NU Online News Service, Oct. 8, 2003, 10:55 a.m. EST – The Health Alliance, Cincinnati, a nonprofit company that controls six hospitals in the Cincinnati area, may sell Alliance Laboratory Services, its medical testing laboratory unit, to LabOne Inc., Lenexa, Kan.
Health Alliance says it is negotiating with LabOne because it could use extra cash and believes that, if it keeps the lab unit, it soon will have to make big capital investments to keep the unit up-to-date.
After completing the sale, Health Alliance would buy routine lab services from LabOne.
Health Alliance would continue to own six “immediate response” hospital labs, but LabOne would run the hospital labs, LabOne says.
The price of the deal and other terms were not immediately available.
Wendell O’Neal, vice president of the Alliance Laboratory unit, and Vincent DeRisio, the unit’s medical director, would continue to help run the lab unit, LabOne says.
The Health Alliance deal is the third deal that LabOne has announced in less than three months. In August, LabOne agreed to acquire an insurance testing lab from MetLife Inc., New York, and a medical document retrieval service from Protective Life Corp., Birmingham, Ala.