Quest Expands Testing Site Deal With Safeway

Quest Diagnostics, which has taken small steps into the retail clinic business, will expand its existing relationship with the Safeway supermarket chain into five more states. Sonora Quest, a joint operation between Quest and hospital system Banner Health, had entered into an agreement with Safeway late last year to open two draw centers on supermarket sites in Phoenix and Scottsdale. The deal materialized as Safeway, which operates stores in 35 states under a variety of names, was trying to extricate itself from a similar retail site deal with troubled California-based laboratory Theranos.

Quest and Safeway announced plans last month to open 12 additional centers in California, Colorado, Texas, Virginia and Maryland.

The draw sites, known as patient service centers, will be about 400 to 500 square feet. They will include a dedicated restroom that will include a pass-through for specimens. Customers will be provided with notification devices so they can shop in the supermarket while waiting for their laboratory service. Safeway and Quest also plan to offer co-branded financial incentives and coupons to entice more customers to both businesses.

“We’re building on what we learned in Arizona, which is that by providing laboratory testing services where patients also shop, we will make it easier for them to get the quality diagnostic insights they need in convenient locations,” said Quest Chief Executive Officer Steve Rusckowski in a statement. Financial terms of the expansion were not disclosed.

Takeaway: Quest Diagnostics, after taking a tentative step into draw centers at supermarket sites, is expanding it significantly.