Labcorp Acquires Clinical Ambulatory Business of Caromont Health
BURLINGTON, N.C., May XX, 2021 — Labcorp (NYSE: LH), a leading global life sciences company, today announced that it has entered into a comprehensive laboratory services relationship with CaroMont Health, a top regional health system based in Gastonia, N.C.
As a part of the transaction, Labcorp has acquired CaroMont Health’s clinical outreach laboratory business and will provide reference testing for all CaroMont facilities and clinics. Additionally, Labcorp has entered into a laboratory management agreement with the health system.
“Joining forces with CaroMont Health supports local clinicians and will drive value-based patient initiatives in the Charlotte region,” said Traci Butler, senior vice president of Labcorp Diagnostic’s Atlantic Division. “Through this expanded partnership, we are able to enhance CaroMont’s mission to be the community’s most-trusted health care provider through expanded scientific offerings, broader access to services and enhanced data platforms.”
CaroMont Health’s vast network of physician practices, urgent care locations, and hospice and emergency facilities is anchored by CaroMont Regional Medical Center in Gastonia, N.C. CaroMont Health offers convenient and compassionate care for every stage of life, provided through skilled, dedicated staff and a commitment to making the health care experience more comfortable, transparent and caring.
“CaroMont is committed to providing our physicians and patients with the highest quality services and offerings,” said Danny Wharton, vice president of clinical services for CaroMont Health. “We are always looking at ways to better serve our community. Our expanded relationship with Labcorp allows us to continue to deliver best-in-class laboratory services while building upon the strong reputation CaroMont has established.”
In addition to providing laboratory services to the community-based clients and patients previously served by CaroMont, Labcorp will provide CaroMont with reference testing services. Labcorp will also offer management services for CaroMont’s hospital and clinic-based laboratories.
Labcorp is a leading global life sciences company that provides vital information to help doctors, hospitals, pharmaceutical companies, researchers, and patients make clear and confident decisions. Through our unparalleled diagnostics and drug development capabilities, we provide insights and accelerate innovations to improve health and improve lives. With more than 70,000 employees, we serve clients in more than 100 countries. Labcorp (NYSE: LH) reported revenue of $14 billion in FY2020. Learn about Covance by Labcorp at www.Covance.com, and Labcorp at www.Labcorp.com, or follow us on LinkedIn and Twitter @Labcorp.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements, including but not limited to statements with respect to the transaction, expected closing timing, projected growth of arthritis in the U.S. population, the anticipated impact of the transaction, and the potential to expand the Vectra test’s availability.
Each of the forward-looking statements is subject to change based on various important factors, many of which are beyond the company’s control, including without limitation, the risk that the transaction may not be completed in a timely manner or at all; the failure to satisfy the conditions to closing the transaction, including the receipt of certain regulatory approvals; the occurrence of any event, change or other circumstance that could give rise to the termination of the transaction agreement; our ability to implement our plans, forecasts and other expectations with respect to the Vectra testing business after completion of the proposed transaction; the impact of the COVID-19 pandemic and its impact on our business and financial condition and on general economic, business, and market conditions; our ability (or inability) to execute on our plans to respond to the COVID-19 pandemic, competitive actions and other unforeseen changes and general uncertainties in the marketplace; changes in government regulations, including health care reform; customer purchasing decisions, including changes in payer regulations or policies; other adverse actions of governmental and third-party payers; changes in testing guidelines or recommendations; federal, state, and local government responses to the COVID-19 pandemic; the effect of public opinion on the company’s reputation; adverse results in material litigation matters; the impact of changes in tax laws and regulations; failure to maintain or develop customer relationships; our ability to develop or acquire new products and adapt to technological changes; failure in information technology, systems or data security; adverse weather conditions; the number of revenue days in a financial period; employee relations; personnel costs; and the effect of exchange rate fluctuations. These factors, in some cases, have affected and in the future (together with other factors) could affect the company’s ability to implement the company’s business strategy and actual results could differ materially from those suggested by these forward-looking statements. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements.
The company has no obligation to provide any updates to these forward-looking statements even if its expectations change. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. Further information on potential factors, risks and uncertainties that could affect operating and financial results is included in the company’s most recent Annual Report on Form 10-K and subsequent Forms 10-Q, including in each case under the heading RISK FACTORS, and in the company’s other filings with the SEC. The information in this press release should be read in conjunction with a review of the company’s filings with the SEC including the information in the company’s most recent Annual Report on Form 10-K, and subsequent Forms 10-Q, under the heading MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.