Quest Diagnostics will acquire the outreach laboratory services of University Hospitals, a Cleveland-based nonprofit health system, expanding its diagnostic services footprint in Ohio.

Dr. Cliff A. Megerian, CEO of University Hospitals, characterized the move as a way to enhance patient access while maintaining service quality. "Laboratory testing is a critical and increasingly complex area of healthcare, and Quest is a trusted name known for high quality and innovation," he said.

University Hospitals serves northern Ohio through a network of over 20 hospitals and numerous outpatient facilities, while Quest Diagnostics is a leader in diagnostic information services nationwide.

Quest Diagnostics, headquartered in Secaucus, New Jersey, aims to optimize lab services through this acquisition. CEO Jim Davis stated, "Top health systems like University Hospitals are transitioning their laboratory services to Quest to improve efficiency and ensure access to affordable care."

The transaction, expected to close by the end of 2024 and pending regulatory approvals, continues a trend where large health systems increasingly outsource their lab services to specialized providers in order to focus more on direct patient care.

Financial details were not disclosed.