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2 health systems selling off labs

Two financially challenged health systems have recently said they want to sell some of their laboratory assets to Burlington, N.C.-based Labcorp in a bid to help ease such issues.

Portland, Ore.-base Legacy Health said July 11 it aims to sell "select assets" of its laboratory business, with about 700 of its employees joining Labcorp.

The six-hospital system reported a $114.8 million operating loss for 2022, and its outlook was revised to negative in April by Moody's as persistent debt challenges remain.

The Legacy Health move followed a similar one in May when Philadelphia-based Jefferson Health said it would offload certain assets of its laboratory services to Labcorp.

Thomas Jefferson University, which includes both the 18-hospital health system and the university's academic sector, had its outlook revised downward June 9 because of sustained operating weakness, S&P Global said.

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