Quest Diagnostics (NYSE: DGX), the world's leading provider of diagnostic information services, today announced that it has entered into a definitive purchase agreement under which Quest will acquire Summit Health. Terms of the transaction were not disclosed. Summit Health is a leading provider of on-site prevention and wellness programs primarily for employers.
Founded in 2004, Summit Health is a privately held company headquartered in Novi, Michigan with an office in Scottsdale, Arizona. Summit Health has one of the largest national networks of nurses who staff on-site wellness programs for employers, health plans, retail clinics and other wellness-focused organizations. The company's services include biometric and other health screenings primarily by finger stick specimen collection, as well immunizations, coaching and educational seminars.
Summit Health's services complement the health and wellness business of Quest Diagnostics, which includes the company's Blueprint for Wellness® health assessment services for employers and individuals. These services feature personalized reports based on results of clinical lab testing and other biometric measures, and are supported by the company's clinical laboratory testing operations, approximately 2,200 patient service centers, and ExamOne network of health examiners in the U.S.
"Disease prevention and wellness programs are critical to better outcomes and lower costs. Together, our two companies will give employers, health plans and individuals greater access to a uniquely broad range of prevention and wellness services that use diagnostic insights to inform early intervention and preventive care and ultimately reduce healthcare costs," said Steve Rusckowski, President and CEO, Quest Diagnostics. "Our respective client bases, technology and service delivery platforms are complementary, and provide significant potential to enhance our offerings and accelerate growth in health and wellness, a large and fast growing segment within healthcare."
Mr. Rusckowski added: "This acquisition supports Quest Diagnostics' five-point strategy, which includes restoring growth and driving disciplined capital deployment. One of our capital deployment objectives is to grow one to two percent a year through strategically aligned, accretive acquisitions."
Preventive health and wellness is an area of growing importance for the U.S. healthcare system. The Patient Protection and Affordable Care Act incentivizes employers to implement health and wellness programs by tying premiums to health statistics and employee participation rates in wellness programs. More than two-thirds of companies encourage participation in company wellness activities, according to independent research.
"Summit Health and Quest share the same vision of empowering people to improve their health using diagnostic insights," said Richard Penington, CEO, Summit Health. "By joining forces, we will be uniquely positioned to help clients and their employees and members promote healthier lives, reduce costs and support the national focus on prevention and wellness. Combining Summit's on-site excellence with Quest's expertise in quality clinical laboratory testing helps us to advance our vision of enabling preventive care, early intervention and good health."
The company expects to complete the acquisition in the first half of 2014, subject to the satisfaction of regulatory and other customary closing conditions.