Labcorp to acquire a portion of the assets of Legacy Health

Published Mar. 09, 2024

By Hopkins Medtech

July 11, Labcorp has announced an agreement to acquire a portion of the assets of Legacy Health’s external laboratory business and manage their inpatient hospital laboratories.

 

Specifically, Labcorp will acquire Legacy Health’s external laboratory facilities and equipment while providing personnel, leadership, scientific expertise, analytics, supply chain services, and laboratory support to Legacy’s inpatient laboratories. Legacy will retain ownership and licensing of its hospital laboratories and the central laboratory building in Holladay Park, northeast Portland.

 

Labcorp’s acquisition of more laboratories aligns with its restructuring strategy and is consistent with the company’s style and planning. In March of this year, Labcorp acquired the clinical laboratory division of Enzo Biochem for $146 million. In May, Labcorp further expanded its portfolio by acquiring a portion of the assets of Providence Oregon’s laboratory business.

Labcorp, formerly known as National Health Laboratories Incorporated, was established in 1978 and is headquartered in North Carolina, USA. It operates one of the world’s largest clinical laboratory networks. The company was originally a national blood and pathology laboratory under Revlon Health Care Group. In 1995, National Health Laboratories Holdings Inc. merged with Roche Biomedical Laboratories, Inc., and the company was renamed Laboratory Corporation of America Holdings, or Labcorp.

 

Since 2000, Labcorp has engaged in numerous acquisitions and has gradually become a leading company in clinical testing and laboratory services in the United States.

 

Legacy Health, founded in 1989, is a non-profit hospital system based in Portland, Oregon, USA. The system comprises six hospitals, a behavioral health services center, and over 60 primary care clinics.

 

Clinical Laboratory Services Market:

According to Grand View Research data, the global clinical laboratory services market was valued at approximately $201.9 billion in 2021 and is projected to reach $280.6 billion by 2030, with a compound annual growth rate of 3.7%. In 2021, the US clinical laboratory services market was approximately $68.4 billion, and the compound annual growth rate for the period from 2022 to 2030 is estimated to be 2.3%.

 

Notable players in the clinical laboratory services market include QIAGEN, Quest Diagnostics Inc., OPKO Health, Inc., Abbott, Siemens Medical Solutions USA, Inc., Neo Genomics Laboratories, Fresenius Medical Care, ARUP Laboratories, Sonic Healthcare, and Laboratory Corporation of America Holdings (LabCorp).