Quest Diagnostics entered into a definitive agreement to acquire patient-engagement company Pack Health in an all-cash equity transaction, the company announced Jan. 18.
Pack Health specializes in addressing chronic conditions and comorbidities that are influenced by mental health, lifestyle behaviors, access to care and social determinants of health. Its health coaches provide personalized content to clients, such as health plans to pharmaceutical companies.
“By adding the Pack Health platform to our Extended Care services, Quest will strengthen our ability to connect diagnostic insights to actions that generate greater value, outcomes and quality, empowering affordable care,” said Quest Diagnostics Chief Executive Officer Steve Rusckowski in a prepared statement. “This transaction also builds on our growing expertise in addressing social determinants of health, such as through our Quest for Health Equity initiative, and other programs that help organizations deliver value-based care.”
Pack’s services include medication adherence coaching for pharmaceutical companies’ patient education programs, diet and exercise coaching for health plans focused on improving population health and quality metrics, and community resource outreach to address social determinants of health including food insecurity and transportation access.
The acquisition builds on Quest’s 2018 acquisition of MedXM, a provider of in-person, home-based risk assessment and monitoring services that supplements care delivered in clinical settings. MedXM is now Quest HealthConnect.
According to the Centers for Disease Control and Prevention, approximately 90% of the nation’s annual health care expenditures are for people with chronic and mental health conditions. Conditions including diabetes and heart diseases can be delayed or prevented if caught and addressed early; and social determinants of health can influence early disease detection and management.
In August 2020, Quest Diagnostics and its Quest Diagnostics Foundation announced Quest for Health Equity, a $100 million initiative to address and reduce health disparities in underserved communities. The company also helps communities access diagnostic services through a national network of relationships with federally qualified health care organizations.
Financial terms of the transaction were not disclosed. The transaction is expected to close the first quarter 2022.