Corewell Health, Quest Diagnostics to Expand Lab Services in Michigan

Corewell Health and Quest Diagnostics have agreed to partner to expand access to innovative, quality and affordable laboratory services in Michigan.

The joint venture, Diagnostic Lab of Michigan LLC, will be based at a laboratory facility at the Corewell Health Southfield Center in Southfield, Mich. 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 laboratories. These hospitals labs are located throughout the Great Lake State and will remain open after the new laboratory is constructed.

“We are thrilled to collaborate with Quest Diagnostics,” Corewell Health Chief Operating Officer Chad Tuttle said. “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.”

Equity ownership of the joint venture will be shared 51% by Quest and 49% by Corewell Health. The JV transaction meets all of Quest’s criteria for growth, profitability and returns. Additional terms were not disclosed.

The companies expect to complete the joint venture transaction in Q1 2026. The pair intend to begin phases of the supply chain and reference agreements later this year, though 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. 

“This 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,” Quest Diagnostics Chairman/President/CEO Jim Davis stated. “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.” 

Corewell Health is a not-for-profit health system that provides healthcare and coverage through its more than 65,000 employees—including over 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—and Priority Health, a provider-sponsored health plan serving more than 1.3 million members.

Quest Diagnostics provides diagnostic insights from the results of laboratory testing to empower people, physicians, and organizations to take action to improve health outcomes. Derived from one of the world’s largest databases of de-identifiable clinical lab results, Quest’s diagnostic insights reveal new avenues to identify and treat disease, inspire healthy behaviors, and improve healthcare management. Quest Diagnostics annually serves one in three adult Americans and half the physicians and hospitals in the United States, and employs more than 55,000 workers.