Healthcare greater scale and a larger geographic presence in the US laboratory market.
The lab joint venture reached in 2017 has increased testing volumes in the hospital core lab and expanded Western Connecticut's outreach services.
The JV is expected to grow the outreach business by combining state-of-the-art lab facilities with Sonic's connectivity and analytics capabilities.
The JV, called ProMedica Pathology Laboratories, will combine the inpatient and outreach testing capabilities as well as esoteric testing capabilities of the partners.
The PGx decision support software that Sonic is adopting includes clinical reporting for 65 genes and can be tailored to a variety of clinical specialties.
The new Kidney Profile combines two existing tests for chronic kidney disease and could be critical in addressing the under-diagnosis of the ailment.
The collaboration aims to eliminate barriers to testing for chronic kidney disease by standardizing the method for testing for the condition, thereby improving the comparison of test results between labs.
Changes to Medicare reimbursements are forcing hospitals to create lab-focused joint ventures and partner in various ways with other organizations to stay financially viable.
The test was developed by the University of Pittsburgh Medical Center and is marketed in partnership with Sonic Healthcare.
The test screens for 90 mutations across 29 oncogenes and analyzes eight exons of three genes to help clinicians select treatments.