Corewell Health and Quest Diagnostics have completed their long-awaited joint venture to form Diagnostic Lab of Michigan, LLC, a new entity aimed at delivering innovative, high-quality, and affordable laboratory services across Michigan. The transaction, finalized on January 5, 2026, combines Corewell’s clinical expertise with Quest’s diagnostic leadership, including a future state-of-the-art lab facility opening in 2027.
Glimpse:
Quest holds 51% ownership and Corewell 49% in the JV. Existing labs will continue operations until a 100,000-square-foot advanced facility opens in Southfield in Q1 2027. Quest also provides comprehensive lab management (Co-Lab) for Corewell’s 21 hospitals. This partnership enhances patient access, affordability, and innovation while leveraging combined patient service networks.
Corewell Health and Quest Diagnostics have successfully closed their laboratory services joint venture, creating Diagnostic Lab of Michigan, LLC, to elevate diagnostic care for millions in Michigan. Announced on January 5, 2026, the completion follows a definitive agreement signed in August 2025, marking a strategic alignment between one of the state’s largest health systems and a national diagnostics leader.
Ownership Structure:
- Quest Diagnostics: 51%
- Corewell Health: 49%
The JV will operate from existing Corewell and Quest laboratories initially, ensuring uninterrupted service. A new 100,000-square-foot state-of-the-art laboratory at the Corewell Health Southfield Center is slated for opening in the first quarter of 2027, featuring advanced automation and high-throughput capabilities.
Additionally, Quest now delivers its full Collaborative Lab Solutions (Co-Lab) suite including reference testing, professional management, workforce optimization, supply chain, and analytics for all 21 Corewell hospitals (inpatient and outpatient). These hospital labs remain open, complementing the centralized JV facility.
Strategic Benefits:
- Broader Access: Combined patient service centers reach more communities.
- Innovation & Affordability: Scaling diagnostic advancements while controlling costs.
- Quality Focus: Merging Corewell’s academic ties with Quest’s expertise.
Jim Davis, Chairman, CEO, and President of Quest Diagnostics, said: “This joint venture combines Corewell Health’s first-rate academic expertise and deep ties to Michigan with Quest’s leadership in scaling diagnostic innovation.”
Corewell Health, a not-for-profit system with 21 hospitals and extensive outpatient services, gains enhanced lab efficiency and revenue stability. Quest advances its hospital collaboration strategy, building on similar JVs nationwide.
This deal reflects trends in consolidating lab services amid rising costs and demand for advanced testing positioning Michigan patients for improved, equitable diagnostic care.
“This collaboration will broaden access to innovative laboratory services while making them more affordable for Michigan residents.”
By
HB Team
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