Aurora Breaks Into Pacific Northwest Market With Pathology Practice Acquisition

Aurora Diagnostics has entered the Pacific Northwest market, acquiring Pacific Pathology Associates. Based in Salem, Ore., about 50 miles south of Portland, Pacific has eight pathologists in practice and 25 employees in total. There are no layoffs planned post-transaction, according to Bruce Walton, Aurora’s Chief Operations Officer. Terms of the deal were not disclosed.

“Joining the Aurora Diagnostics team provides Pacific Pathology Associates with additional resources and new capabilities to serve our community,” said Clark Mc- Donald, M.D., who leads the Pacific Pathology Associates ownership group. “Aurora has a reputation for affiliating with high quality labs that maintain strong local relationships. This, together with our excellent team and unique role in serving this community, will help make this a successful relationship for our clients.”

The deal makes Pacific the fifth lab or pathology practice acquired by the Palm Beach Gardens, Fla.,-based Aurora since 2013. It now operates 25 labs in total in 17 states, primarily in the South, Southwest, and New England. The only other locales it has remotely near Oregon are three sites in Nevada and Arizona.

“This is a new market footprint in which we hope to expand,” Walton said. Altogether, Aurora now serves 85 hospitals and has 150 physicians on staff. Pacific uses a 3,500-square-foot laboratory it operates in space leased from Salem Hospital, to which it provides services. It also has an outreach business in gastrointestinal, genitourinary pathology and women’s health in a roughly 50-mile radius around Salem.

“As the only pathology group of its kind in the region, Pacific Pathology Associates is relied upon to provide exceptional pathology services. We will help the group reach out to new clients and maintain its reputation for premier inpatient and outpatient pathology services,” said Aurora CEO Daniel D. Crowley in a statement.

Aurora said it would upgrade Pacific Pathology’s services and infrastructure, although Walton declined to provide any specifics. He did note that the company would continue to seek opportunities to grow. “We are actively looking to add to our team, including through acquisitions,” he said

Takeaway: Aurora has continued on its transaction roll, breaking into a new market and region as a result.