PeaceHealth Labs May Be on the Market
PeaceHealth Labs, formerly known as Oregon Medical Labs, could be on the chopping block. Rumors are circulating that the company is likely to be sold to Lab Corps or Quest Diagnostics.
With 12 testing laboratories across Alaska, Oregon and Washington, PeaceHealth Labs employs more than 800 employees and has 27 patient service centers. .
PeaceHealth could not be reached for comment by press time.
Laboratory Corporation of America Holdings, more commonly known as LabCorp, is an American S&P 500 company headquartered in Burlington, North Carolina. It operates one of the largest clinical laboratory networks in the world, with a United States network of 36 primary laboratories.
Quest Diagnostics Incorporated is a Fortune 500 company providing clinical laboratory services with headquarters in Madison, New Jersey, and also has collaborative agreements internationally with various hospitals and clinics. The company has approximately 44,000 employees, generates more than $7 billion in revenue and offers access to diagnostic testing services for cancer, cardiovascular disease, infectious disease and neurological disorders.
An analysis earlier this year revealed that PeaceHealth was expected to face significant net losses in its current fiscal year, with lower revenue than forecast in the budget and a significant drop in the paper value of the nonprofit’s investments, according to a confidential financial statement obtained by The Lund Report.
Vancouver-based PeaceHealth operates 10 hospitals across Oregon, Washington and Alaska, along with a large network of clinics, labs and other health-related programs. Its fiscal year runs from July 1 through June 30. The financial document obtained by The Lund Report provides a snapshot of PeaceHealth’s current year performance through April 30 – in other words, the first 10 months of the current 12-month fiscal year. While the most recent full-year financial reports for individual hospitals based in Oregon show those institutions turning large profits, including three of PeaceHealth’s four hospitals in the state in its 2014-2015 fiscal year, the parent company is not performing as well in the current year.
Click here for an examination of the last full fiscal year at PeaceHealth’s finances, which includes snapshots into the chain’s Oregon operations.
In first 10 months of the current fiscal year, or from July 1, 2015, through April 30, 2016, PeaceHealth’s patient revenue outperformed expectations. The nonprofit budgeted for $2.36 billion in inpatient revenue, $1.88 billion in outpatient revenue, and $531.6 million in other patient revenue. Instead, it received $2.41 billion in inpatient revenue, $1.89 billion in outpatient revenue, and $524.6 million in other patient revenue. The differences between budget and reality vary by only decimals, but add up fast: PeaceHealth’s total $4.82 billion in total patient revenue was $50.1 million higher than expected over the 10 month period.
Diane can be reached at [email protected].