MADISON, N.J. and HYANNIS,
Mass., June 27, 2017
/PRNewswire/ -- Quest Diagnostics (NYSE: DGX), the world's
leading provider of diagnostic information services, today
announced it has signed a nonbinding letter of intent to acquire
the outreach laboratory services business of Cape Cod
Healthcare (CCHC). The acquisition is subject to review by
the Massachusetts Health Policy Commission and completion of a
definitive agreement.
Cape Cod Healthcare is the leading provider of healthcare
services for residents and visitors of Cape Cod. The
transaction, if completed, is expected to enhance access to
quality, affordable and convenient laboratory services for people
on Cape Cod.
"With Quest as our partner, we will not only maintain quality
and continuity of services, but we will also lower costs," said
Michael K. Lauf, president and CEO
of Cape Cod Healthcare. "I am confident that they are a partner
that will be flexible and responsive, something that is critically
important in the rapidly changing and innovative field of
diagnostic testing."
Outreach laboratory services are provided to local physicians
and patients separate from hospital inpatient or outpatient care.
The testing would transition to Quest's full-service,
state-of-the-art clinical laboratory in Marlborough, Mass. CCHC's hospital-based
laboratories and the inpatient and outpatient services it provides
are not included in the transaction.
"As hospital health systems consider their outreach laboratory
strategies in light of reimbursement pressures and the growth of
high-deductible plans, which place a greater share of cost on
patients, many are turning to Quest to help them deliver on their
core mission of delivering patient care," said Steve Rusckowski, chairman, president and CEO of
Quest Diagnostics. "Top health systems that have developed a
commercial outreach business, such as Cape Cod Healthcare, are
increasingly entrusting this vital diagnostic information service
to Quest because we have unique assets, such as clinical expertise
and scale, which allow us to deliver great value."
Once completed, the acquisition is expected to deliver several
distinct benefits to patients and physicians on Cape Cod. These include significantly greater
patient access and convenience through access to CCHC's patient
service center network on Cape
Cod, and thousands of clinical laboratory tests, including
highly advanced and novel genetic sequencing tests for cancer,
neurological disorders and other diseases. The two
organizations also intend to explore opportunities to collaborate
in population health and data analytics, among other areas.
The transaction also will leverage Quest's scale and expertise
to produce more cost-effective testing for patients as well as
government and commercial health plans. Third-party research shows
that Quest Diagnostics often provides lab services that cost
significantly less than those provided by hospital-based
labs. The 2015 Massachusetts Health Policy Commission 2015
Cost Trends Report found "the price difference for the same service
between different settings of care supports the need to explore
opportunities to address both price variation and site-neutral
payments." For example, for a basic metabolic panel, the
median price at a hospital outpatient department was $29, compared to a median price of $12 at Quest.
Upon approval by the HPC, the organizations expect to complete
the transaction by January 1, 2018,
subject to negotiation of definitive agreements related to the
transaction and customary closing conditions. Financial terms were
not disclosed.
About Cape Cod Healthcare
Cape Cod Healthcare is the
leading provider of healthcare services for residents and visitors
of Cape Cod. With more than 450
physicians, 5,300 employees and 790 volunteers, Cape Cod Healthcare
has two acute care hospitals, the Cape's leading provider of
homecare and hospice services (VNA), a skilled nursing and
rehabilitation facility, an assisted living facility, and numerous
health programs. For more information, visit Cape Cod Healthcare's
web site at www.capecodhealth.org. Cape Cod Healthcare. Visit our
health news site www.capecodhealthnews.com for the latest in
relevant and credible healthcare news.
About Quest Diagnostics
Quest
Diagnostics empowers people to take action to improve health
outcomes. Derived from the world's largest database of
clinical lab results, our diagnostic insights reveal new avenues to
identify and treat disease, inspire healthy behaviors and improve
health care management. Quest annually serves one in three
adult Americans and half the physicians and hospitals
in the United States, and our 43,000 employees understand
that, in the right hands and with the right context, our diagnostic
insights can inspire actions that transform
lives. www.QuestDiagnostics.com.
50th Anniversary: In 2017, Quest Diagnostics celebrates 50 years
of life-changing results. To learn about our legacy of
accomplishments and quest to improve healthcare in the future,
visit www.QuestDiagnostics.com/50Years.
Quest Diagnostics Contacts:
Denny Moynihan, Quest Diagnostics
(Media): 973-520-2800
Shawn Bevec, Quest Diagnostics
(Investors): 973-520-2900
Cape Cod Healthcare Contact:
Robin Lord, Cape Cod Healthcare
(Media): 508-862-7891
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/quest-diagnostics-announces-intent-to-acquire-cape-cod-healthcare-outreach-laboratory-business-in-massachusetts-300480488.html
SOURCE Quest Diagnostics