Quest Diagnostics to Acquire Lab-Related Clinical Outreach Operations of
Dignity Health in California and Nevada
Transaction expected to deliver innovative and high-quality diagnostic
information services at lower costs to patients
MADISON, N.J. and SAN FRANCISCO, April 17, 2013
MADISON, N.J. and SAN FRANCISCO, April 17, 2013 /PRNewswire/ --Quest
Diagnostics (NYSE: DGX), the world's leading provider of diagnostic
information services, announced today that it has entered into a definitive
agreement to acquire lab-related clinical outreach service operations of
Dignity Health,a hospital system based in California.
Under the agreement, Quest Diagnostics will acquire operations through which
Dignity Health currently provides outreach diagnostic information services to
patients and physician offices in parts of California and Nevada. Outreach
services are provided by hospitals tophysicians and patients outside ofa
hospital setting. Dignity Health's hospital-based laboratories are not
included in the sale. Quest Diagnostics will perform testing from the acquired
operations through its clinical laboratories in West Hills and Sacramento,
Calif., and Las Vegas, Nevada.
The transaction is expected to be completed in June 2013, assuming customary
approvals. Additional terms were not disclosed.
"With this acquisition, patients, physicians and payers in California and
Nevada will gain access toa wider range of high-quality, innovative
diagnostic information services and patient service center options at lower
cost," said Steve Rusckowski, president and chief executive officer, Quest
Diagnostics."In addition, this acquisition is consistent with our five-point
strategy, which includes delivering disciplined capital deployment and driving
one to two percent in growth per year through strategically aligned fold-in
Quest Diagnostics expects the transaction to be neutral to adjusted earnings
in 2013 and modestly accretive to earnings per share in2014. The company also
expects it to contribute about half a percentage point to consolidated
"This agreement will provide patients and physicians with continued access to
high-quality, cost effective diagnostic information services through Quest
Diagnostics," said Lloyd Dean, president/CEO of Dignity Health. "Quest's
specialization in diagnostic information services will enable this important
service line to remain competitive while also allowing Dignity Health to
invest more strategically in acute and ambulatory clinical care."
Assuming its completion, the transaction will be the second acquisition by
Quest Diagnostics of an outreach business in 2013. In January 2013, Quest
Diagnostics acquired the clinical and anatomic-pathology outreach laboratory
businesses of Massachusetts-based UMass Memorial Medical Center, a member of
UMass Memorial Health Care.
"Our agreement with Dignity Health underscores the attractiveness of Quest
Diagnostics as a provider of low-cost, high-quality diagnostic information
services to hospital systems which, in light of health care reform and growing
reimbursement pressures, are considering strategic alternatives for their lab
outreach businesses," said Rusckowski.
About Dignity Health
Headquartered in San Francisco, Dignity Health is dedicated to providing
compassionate, high-quality and affordable patient-centered care with special
attention to the poor and underserved. In 2011, Dignity Health provided $1.6
billion in charitable care and services. For more information, please visit
the Dignity Health website at www.dignityhealth.org. You can also follow
Dignity Health on Twitter and Facebook.
About Quest Diagnostics
Quest Diagnostics is the world's leading provider of diagnostic information
services that patients and doctors need to make better healthcare decisions.
The company offers the broadest access to diagnostic information services
through its network of laboratories and patient service centers, and provides
interpretive consultation through its extensive medical and scientific staff.
Quest Diagnostics is a pioneer in developing innovative diagnostic tests and
advanced healthcare information technology solutions that help improve patient
care. Additional company information is available at QuestDiagnostics.com.
Follow us at Facebook.com/QuestDiagnostics and Twitter.com/QuestDX.
Quest, Quest Diagnostics, and all associated Quest Diagnostics registered or
unregistered trademarks are the property of Quest Diagnostics. All third-party
marks are the property of their respective owners.
Quest Diagnostics Contacts:
Dan Haemmerle (Investors): 973-520-2900
Wendy Bost (Media): 973-520-2800
SOURCE Quest Diagnostics
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