Community Health's assets set to be purchased by Labcorp for a sum of $195 million
Labcorp Expands Its Outreach Lab Services with Multiple Acquisitions
Labcorp, a leading healthcare diagnostics company, has been on an acquisition spree, consolidating its position in the industry. In 2023, the company bought Baystate's outreach lab business, furthering its consolidation efforts. This trend of collaborations between Labcorp and health systems looking to outsource lab services has been accelerated by the COVID-19 pandemic.
In July 2025, Labcorp announced a significant acquisition, agreeing to purchase select outreach laboratory assets from Community Health Systems (CHS) across 13 states. This deal expands Labcorp’s testing network and aims to provide broader access to testing and laboratory services to communities in the U.S. While CHS will concentrate on core hospital services, it will continue to operate its inpatient and emergency department labs and provide lab services for imaging, preadmission testing, and other hospital-based services.
The Community Health transaction is expected to close in the fourth quarter. The deal includes patient service centers and in-office phlebotomy locations in 13 states. Labcorp will assume some facility leases as part of the agreement. The acquisition cost is $195 million in cash.
Prior to this, in 2022, Labcorp made one of its larger deals by acquiring certain assets of Ascension's outreach laboratory business for approximately $400 million. In 2024, Labcorp paid approximately $839 million to acquire the clinical and outreach businesses of various entities, including Baystate Medical Center, Providence Medical Foundation, Westpac Labs, Invitae, BioReference Health, and others. Evercore ISI analyst Elizabeth Anderson views these deals as in-line with Labcorp's hospital management and outreach strategy.
Labcorp also acquired the assets of Invitae for $239M in 2024. Outreach lab services provided by Labcorp include testing for doctors' offices and other locations outside of the hospital. Community Health patients and providers at the outreach sites will gain access to Labcorp's testing and laboratory services.
In 2023, Labcorp spent about $671.5 million on acquisitions. However, no other major Labcorp acquisitions from recent years were identified in the provided search results. The Labcorp takeover of Ballad Health outreach laboratory services was not mentioned in the provided information.
In conclusion, Labcorp's strategic acquisitions are shaping the future of healthcare diagnostics, providing broader access to testing and laboratory services across the U.S. while allowing health systems to focus on their core services.
- Labcorp's latest acquisition, worth $195 million, includes patient service centers and in-office phlebotomy locations in 13 states.
- The company's strategic acquisitions are a testament to its dedication to expanding its testing network and broadening access to laboratory services across the U.S.
- The acquisition of Baystate's outreach lab business was one of Labcorp's significant purchases in 2023, furthering its consolidation efforts.
- Labcorp's acquisitions have been influenced by the COVID-19 pandemic, leading to an acceleration of collaborations between Labcorp and health systems.
- The Community Health transaction, expected to close in the fourth quarter, will allow CHS to concentrate on core hospital services while Labcorp provides lab services for imaging, preadmission testing, and other hospital-based services.
- In 2022, Labcorp acquired certain assets of Ascension's outreach laboratory business for approximately $400 million.
- Analyst Elizabeth Anderson views Labcorp's deals as in-line with its hospital management and outreach strategy.
- Labcorp's strategic acquisitions in medtech, health-and-wellness, and fitness-and-exercise sectors, along with investments in AI, finance, and business analytics, are shaping the future of healthcare diagnostics.
