Corewell Health and Quest Diagnostics, a provider of diagnostic information services, have signed a definitive agreement to enter into a joint venture to expand access to innovative, quality, and affordable laboratory services in Michigan.
The joint venture, Diagnostic Lab of Michigan, will be based at a laboratory facility at the Corewell Health Southfield Center in Southfield. The future 100,000-square-foot facility will feature advanced technologies, such as automated microbiology and high-throughput molecular testing.
In addition, Quest will provide the full complement of its Collaborative Lab Solutions (Co-Lab), including reference laboratory testing, professional laboratory management services, laboratory workforce and supply chain management, and analytics for all of Corewell Health’s 21 inpatient and outpatient hospital labs. Existing hospitals labs located across the state will remain open after the new lab is constructed.
“We are thrilled to collaborate with Quest Diagnostics, a leader in diagnostic lab services,” says Chad Tuttle, COO of Corewell Health, which has its western Michigan headquarters in Grand Rapids.
“Quest has a proven track record of delivering innovative and high-quality diagnostic services that put patients first. This new joint venture will support our ongoing efforts to make health care more affordable and accessible.”
“The joint venture combines Corewell Health’s academic expertise and deep ties to Michigan with Quest’s leadership in scaling diagnostic innovation to improve access, affordability, and patient care,” says Jim Davis, president, CEO and chairman of Quest Diagnostics in Syracuse, N.Y.
“It also advances Quest’s strategy to expand in growth areas through collaborations with top health systems, building on our many successful laboratory joint ventures in other parts of the U.S.”
Equity ownership of the joint venture will be shared 51 percent by Quest and 49 percent by Corewell Health. Additional terms were not disclosed.
The parties expect to complete the joint venture transaction in the first quarter of 2026, and intend to begin phases of the supply chain and reference agreements in late 2025 (most aspects of the laboratory services agreement, including laboratory management, will begin in 2026).
Quest and Corewell Health expect to continue to serve providers and patients in Michigan from their existing patient service centers, which will be run by the joint venture, as well as from their existing laboratories, until the joint venture laboratory opens. The parties expect the new laboratory to be operational in the first quarter of 2027.
Corewell Health provides health care and coverage with an exceptional team of 65,000-plus employees, including more than 12,000 physicians and advanced practice providers and more than 15,500 nurses providing care and services in 21 hospitals, 300-plus outpatient locations and several post-acute facilities.
It also operates Priority Health, a provider-sponsored health plan serving more than 1.3 million members. For more information, visit corewellhealth.org.
Quest Diagnostics annually serves one in three adult Americans and half the physicians and hospitals in the United States. There are more than 55,000 employees. For more information, visit QuestDiagnostics.com.
