Quest Diagnostics Inc. (DGX) has signed a definitive agreement to acquire Summit Health - a leading provider of on-site prevention and wellness programs, primarily for employers. However, terms of the transaction have not been disclosed.
Founded in 2004, Michigan-based privately-held Summit Health provides on-site wellness programs including biometric and other health screenings, immunizations, coaching and educational seminars for employers, health-plans, retail clinics and other wellness-focused organizations.
Summit Health’s Blueprint for wellness health assessment services provide personalized reports based on results of clinical lab testing and other biometric measures to employers and individuals. The company’s clinical laboratory testing operations, around 2,200 patient service centers and its ExamOne network of health examiners across the nation facilitate the fast and accurate preparation of such customized health reports.
Post acquisition, Summit Health’s services will complement the health and wellness business of Quest Diagnostics. According to Steve Rusckowski, President and CEO of Quest Diagnostics, Summit Health and Quest Diagnostics will jointly offer employers, health plans and individuals greater access to a unique and wide range of prevention and wellness services. Such services will need diagnostic insights to implement early preventive care and intervention well in time. This, in turn, will help reduce overall healthcare costs.
This acquisition will bring the respective clients of both the companies under one roof to ensure that more people benefit from such growth-inducing collaborations within the health and wellness sector.
For the U.S. healthcare system, preventive health and wellness hold significant potential. By joining forces, Quest Diagnostics and Summit Health will be uniquely positioned to promote healthier lives at reduced costs for their clients and their employees.
Quest Diagnostics expects to complete the acquisition in first-half 2014, subject to the satisfaction of regulatory and other customary closing conditions.
Quest Diagnostics, which currently holds a Zacks Rank #4 (Sell), offers diagnostic testing, information and services to patients and doctors, who need advanced solution for making better healthcare decisions, in the U.S. and globally.
Some better-ranked stocks worth considering in the boarder healthcare sector include Chemed Corp. (CHE), China Cord Blood Corporation (CO) and Becton, Dickinson and Company (BDX). While Chemed carries a Zacks Rank #1 (Strong Buy), both China Cord and Becton, Dickinson hold a Zacks Rank #2 (Buy).