Walgreens Partners With LabCorp In New Diagnostic Testing Deal
 
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Walgreens Partners With LabCorp In New Diagnostic Testing Deal
 
 
  https://www.forbes.com/sites/brucejapsen/2017/06/28/walgreens-partners-with-labcorp-in-new-diagnostic-testing-deal/#7b940dd152a1
 
June 28 2017
 
Walgreens Boots Alliance Wednesday announced a new collaboration with diagnostic testing firm LabCorp "to develop and operate patient service centers within" certain Walgreens drugstores.
 
The deal is the first for Walgreens since its troubled relationship with Theranos ended last year . Walgreens collaboration with LabCorp will initially begin this summer with five patient service centers in Denver and one in Morrisville, North Carolina. A seventh location in Deerfield, Illinois will open by the end of the year. Financial terms of the partnership weren't disclosed.
 
"The customer-centric culture and nationwide footprint of Walgreens are a perfect match for LabCorp and the patients we serve," said LabCorp CEO David King. "This significant collaboration will enhance LabCorp's patient engagement in key markets across the country and offer increased access to LabCorp's broad range of laboratory services as we execute our mission to improve health and lives."
 
Walgreens effort to provide lab-testing services in its stores is part of an ongoing transformation into becoming more of a healthcare services company than a retailer. Walgreens tried to bring diagnostic tests to its stores in Arizona via its Theranos partnership but that deal ended following investigations into the accuracy of Theranos blood tests.
 
Walgreens said the lab testing services with LabCorp will compliment its pharmacy and healthcare clinics as part of an overall mission to provide "greater access to affordable health care service." The centers will be branded "LabCorp at Walgreens" and offer specimen collection services for LabCorp testing, the companies said.
 
The deal also has potential for LabCorp, which is a major competitor to Quest Diagnostics. LabCorp had nearly $9.5 billion in annual revenue last year and diagnostic testing is often under pricing pressure from health insurance companies and government health programs looking to reduce costs.
 
LabCorp already has about 1,750 existing patient services centers and, depending on how the Walgreens partnership grows, could tab into a drugstore chain with more than 8,000 stores.
 
Walgreens is poised to get even bigger should the Federal Trade Commission approve its acquisition of Rite Aid. Walgreens management is expected to provide an update on the Rite Aid acquisition Thursday when the company releases its third-quarter earnings.

 
 
 
 
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