November 2009

Catholic Health Initiatives Establishes Partnership with Reference Laboratory

CHI acquired a 25% equity position in Pathology Associates Medical Laboratories (PAML), a full-service medical reference laboratory based in Spokane, WA. Pathology Associates Medical Laboratories is owned and operated by Providence Health & Services, a nonprofit Catholic health system with 27 hospitals in the western U.S. Providence and CHI have complementary missions and shared faith-based values of compassion and excellence,” said Kevin Lofton, president and CEO of CHI. Pathology Associates Medical Laboratories currently serves more than 100 hospitals, performs more than eight million tests annually and has five outreach laboratory joint venture partnerships with hospital systems.

“This partnership enables CHI to develop a national business line in laboratory services, which is part of our strategic objective to grow and diversify through the development of nationally directed, non-hospital business lines,” said Lofton.

CHI’s equity investment will help accelerate growth in the outreach laboratory business through the development of joint ventures with CHI hospitals. This will position MBOs to meet evolving laboratory testing needs in their markets while benefiting from significant economies of scale and sharing of leading practices. Pathology Associates Medical Laboratories also provides a lab-centric financial infrastructure, innovative connectivity solutions, and the esoteric testing menu CHI needs to develop and differentiate its national laboratory strategy.

As part of the agreement, CHI-owned facilities will transition to using Pathology Associates Medical Laboratories as their primary referral testing laboratory. “The lab’s capabilities are an excellent match for the current and future laboratory needs of CHI’s medical facilities, affiliated physicians and patients,” said Lofton. For more information, contact Paul Edgett,