Community Health Systems, Inc. (Company) (NYSE: CYH) announced today that its subsidiary, CHS/Community Health Systems, Inc. (CHS), has entered into a definitive agreement with Labcorp (NYSE: LH), pursuant to which Labcorp will acquire select assets and assume certain leases of the ambulatory outreach laboratory services of CHS health systems in 13 states, including certain patient service centers and in-office phlebotomy locations, for $195 million cash.

When the transaction is complete, CHS patients and providers will benefit from broader access to Labcorp’s comprehensive testing and laboratory services, including its specialty testing menu, robust data analytics and digital tools. CHS health systems will continue to operate their inpatient and emergency department laboratories and will continue to provide laboratory services for hospital-based services, such as imaging and pre-admission testing.

"We are excited about this transaction with Labcorp, which allows us to focus on our core services and improve the overall patient experience, aligning with our unwavering commitment to providing high-quality, accessible healthcare to our communities," said Kevin Stockton, Executive Vice President, Operations and Development for CHS. “Labcorp’s scale and investment in technology supports its ability to efficiently deliver outreach laboratory services to patients and healthcare consumers.”

“Labcorp and Community Health Systems share a deep commitment to improving the health and lives of the communities we serve, and our goal with this agreement is to enhance the patient and provider experience with increased access to high-quality laboratory services,” added Mark Schroeder, EVP and President, Diagnostics Laboratories and Chief Operations Officer, Labcorp. “This acquisition will allow us to leverage the strengths of both our organizations to positively impact healthcare for communities across the U.S.”

The organizations are committed to working together to plan and implement a smooth, thoughtful transition that maintains continuity of services for patients, hospitals, clinicians and clients, while providing direct access to the additional capabilities of Labcorp.

This relationship is similar to other strategic relationships that Labcorp has with a range of local and regional health systems that have enhanced services for patients and providers.

The transaction is subject to customary closing conditions and applicable regulatory approvals. The companies anticipate closing the transaction in the fourth quarter of 2025. Until that time, there will be no changes in operations or services.