PeaceHealth is selling some of its laboratory services and handing over the management of its hospital labs to Quest Diagnostics — a deal that will lead to layoffs for about 500 PeaceHealth employees.
New Jersey-based Quest Diagnostics will acquire the outreach laboratory services operations of PeaceHealth Laboratories (services in all outside clinics) and will manage 11 labs, which PeaceHealth will continue to own, within the PeaceHealth medical centers in Oregon, Washington and Alaska.
PeaceHealth, a Vancouver-based nonprofit, and Quest announced the agreement Wednesday afternoon. The agreement is expected to be finalized in the spring; financial terms were not disclosed.
The acquisition means PeaceHealth will layoff about 500 people — more than half of its 906 laboratory employees. The majority of affected employees should be contacted by Feb. 24, according to a “frequently asked questions” document PeaceHealth released with the announcement. Affected employees will receive information about specific timing, job openings, counseling, spiritual care and outplacement support services, according to PeaceHealth.
Quest will hire up to 275 people for positions in its West region, primarily in Oregon and Washington, and is encouraging PeaceHealth employees to apply for those positions. Those who apply and meet the qualifications will be given priority status in the interview scheduling process, according to the PeaceHealth document.
PeaceHealth leaders began assessing lab services in 2015.
“Health care is in an era of transformation, including in laboratory services. Technology advancements, competition, regulations, the need for sustained capital investment, and other factors have created profound challenges. To most effectively rise to these demands, many organizations are finding innovative ways to collaborate,” PeaceHealth explained in the FAQ document.
“PeaceHealth is committed to delivering quality, community-focused care that is both accessible and sustainable,” Liz Dunne, PeaceHealth president and CEO, said in a news release. “In our current health care landscape, that sometimes means collaborating with organizations that offer the data, tools and resources necessary to stay ahead of the curve in specialized services. After thorough and thoughtful consideration, it became clear that Quest Diagnostics offers the expertise to enhance our services and increase convenient access to care in our communities.”
