Quest Diagnostics and Corewell Health have completed a joint‑venture transaction that creates Diagnostic Lab of Michigan, LLC. Quest holds a 51% equity stake while Corewell owns 49%, giving the new company a majority ownership that aligns incentives for both parties.
The new entity will deliver laboratory services to all 21 Corewell Health hospitals in Michigan. Quest’s Collaborative Lab Solutions (Co‑Lab) platform will begin operating across the Corewell network immediately, and a 100,000‑square‑foot, state‑of‑the‑art laboratory facility at Corewell’s Southfield Center is slated to open in the first quarter of 2027.
The partnership reflects Quest’s broader strategy of expanding through collaborations with leading health systems. By combining Quest’s national scale and Co‑Lab expertise with Corewell’s deep local market presence, the joint venture is positioned to improve access to advanced diagnostics and drive operational efficiencies across the region. The Co‑Lab program has been a key growth engine for Quest, and this deal extends that momentum into a new geographic footprint.
"This joint venture advances Quest’s strategy to expand in growth areas through collaborations with top health systems," said Jim Davis, CEO of Quest Diagnostics. “It builds on our many successful laboratory joint ventures in other parts of the U.S.” Chad Tuttle, COO of Corewell Health, added, “The partnership will support our ongoing efforts to make health care more affordable and accessible.”
The transaction is expected to strengthen Quest’s competitive position against LabCorp and other diagnostic providers by deepening its service footprint in Michigan. The integration of Co‑Lab services and the new facility should yield cost synergies, faster turnaround times, and a broader patient reach, positioning both companies to capture a larger share of the growing clinical laboratory market, which is increasingly driven by digital transformation and AI‑enabled diagnostics.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.