Quest Diagnostics ( DGX Quick Quote DGX - Free Report) recently inked a deal to partner with New Jersey- based integrated healthcare network, Hackensack Meridian Health “HMH.” This collaboration is aimed to enhance the quality and value of diagnostic services offered to patients and doctors.
Per the global diagnostic information service provider, Quest Diagnostics will manage laboratory operations and perform reference testing for 11 Hackensack Meridian Health hospitals under the long-term full laboratory management agreement.
Notably, the financial and other terms of the agreement have not been disclosed yet.
More on Hackensack Meridian Health
Hackensack Meridian Health offers a full spectrum of life-enhancing care and services to create and sustain healthy and vibrant communities. The company has a wide range of network throughout the state which includes ambulatory care centers, surgery centers, home health services, long-term care and assisted living communities, ambulance services, lifesaving air medical transportation, fitness and wellness centers, rehabilitation centers, urgent care centers and physician practice locations.
Significance of the Collaboration
With this collaboration, Quest Diagnostics intends to deliver high quality, convenient and accessible health care to meet communities expectations. This partnership will help boost the COVID-19 testing capacity for the health care network through quicker turnaround time for the acquisition of testing materials and diagnostic results.
The collaboration between Quest Diagnostics and Hackensack Meridian Health will enable high-quality health care services and open up new opportunities to improve patient outcomes.
This partnership is in line with the company’s existing strategy to focus on collaborating with complementary business that helps the company broaden its scope of delivering high quality laboratory experience to clients. This partnership is likely to strengthen Quest Diagnostics' portfolio.
Recent Notable Developments
In November 2020, Quest Diagnostics partnered with two hospitals Montefiore Nyack Hospital and its renal physician practice Highland Medical Rockland health system to enhance the quality and value of diagnostic services. Additionally, the company entered into a professional laboratory services relationship with Goshen Hospital in Indiana, to provide supply chain management expertise.
In September 2020, Quest Diagnostics launched QuestDirect through which individuals can now purchase COVID-19 test online. This is a highly sensitive molecular diagnostic technology that has received emergency authorization from the FDA for the detection of the RNA of SARS-COV-2.
Per a report by Grand View Research, the global clinical laboratory services market size is expected to reach $326.97 billion by 2025 at a CAGR of 6.4%. Rise in chronic diseases and surge in demand for accurate disease diagnosis are primarily driving the market.
Shares of Quest Diagnostics have gained 13.1% in the past year compared with the
industry’s growth of 21.4%. Zacks Rank and Other Key Picks
Quest Diagnostics currently carries a Zacks Rank #2 (Buy).
A few similar-ranked stocks from the broader medical space include
Addus Homecare Corporation ( ADUS Quick Quote ADUS - Free Report) , Chemed Corporation ( CHE Quick Quote CHE - Free Report) , DaVita Inc. ( DVA Quick Quote DVA - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.
Addus Homecare has a projected long-term growth rate of 15%.
Chemed has a projected long-term growth rate of 10.10%.
DaVita has a projected long-term growth rate of 18.30%.
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