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Quest Diagnostics and Northern Light Health Form Strategic Laboratory Collaboration to Improve Access to Affordable Diagnostic Services in Maine

Friday, December 09, 2022

Quest Diagnostics, the leading provider of diagnostic information services, and Northern Light Health, a prominent integrated healthcare system in Maine, have announced a strategic laboratory collaboration. The collaboration aims to enhance access to innovative, high-quality, and affordable laboratory services, thereby promoting affordable care for communities in Maine.

As part of the agreement, Quest will acquire certain assets of Northern Light Health's outreach laboratory services business, known as Northern Light Laboratory, through an all-cash transaction. Additionally, Quest will provide professional laboratory management services for nine of Northern Light Health's hospital laboratories, as well as its cancer center laboratory at Northern Light Cancer Care in Brewer, Maine.

Northern Light Health selected Quest Diagnostics following a competitive bidding process, and the transaction is expected to be completed in the first quarter of 2023. The financial details of the agreement have not been disclosed.

Upon completion, this collaboration will enable physicians and patients across Maine to benefit from Quest's industry-leading test menu, extensive network of patient access sites throughout the state, broad health plan coverage, and reduced out-of-pocket costs for many services. Non-urgent advanced and routine clinical testing previously conducted by Northern Light Laboratory will be transitioned to Quest's state-of-the-art laboratory in Marlborough, Mass. Tests requiring rapid results will be performed at a Quest rapid response lab in the Bangor, Maine area, as well as select Northern Light Health hospital labs.

Timothy J. Dentry, the president and CEO of Northern Light Health, expressed the organization's commitment to delivering diagnostic innovation, service, and affordability by collaborating with Quest Diagnostics, an industry leader. The collaboration will allow Northern Light Health to focus on providing excellent patient care while leveraging Quest's expertise and resources.

James E. Davis, the CEO and President of Quest Diagnostics, emphasized the importance of diagnostic insights in delivering high-value healthcare. Through this collaboration, Quest aims to optimize laboratory services for clinical value and patient affordability. The partnership with Northern Light Health aligns with Quest's mission to expand access to critical diagnostic insights, ultimately promoting healthier lives for individuals and families in Maine.

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