Boston-based Tufts Medicine is selling its outreach laboratory business for an undisclosed amount to Labcorp as the first step to a broader partnership, Boston Business Journals reported Aug. 3.
In February, Tufts was downgraded by Fitch Ratings due to prolonged financial difficulties. The health system joins Portland, Ore.-based Legacy Health and Philadelphia-based Jefferson Health in selling off its lab assets as financial pressure builds.
The acquisition is expected to formally close in October. Tufts is aiming for a partnership with Labcorp to expand diagnostics and provide a single source option for patients and providers.
"Tufts Medicine's long history of outstanding and innovative patient care will combine with Labcorp's comprehensive expertise and resources to increase access to critical services in the diverse communities we proudly serve," said Michael Dandorph, president and CEO of Tufts Medicine. "Our patients, physicians and workforce will remain at the center of all we do as we work closely with Labcorp to expand services in a way that delivers on our goal of a frictionless health care experience."