Just a few days ago Quest announced they would be restructuring the company with a few hundred layoffs. Today we have the news that they are buying the lab business at UMass who themselves earlier this year in February announced they were cutting 700 to 900 jobs. At that time in February they also said they were looking to sell their lab business ant it appears Quest is the buyer.
In September UMass again wrote about selling their lab operation and the cut of 140 jobs and stated they hoped to break even this year. UMass has had a decline in health insurance payments as well as the number of patients they treat.
So we have layoffs at both ends here with this acquisition maybe not directly related but in the end we still have the same results, people losing jobs. Quest’s lab in Cambridge and it’s Athena Diagnostics group will both move to a centralized location, so the lab testing for UMass will be officially outsourced to Quest via the purchase. BD
Quest Diagnostics said it has signed a definitive agreement to buy the clinical outreach business of UMass Memorial Medical Center for an undisclosed amount.
Financial terms of the transaction are expected to be completed in the next 90 days. It is expected the full transition of services will take place over the next 18 to 24 months, with further details to be announced as they are finalized.