EUGENE — The latest partnership between PeaceHealth Laboratories and Quest Diagnostics is the newest instance of the enormous world firm taking on a regional well being system’s diagnostic labs.
Quest, a Fortune 500 firm based mostly in New Jersey, just lately struck similar deals with different teams, together with MemorialCare Health System in Southern California, Montefiore Health System in New York City and HCA Healthcare within the Denver space.
Betting that PeaceHealth, and native sufferers and well being suppliers, will acquire greater than they lose with the change to Quest, PeaceHealth agreed to a two-half take care of Quest, which is anticipated to take impact in May.
PeaceHealth will proceed to personal — and Quest will handle — labs at 10 PeaceHealth hospitals in Alaska, Washington and Oregon, together with the Sacred Heart Medical Centers in Springfield and Eugene, and hospitals in Cottage Grove and Florence.
And Quest will purchase, for an undisclosed value, PeaceHealth’s nonhospital lab enterprise, which incorporates about 10 labs, principally in clinics, all through Eugene and Springfield.
Similar acquisitions have helped spur growth at Quest, which had revenues of $7.52 billion final 12 months.
Quest has spent about $1 billion on 10 acquisitions since 2012, and it intends to proceed making strategic purchases to enhance revenues by 1 p.c to 2 p.c a 12 months, the corporate informed buyers late final 12 months.
PeaceHealth is a nonprofit, Catholic-affiliated well being system based mostly in Vancouver, Washington. It owns and operates hospitals, medical doctors’ teams and labs in Oregon, Washington and Alaska.
PeaceHealth’s alliance with Quest will finish PeaceHealth’s many years-lengthy historical past of working its personal labs. The deal will remove 413 PeaceHealth Labs’ jobs, together with 271 in Oregon, with most of these in Lane County. Other lab cuts are potential PeaceHealth labs outdoors Oregon.
And the deal will destroy a Lane County useful resource, as extra checks are shifted away from PeaceHealth Labs’ central lab in Springfield to Quest labs in Seattle and different websites.
Quest has mentioned it’s going to rent 275 workers in Oregon and Washington, nevertheless it hasn’t indicated what number of of these positions will probably be in Lane County.
A PeaceHealth Labs worker, who requested not to be named for worry of jeopardizing severance pay, mentioned solely a few quarter of employees at PeaceHealth’s nonhospital labs have utilized with Quest. Some who’ve been supplied jobs mentioned Quest pays lower than PeaceHealth — up to 90 cents an hour much less in a single case, the unnamed employee mentioned.
While some native well being care suppliers expressed confidence within the new alliance, others had doubts, predicting that turnaround instances for a lot of necessary checks would change from hours now to days with Quest.
Quest spokeswoman Wendy Bost mentioned the corporate is working to type out which checks can be carried out in Seattle and which might be dealt with at Quest’s speedy-response labs in Portland, Salem and Roseburg.
“There are numerous factors in that decision making and turnaround time is one of them,” she mentioned.
“We’re committed to a smooth transition, and PeaceHealth and Quest Diagnostics will be working closely together to ensure high standards (for quality and innovation) are met,” Bost mentioned.
Health care within the United States, together with lab providers, is within the throes of nice change.
“Technology advancements, competition, regulations, the need for sustained capital investment and other factors have created profound challenges” for laboratory providers, PeaceHealth spokeswoman Marcy Marshall mentioned.
New Medicare guidelines that may cut back laboratories’ Medicare funds beginning subsequent 12 months is one instance of fixing rules that factored into PeaceHealth’s determination to crew up with Quest, she mentioned.
PeaceHealth started assessing lab providers nationwide about two years in the past to discover a companion to guarantee excessive-high quality lab providers for sufferers over the lengthy-time period, PeaceHealth officers mentioned.
They mentioned teaming up with Quest will allow PeaceHealth to faucet into Quest’s huge community of labs and diagnostic providers, Quest’s funding in new gear and applied sciences and its innovation.
With 43,000 workers, Quest is among the many largest diagnostic labs within the United States. It additionally has labs in India, England, Mexico and Puerto Rico, in accordance to its web site. The firm says its services and products are utilized by prospects in additional than 130 nations.
Fortune journal has named Quest one of many “World’s Most Admired Companies” within the well being care business for 2 years in a row. Winners are chosen by business friends.
“We’re considered an employer of choice in many communities,” Quest spokeswoman Bost mentioned, including that the corporate presents aggressive compensation and advantages.
But the agency has been topic to authorized challenges over time. A category-motion go well with filed by northern California phlebotomists, alleging that understaffing pressured them to work unpaid additional time, led to a $2.35 million settlement final 12 months, in accordance to revealed reviews.
Quest is thought for innovation. Last 12 months it partnered with the Safeway grocery chain to open small 400- to 500-square-foot affected person providers facilities subsequent to Safeway’s in-retailer pharmacies.
The websites are handy for purchasers and environment friendly for Quest, which is piggybacking on Safeway’s properties as a substitute of getting to safe its personal.
Quest had 56 Safeway facilities by the top of final 12 months and expects to have 200 of them by the top of this 12 months, Bost mentioned.
Customers are “pleased by the convenience of it,” she mentioned.
“They might sign in, do their shopping and carry a buzzer that tells them when to go in and get testing,” she mentioned.
Quest operates one in all these facilities within the Safeway on Coburg Road in north Eugene. The middle is open 7:30 a.m. to midday and 1 p.m. to 4:30 p.m., Monday via Friday.
Quest has a web site in Springfield’s Gateway space that may be a coaching middle for phlebotomists, or blood-draw specialists, Bost mentioned.
Quest additionally will personal and function different former PeaceHealth Labs’ websites within the Eugene-Springfield space.
As a part of the PeaceHealth deal, Quest will purchase PeaceHealth’s nonhospital labs in neighborhood clinics in Eugene and Springfield. They will embrace some labs in clinics operated by PeaceHealth Medical Group, PeaceHealth’s medical doctors’ teams.
Quest additionally presents expertise, together with its MyQuest by Care360 Internet utility, as a comfort for purchasers.
The app permits sufferers to schedule testing and think about outcomes on their sensible telephones.
Nearly 3 million sufferers monitor and entry their lab outcomes and well being knowledge via the corporate’s Quest by Care360 affected person portal and cell app.
But the comfort is not with out danger. In late November, a hacker broke into the system, accessing private info, equivalent to names, dates of beginning, lab outcomes and telephone numbers, of 34,000 sufferers.
The firm mentioned no Social Security, bank card, insurance coverage or different monetary info was compromised.
Quest mentioned it could take steps, together with hiring a number one cybersecurity agency, to stop further breaches.
Another Quest innovation has potential to assist each sufferers and well being care suppliers.
Quest teamed up with Maryland-based tech firm Inovalon on Data Diagnostics, a well being-care analytics device that suppliers can use whereas they’re seeing sufferers.
Data Diagnostics has acquired quite a few accolades and final 12 months was acknowledged as “Most Innovative Product of the Year for Health Care” within the “Best in Biz” award annual competitors, judged by journalists and business analysts.
The expertise works with the digital well being file a health care provider already makes use of, Bost mentioned.
It matches a affected person’s scientific profile towards a whole lot of high quality measures and different “big-data” metrics, providing insights to medical doctors, typically in seconds.
A health care provider could be sitting with a affected person going via the affected person’s historical past, Bost mentioned. Data Diagnostics may display the affected person file and notify the physician, for instance, that the affected person is 51, however has by no means been screened for colon most cancers. Typically a primary colonoscopy is beneficial when sufferers flip 50.
It helps medical doctors adhere to pointers for preventive care and helps sufferers get high quality care, Bost mentioned.
That’s an instance of the type of innovation that Quest Diagnostics is offering nationally, which Bost mentioned may probably make its means to insurers, well being care suppliers and sufferers within the Eugene-Springfield neighborhood.
— Sherri Buri McDonald, Eugene Register Guard