Community Health Systems sells ambulatory diagnostics segment to Labcorp for $194M

A large for-profit health system has sold some of its laboratory services to Labcorp, a North Carolina-based diagnostics company. The deal, announced Tuesday, is worth $194 million. 

In a statement, Community Health Systems (CHS) said the all-cash acquisition is of laboratories in 13 states, all of which support outpatient ambulatory services. The Tennessee-based company, which operates 69 hospitals in 14 states, said divesting from the labs will allow it to better focus on its patient care business. 

“Completing this transaction with Labcorp allows our health systems to focus on core services and improve the overall patient experience, aligning with our unwavering commitment to providing high-quality, accessible healthcare to our communities," Kevin Hammons, president and interim CEO of CHS, said in the statement.

Along with its portfolio of hospitals, the health system also manages 1,000 provider practices and other clinics in 36 distinct markets. Its hospitals alone—some of which CHS owns and others it’s affiliated with, per leasing agreements—have more than 10,000 beds. The company employs over 61,000 people. 

Despite offloading the ambulatory labs, CHS confirmed it will still maintain a foothold in patient diagnostics more broadly, as many of its emergency rooms have their own laboratories. Further, it will still support patient imaging as a core part of its healthcare business. 

The deal was first announced in July and expected to formally close in April 2026. CHS said the facilities it sold will be in good hands with their former competitor in the space, as Labcorp is constantly investing in diagnostics in support of patient care services.

“Labcorp’s scale and investment in technology supports its ability to efficiently deliver outreach laboratory services to patients and healthcare consumers,” Hammons added.