In the news release, Quest Diagnostics to Acquire Clinical Outreach Laboratory from UMass Memorial Medical Center; Plan to Build 'Lab of the Future' to Serve Massachusetts Health Care Community, issued 16-Oct-2012 by Quest Diagnostics over PR Newswire, we are advised by the company that the seventh paragraph, second sentence, should read "be neutral to earnings per share in 2013, and accretive to earnings per share in 2014," rather than "be neutral to earnings per share in 2012, and accretive to earnings per share in 2013" as originally issued inadvertently. The complete, corrected release follows:
Quest Diagnostics to Acquire Clinical Outreach Laboratory from UMass Memorial Medical Center; Plan to Build 'Lab of the Future' to Serve Massachusetts Health Care Community
--Relationship will provide innovation, resources, and expanded access and connectivity for patients and doctors' offices, all at reduced costs--
MADISON, N.J. and WORCESTER, Mass., Oct. 16, 2012 /PRNewswire/ -- Quest Diagnostics (NYSE: DGX), the world leader in diagnostic testing, information and services, signed a definitive agreement today to purchase the clinical outreach laboratory business of UMass Memorial Medical Center, a member of UMass Memorial Health Care and the largest health care system in Central New England.
The sale is the first step toward establishing a long-term relationship between the two organizations that could result in UMass Memorial taking a financial stake in a new entity that would develop and operate a state-of-the-art laboratory in Massachusetts in the future. The relationship will result in a number of benefits for patients, physicians, hospitals and health plans, including even higher quality service, expanded information connectivity options, and reduced laboratory testing costs.
Quest Diagnostics' full-service laboratory in Cambridge, Mass., and its Athena Diagnostics specialty neurology testing subsidiary in Worcester, Mass., will move to a new facility that is expected to be centrally located in the area. This facility, when fully operational, will perform the testing currently performed at UMass Memorial's Worcester-based outreach laboratories, the Quest Diagnostics testing currently performed in Cambridge and the testing performed by Athena. It is expected that the full transition of services will take place over the next 18 to 24 months, with details to be announced as they are finalized.In addition, the two organizations view this combination of resources as the opportunity to work together in the future on many different fronts to provide physicians, patients and the healthcare community with the highest quality diagnostic testing through the lowest cost delivery model.