Centrex Clinical Laboratories purchased by LabCorp
NEW HARTFORD, N.Y. - Centrex Clinical Laboratories, Inc. (Centrex) and Laboratory Corporation of America® Holdings (LabCorp®) have entered into a definitive agreement under which LabCorp will acquire Centrex.
It is anticipated that Centrex’s current level of employees, as well as its core laboratory and outpatient service centers, will remain the same following the closing. Centrex will continue to operate under its name as a wholly-owned subsidiary of LabCorp. Specific terms of the agreement are not being disclosed. “Our team is very excited about the new relationship with a premier national lab such as LabCorp,” stated John Finn, president/CEO of Centrex Clinical Labs. “LabCorp is known for their results and wide range of services. They bring tremendous resources and opportunity to our community and we anticipate a smooth transition for our employees and clients.” Centrex Clinical Labs, founded in 1969, is a regional lab owned by Faxton-St. Luke’s Healthcare. Centrex has a network of four laboratories and twenty-one patient service centers throughout the Central New York Region. The company performs more than three million tests annually, and it has approximately 365 employees with annual revenues totaling $43 million in 2008. “We are seeing on the national level a need for labs to be more diverse with the ability and funding to develop groundbreaking technologies. LabCorp tests more than 370,000 specimens daily for more than 220,000 clients. Their ability to provide leading edge results for our community is of great value to our medical staff and the hospital,” noted Scott H. Perra, FACHE, president/CEO of Faxton-St. Luke’s Healthcare. The transaction is expected to close prior to the end of this year. Following the closing, Centrex will continue to be the primary lab for Faxton-St. Luke’s Healthcare and will extend its services to the more than 300 medical staff that practice at the hospital and other physicians and hospitals located in surrounding areas. “Healthcare faces incredible financial challenges throughout the country. The board of directors of Centrex and the hospital view the purchase by LabCorp as an opportunity to provide a greater service to our community as well as better position Faxton-St. Luke’s Healthcare to weather the difficult financial road ahead,” stated Joan W. Compson, chair of the Board of Directors. “We are a community hospital in one of the most highlyregulated states in the country. This year, next year, and for many years ahead, we know reimbursements will decrease, costs will increase, and we will see more charity care. We want to be in a strong position to continue to provide service to our loved ones, to our community.” The revenue generated from the sale will be invested for future use by Faxton-St. Luke’s Healthcare. “The sale of Centrex creates an incredible opportunity for the healthcare system. The Board of Directors has elected to wholly invest the funds generated from the sale and allow the fund balance to grow over time. This strategy is an investment in our future,” noted Compson. “By creating an investment savings account and allowing the money to grow, it better positions us for the future, to help us build a hospital designed for the 21st century. We have a 2015 vision of what this organization should be and this investment will help attain that vision for our employees, our medical staff and the families that we serve.” |
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