MDS Diagnostic Services, and its partners Baptist Memorial System Services Corporation and Health Tech Affiliates and Methodist Healthcare, announced the sale of the Memphis Pathology Laboratory (MPL) partnership to American Esoteric Laboratories Inc (AEL).
AEL immediately assumes full responsibility for these operations, including employees and facilities and will work with MDS to ensure a smooth transition for customers and employees. MDS will realize CDN $26 million in proceeds related to the sale of its share in the partnership, and will record a gain on sale in the fourth quarter, the company release says.
"This sale takes us one step further in repositioning our US laboratory business at MDS," said Cam Crawford, president, MDS Diagnostic Services. "This transaction allows MDS to effect an orderly exit from the Memphis laboratory market and ensures a continuation of the services that the hospitals and patients associated with this partnership have come to expect," he added.
The sale is a result of a comprehensive review of MDS US laboratory operations and a resulting change in the US laboratory strategy. This transaction does not affect its joint-venture operations at Integrated Regional Laboratories (IRL) in Florida and its relationship with the Duke University Health System Clinical Laboratories, the release added.
MDS Diagnostic Services is part of MDS Inc, an international health and life sciences company. American Esoteric Laboratories Inc (AEL) is a company designed to provide industry leading turn-around-time, informatics, personalized service, and other qualitative services in clinical reference testing to hospitals and other specialized healthcare providers.