Labcorp has entered a strategic collaboration with Ballad Health to acquire select outreach lab services from the Tennessee-based health system.

This agreement aims to improve efficiency and enhance patient care in the Appalachian Highlands region, where Ballad Health operates, while also reducing costs for the region's healthcare consumers.

Under the terms of the deal, Labcorp will take over certain outreach laboratory operations, while Ballad Health will retain control of its inpatient and emergency department labs, as well as services for hospital-based practices, including oncology. The move is designed to streamline operations for both organizations, combining Ballad Health’s local expertise with Labcorp’s global scale and advanced technology.

Ballad Health serves 29 counties across Northeast Tennessee, Southwest Virginia, Northwest North Carolina, and Southeast Kentucky, with a focus on improving rural health outcomes. Labcorp operates globally, providing laboratory services in approximately 100 countries.

Brad Price, senior vice president of regional operations and service line development at Ballad Health, noted the potential for lowering costs while offering broader access to essential services. "Labcorp’s digital tools will improve the overall patient experience, aligning with our unwavering commitment to providing high-quality, accessible healthcare," he said.

Serena Guzman, senior vice president of Labcorp’s Atlantic Division, highlighted the collaboration’s focus on underserved rural areas. "Our goal is to provide broader access to comprehensive testing and laboratory services for Ballad Health patients and physicians by leveraging our combined expertise and resources," she said.

The transaction is expected to close in December 2024, pending regulatory approvals. Until then, there will be no changes to operations or services.

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