Southfield, Mich.-based Corewell Health and Secaucus, N.J.-based Quest Diagnostics have finalized a lab joint venture and hospital lab management agreement.
Five things to know:
1. The new joint venture, Diagnostic Lab of Michigan, will be 51% owned by Quest and 49% by Corewell.
2. Quest Diagnostics and Corewell Health’s existing labs will continue to provide services to the joint venture until a 100,000-square-foot centralized lab at the Corewell Health Southfield Center opens in the first quarter of 2027. The new facility will feature advanced diagnostic technologies, including high-throughput molecular testing and automated microbiology.
3. In addition to the joint venture, Quest Diagnostics has begun managing lab operations across all 21 Corewell Health hospitals under its Collaborative Lab Solutions model. Its portfolio of services includes reference testing, supply chain support, lab analytics, workforce management and patient blood management.
4. The agreement builds on Quest Diagnostics’ strategy of expanding its national footprint through partnerships with health systems.
“This joint venture combines Corewell Health’s first-rate academic expertise and deep ties to Michigan with Quest’s leadership in scaling diagnostic innovation to improve access, affordability and patient care,” Jim Davis, president and CEO of the company, said in an Aug. 26 news release. “It also advances Quest’s strategy to expand in growth areas through collaborations with top health systems, building on our many successful laboratory joint ventures in other parts of the U.S.”
5. Corewell Health includes 21 hospitals, more than 300 outpatient locations, and a provider-sponsored health plan serving over 1.3 million members, according to its website.
