Quest Diagnostics to Acquire Dignity Health's Lab Outreach Services

Diagnostic information specialist Quest Diagnostics (NYSE: DGX  ) will acquire the lab-related clinical outreach service operations of California-based hospital system Dignity Health, serving doctors and patients in parts of California and Nevada. 

Outreach services are provided by hospitals to physicians and patients outside of a hospital setting.

Quest Diagnostics expects the transaction to be completed in June and anticipates it will be neutral to adjusted earnings in 2013 and modestly accretive to earnings per share in 2014. The company expects it to contribute about half a percentage point to consolidated revenues annually. 

Quest Diagnostics president and CEO Steve Rusckowski said, "This acquisition is consistent with our five-point strategy, which includes delivering disciplined capital deployment and driving 1% to 2% in growth per year through strategically aligned fold-in acquisitions."

If completed, this will mark the second acquisition by Quest of an outreach business in 2013. In January, Quest acquired the clinical and anatomic-pathology outreach laboratory businesses of Massachusetts-based UMass Memorial Medical Center.

Additional terms of the Dignity Health acquisition were not disclosed.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2368117, ~/Articles/ArticleHandler.aspx, 9/30/2016 3:06:42 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,340.89 197.44 1.09%
S&P 500 2,172.45 21.32 0.99%
NASD 5,321.83 52.67 1.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 2:50 PM
DGX $84.72 Up +1.57 +1.89%
Quest Diagnostics CAPS Rating: ****