Quest Diagnostics and Corewell Health Join Forces to Revolutionize Laboratory Services in Michigan

In a groundbreaking move, Quest Diagnostics Inc. (NYSE: DGX), a prominent player in diagnostic information services, has announced a definitive agreement with Corewell Health to establish a joint venture aimed at enhancing laboratory services in Michigan. The partnership, named Diagnostic Lab of Michigan, LLC, is set to improve access to innovative, quality, and affordable laboratory services across the state.

The joint venture will be headquartered at a state-of-the-art laboratory facility at the Corewell Health Southfield Center in Southfield, Michigan. The facility is designed to be expansive, covering 100,000 square feet, and will incorporate cutting-edge technologies including automated microbiology and high-throughput molecular testing capabilities. This investment represents a significant leap forward in the delivery of diagnostic services, positioning both organizations to better meet the needs of patients and healthcare providers.

Quest Diagnostics will extend its full suite of Collaborative Lab Solutions (Co-Lab) to Corewell Health. This includes reference laboratory testing, professional laboratory management services, laboratory workforce and supply chain management, and analytical services for all 21 inpatient and outpatient hospital labs operated by Corewell Health. Notably, these hospital labs will remain operational even as the new facility is constructed, ensuring continuity of service for patients throughout Michigan.

Corewell Health's Chief Operating Officer, Chad Tuttle, expressed enthusiasm about the collaboration. "We are thrilled to collaborate with Quest Diagnostics, a leader in diagnostic lab services. Quest has a proven track record of delivering innovative and high-quality diagnostic services that put patients first. This new joint venture will support our ongoing efforts to make healthcare more affordable and accessible."

Jim Davis, Chairman, CEO, and President of Quest Diagnostics, emphasized the strategic significance of the partnership. "This joint venture combines Corewell Health's first-rate academic expertise and deep ties to Michigan with Quest's leadership in scaling diagnostic innovation to improve access, affordability, and patient care. It also advances Quest's strategy to expand in growth areas through collaborations with top health systems, building on our many successful laboratory joint ventures in other parts of the U.S."

Under the terms of the joint venture, Quest Diagnostics will hold a 51% equity stake, while Corewell Health will own 49%. This structure aligns with Quest’s growth criteria, ensuring that the venture meets expectations for profitability and returns. Although additional terms of the agreement were not disclosed, both parties anticipate completing the transaction in the first quarter of 2026.

The initial phases of supply chain and reference agreements are expected to commence in late 2025, with most aspects of laboratory services management slated to begin in 2026. Until the new laboratory is operational, Quest and Corewell Health will continue to provide services to Michigan’s providers and patients from their existing patient service centers and laboratories. The new facility is projected to be operational by the first quarter of 2027.

The collaboration between Quest Diagnostics and Corewell Health marks a significant advancement in the healthcare landscape of Michigan. By combining resources and expertise, the two organizations aim to deliver exceptional laboratory services that enhance patient care and accessibility while also driving innovation in diagnostic solutions. As they prepare to embark on this journey, both entities are poised to create a lasting impact on healthcare delivery in the region.