Labcorp Expands Laboratory Services Through Strategic Acquisitions

Labcorp, a leading global life sciences company, continues to strengthen its position in the laboratory services market through a series of strategic acquisitions and partnerships. The company's latest deal with Parkview Health marks another significant step in its ongoing expansion efforts, particularly in the outreach laboratory services sector.

Parkview Health Deal Extends Labcorp's Reach

Labcorp has announced an agreement to acquire the non-emergent outreach laboratory service assets from Parkview Health, a major health system operating 15 hospitals across Indiana and northwest Ohio. This acquisition will enable Labcorp to provide laboratory services to Parkview patients in these regions, leveraging both local assets and its extensive national network of sites.

The deal, expected to close next year, will see Labcorp taking charge of non-emergent lab services for Parkview patients, while the health system will continue to maintain its in-hospital labs for emergency and acute care needs. Ray Dusman, president of physician and clinical enterprise at Parkview, emphasized that the partnership would provide patients with "broader access to cost-effective, high-quality laboratory services."

Ongoing Consolidation in the Laboratory Services Market

This latest acquisition is part of a broader trend of consolidation in the outreach lab services market, with Labcorp and its rival Quest Diagnostics leading the charge. Labcorp's aggressive acquisition strategy aims to drive growth, with the company targeting 1.5% to 2.5% of annual growth from acquisitions alone.

In the first nine months of 2025, Labcorp invested $324 million in cash on acquisitions, including:

• A 15% stake in Europe's Synlab for $151.6 million
• BioReference Health's oncology diagnostics businesses for an initial $192.5 million
• Outreach assets from Community Health Systems for $195 million, covering 13 states
• Clinical lab assets from Empire City Laboratories for an initial $165 million, expanding Labcorp's presence in the New York tri-state area

Financial Impact and Future Outlook

The financial terms of the Parkview Health deal were not disclosed. However, Labcorp's recent acquisitions have already shown a positive impact on the company's growth. In the third quarter, acquisitions contributed 1.7% to growth, resulting in a total revenue increase of 8.6%.

Despite some delays in deal closings affecting full-year guidance, Labcorp CEO Adam Schechter remains optimistic about the company's M&A pipeline. During an October earnings call, Schechter noted that the hospital pipeline "remains strong," and he expects this trend to continue.

As the healthcare landscape evolves, Labcorp's strategic acquisitions position the company to capitalize on the growing demand for comprehensive laboratory services, potentially reshaping the competitive dynamics of the industry in the coming years.