Corewell to transition operations of 21 hospital labs under joint venture
Southfield, Mich.-based Corewell Health will transition operations of its 21 hospital labs through a new joint venture with Quest Diagnostics, the companies said Aug. 26.
The joint venture, Diagnostic Lab of Michigan, will be based at a new 100,000-square-foot laboratory facility at Corewell’s Southfield Center. The lab is set to open in the first quarter of 2027 and will feature advanced technologies, including automated microbiology and high-throughput molecular testing.
Under the agreement, Quest will provide its Collaborative Lab Solutions services, which include reference testing, professional lab management, workforce and supply chain management, and analytics, for all of Corewell’s inpatient and outpatient hospital labs across Michigan. The labs will remain open after the new facility is constructed.
“Quest has a proven track record of delivering innovative and high-quality diagnostic services that put patients first,” Corewell COO Chad Tuttle said in an Aug. 26 news release. “This new joint venture will support our ongoing efforts to make healthcare more affordable and accessible.”
Equity ownership of the joint venture will be split, with Quest holding 51% and Corewell 49%. Terms of the transaction were not disclosed.
Phases of the supply chain and reference agreements are expected to begin in late 2025. Most aspects of the lab services agreement, including lab management, will take effect in 2026. Corewell and Quest plan to continue serving providers and patients from their existing labs and patient service centers until the joint facility opens.
“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,” Quest President and CEO Jim Davis said. “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.”
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