Businessmen shaking hands in office
Businessmen shaking hands in office

Laboratory Corporation of America Holdings (LabCorp) said today it has agreed to buy the assets of the Clinical Outreach Laboratories of Mount Sinai Health System (Mount Sinai) for an undisclosed price.

LabCorp said the acquisition will enable them to provide comprehensive laboratory services to physicians and patients who now use Mount Sinai’s outreach laboratory. The deal will add seven patient service centers now operated by Mount Sinai to LabCorp’s existing network of 120 patient service centers in the New York City metropolitan area.

Under the deal, Mount Sinai will continue to provide laboratory testing for patients registered at its hospitals and ambulatory facilities as inpatients or outpatients. Mount Sinai will also continue to offer laboratory testing services for physicians in their professional practices in anatomic pathology, molecular pathology, and genetics, LabCorp said.

“We are confident this transaction will provide great benefits for our patients and physicians, and allow Mount Sinai to continue to invest in our core strategic programs,” Donald Scanlon, CFO and chief of corporate services, Mount Sinai, said in a statement.

LabCorp will offer clinical pathology testing, including cytology and cytology-related molecular testing.

William B. Haas, svp and co-leader of LabCorp Diagnostics, said the deal will offer access to clinical trials and research through Covance drug development, enhanced IT and data analytics, standardized testing platforms, and broad patient access.

LabCorp added that it was “vigorously” exploring opportunities to collaborate with Mount Sinai on projects involving companion diagnostics, clinical trials, and medical education.

The transaction is set to close in the first quarter of this year, and has already received clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

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