Community Health Systems has entered an agreement to sell some of its ambulatory lab businesses to Labcorp in a deal estimated at $195 million.
The deal spans 13 states and includes certain patient service centers and in-office phlebotomy locations.
When the transaction is complete, CHS said patients and providers stand to benefit from broader access to Labcorp's testing and laboratory services, including its specialty testing menu, data analytics and digital tools.
CHS health systems will continue to operate their inpatient and emergency department laboratories and will continue to provide laboratory services for hospital-based services, such as imaging and preadmission testing, the system said.
WHAT'S THE IMPACT
The two organizations said they're working together to plan and implement a smooth transition. The idea is to maintain continuity of services for patients, hospitals, clinicians and clients while providing direct access to Lapcorp's capabilities.
This relationship is similar to other strategic relationships that Labcorp has with a range of local and regional health systems that have enhanced services for patients and providers.
The companies anticipate closing the transaction in the fourth quarter of 2025. Until that time, there will be no changes in operations or services, the organizations said.
"We are excited about this transaction with Labcorp, which allows us to focus on our core services and improve the overall patient experience, aligning with our unwavering commitment to providing high-quality, accessible healthcare to our communities," said Kevin Stockton, executive vice president, operations and development for CHS. "Labcorp's scale and investment in technology supports its ability to efficiently deliver outreach laboratory services to patients and healthcare consumers."
THE LARGER TREND
In June, a federal judge ruled against the Federal Trade Commission's efforts to stop Novant Health from buying two Community Health Systems hospitals in North Carolina.
In March, the FTC sued to block Novant's $320 million purchase of CHS hospitals' Lake Norman Regional Medical Center and Davis Regional Psychiatric Hospital.
U.S. District Court Judge Kenneth Bell denied the injunction, saying the purchase would likely increase competition against another large hospital system in the area, Atrium Health.
Bell said the benefits of the purchase – including avoiding the immediate closure of Davis Regional Psychiatric Hospital and the addition of medical services at Lake Norman Regional Medical Center (LNR) – outweigh the benefits of an injunction, including the loss of tax revenue from turning two for-profit CHS hospitals to nonprofit status when they would be owned by Novant.
Email: jlagasse@himss.org
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