Quest Diagnostics (NYSE: DGX) has had a busy month. On January 22, it acquired Blueprint Genetics, a leading genetic testing company based in Helsinki, Finland, for an undisclosed amount.
Now, it’s turned its sites back home. On January 27, it announced a deal for substantially all of the Memorial Hermann Diagnostic Laboratories (MDHL), the outreach lab division of not-for-profit Memorial Hermann Health System in Houston. Memorial Hermann has 17 hospitals and more than 300 care delivery sites in the greater Houston area.
The acquisition includes nearly 30 MHDL patient service centers and nearly 60 in-office laboratory service sites. These services will transition to the Quest full-service laboratory in Houston. Upon closing, Quest will also provide professional laboratory management services through a multi-year agreement for all of MH’s 21 hospital laboratories, which provide onsite rapid response testing. MH will continue to wholly own those labs.
Quest will also become the sole preferred provider of lab services for the Memorial Hermann Health Plan. This deal is expected to close in the second quarter of 2020.