CHS/Community Health Systems, a subsidiary of Community Health Systems, has agreed to divest select outreach laboratory assets to Labcorp for $195m in cash.
Under the agreement, Labcorp will acquire certain assets and take over specific leases related to the ambulatory outreach laboratory services operated by CHS across 13 states.
The deal includes various patient service centres and in-office phlebotomy locations.
Upon completion of the transaction, CHS patients and healthcare providers will gain access to Labcorp’s extensive range of testing and laboratory services. This includes access to Labcorp’s specialised testing options, advanced data analytics, and digital tools.
Despite the divestment, CHS will continue managing its inpatient and emergency department laboratories, as well as providing laboratory services for hospital-based needs such as imaging and pre-admission testing.
CHS operations and development executive vice president Kevin Stockton 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.
“Labcorp’s scale and investment in technology supports its ability to efficiently deliver outreach laboratory services to patients and healthcare consumers.”
Both organisations are dedicated to ensuring a seamless transition that preserves the continuity of services for patients, hospitals, clinicians, and clients. This collaboration aims to provide direct access to Labcorp’s expanded capabilities.
Labcorp has similar strategic partnerships with various local and regional health systems, which have historically improved services for patients and providers.
The transaction awaits customary closing conditions and necessary regulatory approvals. The companies expect to finalise the deal in the fourth quarter of 2025. Until the transaction is finalised, operations and services will remain unchanged.
Labcorp EVP and diagnostics laboratories president and COO Mark Schroeder said: “Labcorp and Community Health Systems share a deep commitment to improving the health and lives of the communities we serve, and our goal with this agreement is to enhance the patient and provider experience with increased access to high-quality laboratory services.
“This acquisition will allow us to leverage the strengths of both our organizations to positively impact healthcare for communities across the US.”
In April this year, Labcorp acquired specific assets from the ambulatory outreach laboratory division of North Mississippi Health Services (NMHS), expanding its footprint in the area.
