Strategic lab partnerships: Lessons from Quest Diagnostics and University Hospitals

In an era of mounting financial pressures and evolving healthcare demands, health systems are reimagining how they allocate resources and deliver care. A recent conversation between Quest Diagnostics and University Hospitals offers valuable insights into how strategic lab partnerships can drive operational efficiency while maintaining clinical excellence.

Dermot Shorten, Senior Vice President of Strategy, M&A and Ventures at Quest Diagnostics, and David Sylvan, Chief Strategy, Innovation and Marketing Officer at University Hospitals, share candid perspectives on their ambulatory lab services partnership—from initial decision-making through implementation and beyond.

Key themes explored

Customized solutions over cookie-cutter approaches
Quest Diagnostics designed a bespoke partnership arrangement tailored to University Hospitals' unique needs rather than implementing a standard template.

Governance as the foundation
Quest established robust governance and business committees to ensure open dialogue and joint decision-making, maintaining alignment at every level throughout the partnership.

Physician engagement from day one
Quest's approach emphasizes bringing physicians into the conversation early, treating them as co-designers and partners rather than simply seeking buy-in after decisions are made.

Technology integration expertise
With Epic implementations and IT system transitions, Quest shares practical lessons learned about managing workflow disruptions and ensuring seamless operations during complex integrations.

Enabling mission-driven reinvestment
Quest structured the partnership to provide University Hospitals with resources to reinvest in core services, including funding for a new purpose-built pathology center.

Learn from real experience

This isn't theoretical discussion—it's practical wisdom from executives who navigated a complex transition successfully. Quest's approach to conducting peer-to-peer diligence, building robust roadmaps with flexibility to adjust timelines when needed, and maintaining transparency throughout the process offers actionable guidance for any health system considering similar partnerships.

Read the full article to discover Quest's specific strategies for physician change management, operational integration, and ensuring that strategic partnerships truly serve health system missions and patients' needs.