Quest Diagnostics Completes Acquisition of Summit Health
News Apr 23, 2014
Quest Diagnostics has completed the previously announced acquisition of Summit Health, a leading provider of on-site prevention and wellness services. Financial terms were not disclosed.
Health and wellness is a large and fast growing segment within the healthcare industry. A report by RAND Corp based on 2012 data found that 85% of employers with over 1,000 employees offer a wellness program.
The combined business will be referred to as Quest Diagnostics Health and Wellness Services. Quest's Blueprint for Wellness biometric screening offering will continue to represent the company's direct-to-employer services. Summit Health's offering will primarily represent private-label services that health plans and health-improvement companies can resell to employers and other clients. It is complementary to Quest's own wellness offering, whose customers tend to be large employers. Both businesses have been growing organically in the double digits.
Over time, the combined organization will add service extensions to both the direct-to-employer and private-label offerings. Blueprint for Wellness clients will have access to Summit's nurse network, flexible on-site event staffing, immunization services and educational seminars. Summit's clients will have access to Quest's 2,200 patient service centers, biometric analysis, nationwide network of mobile phlebotomists, and electronic personal and population health reports.
Summit Health's Novi, Mich. and Scottsdale, Ariz. facilities and Quest's Lenexa, Kan. facilities will play central roles in the combined organization.
"Summit solidifies our leadership position in the fast-growing wellness business," said Steve Rusckowski, President and CEO, Quest Diagnostics. "This acquisition is well aligned with our strategy to restore growth because it will extend the range of solutions we can offer in the growing health and wellness market."
The company's five-point strategy includes restoring growth and driving disciplined capital deployment, including through strategically aligned, accretive acquisitions that add one to two percent in annualized revenues.