LabCorp agreed to acquire Pathology Associates Medical Laboratories from Providence Health & Services and Catholic Health Initiatives for an undisclosed amount.
“This signature transaction strengthens LabCorp’s relationships with anchor health systems and expands LabCorp’s geographic presence into important markets,” said LabCorp CEO David King, in a statement. “We have always admired the commitment of PAML, its owners and its joint venture partners to providing high-quality, community-based laboratory services. LabCorp shares that same vision and commitment, and is excited to work with these industry-leading health systems and hospitals as partners to continue to provide these services.”
The deal, which is expected to close in 2018, will see LabCorp pick up PAML’s interest in a number of joint ventures, including Tri-Cities Laboratory (TCL) in Kennewick, Washington, and Salt Lake City-based MountainStar Clinical Laboratories (MSCL).
Spokane, Washington-based PAML and its joint ventures offer lab services in a handful of states, including California, Colorado, Idaho and Montana, according to a statement. LabCorp’s acquisition will boost its presence in the Pacific Northwest, the Midwest and the South.
Hospital partners in the TCL and MSCL joint ventures are weighing options for their ownership, which could include a sale to LabCorp, according to the statement.
“We are confident that our selection of LabCorp to be PAML’s new owner will serve the best interests of all who rely on us to meet their healthcare needs through comprehensive, high quality laboratory services,” said Catholic Health Initiatives CEO Kevin Lofton in the statement.