SECAUCUS, N.J. and GREENBRAE, Calif., Oct. 25, 2018 /PRNewswire/ -- Quest Diagnostics (NYSE: DGX), the world's leading provider of diagnostic information services, and Marin General Hospital, a not-for-profit, full-service hospital, have entered into a definitive agreement for Quest to acquire the outreach laboratory services operations of Marin General Hospital.
The transaction will enhance the delivery of innovative, high-value diagnostic information services to communities in Marin County, Calif. Physicians and patients will benefit from an enhanced test menu, which includes advanced diagnostic services, and an expanded network of conveniently located patient service centers.
"The hospital has worked with Quest for years, and they are known for quality, innovation and scale. We feel they will be better able to maintain the standards our community wants and deserves at a reasonable cost. We will collaborate to ensure a smooth transition," said Lee Domanico, Chief Executive Officer, Marin General Hospital & Marin Healthcare District at Marin General Hospital.
"This acquisition is consistent with our strategy to accelerate growth and deepens our presence in California," said Steve Rusckowski, Chairman, President and CEO, Quest Diagnostics. "It also underscores our unique value proposition for health systems, which increasingly require a strong and strategic collaborator in diagnostic services to help them navigate today's challenging healthcare environment. As PAMA increasingly pressures hospital outreach labs, health systems are seeking opportunities to entrust these services to Quest, given our ability to provide broad access to diagnostic quality and innovation for comparably lower cost."
The Protecting Access to Medicare Act ("PAMA") is a law that changes how the Centers for Medicare and Medicaid Services establishes reimbursement for laboratory services provided to Medicare beneficiaries. Reimbursement for lab services could drop as much as 30% between 2018 and 2020.
The acquisition is not subject to government review, and is expected to be completed in the fourth quarter of 2018. Additional terms were not disclosed.
About Quest Diagnostics
Quest Diagnostics empowers people to take action to improve health outcomes. Derived from the world's largest database of clinical lab results, our diagnostic insights reveal new avenues to identify and treat disease, inspire healthy behaviors and improve health care management. Quest annually serves one in three adult Americans and half the physicians and hospitals in the United States, and our 45,000 employees understand that, in the right hands and with the right context, our diagnostic insights can inspire actions that transform lives. www.QuestDiagnostics.com.
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.
About Marin General Hospital
Marin General Hospital has been meeting the community's healthcare needs since 1952. Many Marin County residents choose to live here because they appreciate the healthy lifestyle and transformative natural environment. In keeping with the values and needs of the community, Marin General Hospital is dedicated to treating the whole patient, mind, body, and spirit. Their mission is to provide the people of Marin with the healing care they want and deserve. Marin General Hospital offers advanced medical expertise, technology, and treatments in an exceptionally healing environment. It also gives patients the opportunity to complement their medical treatment with integrative therapies at our Center for Integrative Health & Wellness. Together, Marin General Hospital's care team delivers award-winning services that are recognized by patients and their families, as well as by independent organizations who rank the hospital among the best. For more information, please visit https://www.maringeneral.org/about-us.
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SOURCE Quest Diagnostics
Kim Gorode (Quest Media): 973-520-2800, or Shawn Bevec (Quest Investors): 973-520-2900, or Jamie Maites (Marin General Hospital): 415-925-7424