Explore the diagnosis The groups announced Tuesday that they will acquire patient engagement company Pack Health.

Pack Health tracks patients’ medication adherence, diet, exercise, mental health and other issues with health plans and pharmaceutical companies in an attempt to improve patients’ chronic conditions. The undisclosed all-cash equity deal builds on Quest Diagnostics’ 2018 acquisition of remote monitoring company MedXM, which will create a new service line for Quest, executives said.

“Quest Diagnostics and Pack Health have complementary capabilities that, when combined, will enhance our ability to help health plans and other risk-taking organizations deliver value-based care,” said Dermot Shorten, senior vice president of strategy, mergers and acquisitions and venture capital At Quest Diagnostics, wrote in an email.

MedXM (now Quest HealthConnect) assesses patients’ health risk factors to refine treatment options. Health plans, especially Medicare Advantage and administering Medicaid, use this data to coordinate care with physicians, generate risk scores, and track outcomes.

Quest Diagnostics has also been managing the health system’s laboratory operations and building related data services.company get Mercy’s outreach lab business last year and join forces A 2019 partnership with healthcare data analytics firm hc1 to try to prevent health systems from ordering too many or too few tests.

Shorten wrote that Pack Health will operate as part of Quest Diagnostics’ expanded care division, primarily focused on health programs seeking to strengthen its value-based care programs as well as the pharmaceutical company’s medication management and education programs.

Quest Diagnostics’ revenue to grow 14% to $10.8 billion in 2021, in part due to COVID-19 Testing Services, the company said in a preliminary earnings report. The Pack Health transaction is expected to close in the first quarter.