Community Health to sell outreach lab assets to Labcorp for $195M in cash

Community Health Systems (CYH) announced that its subsidiary, CHS/Community Health Systems, has entered into a definitive agreement with Labcorp (LH), pursuant to which Labcorp will acquire select assets and assume certain leases of the ambulatory outreach laboratory services of CHS health systems in 13 states, including certain patient service centers and in-office phlebotomy locations, for $195M cash. When the transaction is complete, CHS patients and providers will benefit from broader access to Labcorp’s comprehensive testing and laboratory services, including its specialty testing menu, robust data analytics and digital tools. CHS health systems will continue to operate their inpatient and emergency department laboratories and will continue to provide laboratory services for hospital-based services, such as imaging and pre-admission testing. “We are excited about this transaction with Labcorp, which allows us to focus on our core services and improve the overall patient experience, aligning with our unwavering commitment to providing high-quality, accessible healthcare to our communities,” said Kevin Stockton, Executive Vice President, Operations and Development for CHS. “Labcorp’s scale and investment in technology supports its ability to efficiently deliver outreach laboratory services to patients and healthcare consumers.” This relationship is similar to other strategic relationships that Labcorp has with a range of local and regional health systems that have enhanced services for patients and providers. The transaction is subject to customary closing conditions and applicable regulatory approvals. The companies anticipate closing the transaction in the fourth quarter of 2025. Until that time, there will be no changes in operations or services.