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PeaceHealth to cut 500 jobs as Quest Diagnostics takes on running labs in Northwest

EUGENE, Ore. - PeaceHealth expects to shed 500 jobs as part of an agreement to turn over operations of 11 laboratories to Quest Diagnostics, the companies announced Wednesday.

"In all, this strategic engagement will likely result in a reduction of approximately 500 positions within PeaceHealth Laboratories," PeaceHealth said in a FAQ about the change. "Meanwhile, Quest is encouraging PeaceHealth Laboratories caregivers to apply for up to 275 new positions to be posted in Quest’s West region, primarily in Oregon and Washington."

In Oregon, PeaceHealth has labs in Eugene, Springfield, Junction City, Roseburg and Astoria, according to its website.

PeaceHealth will continue to own the labs, which serve medical centers in Oregon, Washington and Alaska.

Quest will manage the labs.

"These agreements are designed to improve access to innovative, convenient and high-value laboratory diagnostic services for people in the Pacific Northwest," PeaceHealth said in a press release. "Physicians and patients will benefit from an enhanced test menu, which includes advanced diagnostic capabilities, and an expanded network of conveniently located patient service centers and other specimen collection sites."

The agreement is expected to be complete in the second quarter of 2017.

"PeaceHealth is committed to delivering quality, community-focused care that is both accessible and sustainable," said Liz Dunne, PeaceHealth president and chief executive officer. "In our current healthcare landscape, that sometimes means collaborating with organizations that offer the data, tools and resources necessary to stay ahead of the curve in specialized services. After thorough and thoughtful consideration, it became clear that Quest Diagnostics offers the expertise to enhance our services and increase convenient access to care in our communities."

"PeaceHealth is an innovative health system dedicated to providing outstanding healthcare. Their choice of Quest Diagnostics to deliver diagnostic information services to their communities underscores our value in enabling health systems to optimize their lab strategies in and outside of the hospital setting," said Steve Rusckowski, Quest Diagnostics chairman, president and CEO. "It also delivers on our strategy to accelerate growth and drive operational excellence through strategically aligned, accretive acquisitions. We look forward to extending our expertise, innovations and commitment to empowering better health with diagnostic insights in the Pacific Northwest."

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