Quest Diagnostics partners with Safeway following Theranos downfall

Quest Diagnostics has formed a partnership with Safeway in a bid to introduce diagnostic testing to 12 Safeway stores throughout America. Quest Diagnostics's new partnership has been formed less than a year after its $350m venture with Theranos collapsed as the blood testing startup began to face issues with the FDA and CMS.

Madison, N.J.-based Quest Diagnostics announced a partnership last week with grocery chain Safeway that will bring diagnostic testing to 12 grocery stores in California, Colorado, Texas, Virginia and Maryland.

The Quest Patient Services Centers will operate next to Safeway's pharmacies, and will bring patients conveniences such as the ability to shop while they wait and participate in customer reward program. The diagnostics company is adding this partnership after it launched a joint venture with Phoenix-based Banner Health last year.

"Our collaboration with Quest Diagnostics represents Safeway's commitment to becoming a health and wellness destination for our customers, giving patients convenient access to quality laboratory testing and a unique shopping experience," Mark Panzer, senior vice president of pharmacy, health and wellness at Safeway, said in a press release. "This is a natural extension of the robust health and wellness offerings found throughout our stores. We're excited that our customers will have access to healthy foods, pharmacy services and diagnostic testing under one roof."

Quest, which is one of the largest diagnostic companies in the U.S., is stepping into the partnership with Safeway less than a year after the grocer's $350 million partnership with Palo Alto, Calif.-based Theranos collapsed. Theranos, a blood testing startup that promised to upend the diagnostics industry, has faced a slew of issues over the past year, both in the media and with regulators such as the FDA and CMS. The Safeway-Theranos partnership had trouble getting momentum and the grocery chain backed out in the months after a pair of investigative reports published by The Wall Street Journal alleged the company overstated the capabilities of its technology.

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