Financial terms of the deal were not disclosed. Hospital officials explained the move to outsource was based on national challenges to hospital payments.
“Given the high cost of healthcare and reimbursement pressures in the U.S., it is incumbent upon healthcare leaders to develop creative solutions for delivering high-quality, more affordable patient-centered care,” said John O’Brien, president and CEO of UMass Memorial Health Care, in a news release. “This transaction…will allow us to focus on our core hospital services.”
Quest Diagnostics’ acquisitions of UMass Memorial’s lab businesses will add roughly 50 new patient service centers to its roster in Massachusetts. UMass Memorial will also have the option to invest in a minority financial stake in Quest Diagnostics’ Massachusetts business, according to the release.
More Articles on Hospital Finance:
How 3 Rural California Hospitals Are Battling Financial Stress
Carter Validus REIT Buys Vibra New Bedford Hospital
Highline Medical Center in Washington State Sells Specialty Campus, Seeks Partner
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.