Corewell Health and Quest Diagnostics to Enter into Joint Venture Providing Enhanced Laboratory Services in Michigan

Original from: Quest Diagnostics

Corewell Health and Quest Diagnostics (NYSE: DGX), a leading provider of diagnostic information services, have signed a definitive agreement to enter into a joint venture to expand access to innovative, quality and affordable laboratory services in Michigan.

The joint venture, Diagnostic Lab of Michigan, LLC, will be based at a state-of-the-art laboratory facility at the Corewell Health Southfield Center in Southfield, Michigan. The future 100,000-square-foot facility will feature advanced technologies, such as automated microbiology and high-throughput molecular testing.

In addition, Quest will provide the full complement of its Collaborative Lab Solutions (Co-Lab), including reference laboratory testing, professional laboratory management services, laboratory workforce and supply chain management, and analytics, for all of Corewell Health's 21 inpatient and outpatient hospital labs. These hospitals labs are located across the state and will remain open after the new lab is constructed.

"We are thrilled to collaborate with Quest Diagnostics, a leader in diagnostic lab services," Corewell Health Chief Operating Officer Chad Tuttle said. "Quest has a proven track record of delivering innovative and high-quality diagnostic services that put patients first. This new joint venture will support our ongoing efforts to make health care more affordable and accessible."

"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," said Jim Davis, Chairman, CEO and President, Quest Diagnostics. "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." 

Equity ownership of the joint venture will be shared 51% by Quest and 49% by Corewell Health. The JV transaction meets all of Quest's criteria for growth, profitability and returns. Additional terms were not disclosed.

The parties expect to complete the joint venture transaction in the first quarter of 2026. The parties intend to begin phases of the supply chain and reference agreements in late 2025, although most aspects of the laboratory services agreement, including laboratory management, will begin in 2026. Quest and Corewell Health expect to continue to serve providers and patients in Michigan from their existing patient service centers, which will be run by the joint venture, as well as from their existing laboratories, until the joint venture laboratory opens. The parties expect the new laboratory to be operational in the first quarter of 2027. 

Source: Corewell Health and Quest Diagnostics to Enter into Joint Venture Providing Enhanced Laboratory Services in Michigan