Boombostic Health

Ep 36: Why Hospitals Are Selling Profitable Labs to Survive


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Summary

Guest: Melissa Butterworth, CEO of Advanced Strategic Partners

Overview: Hospitals are under extreme financial pressure—but what if the answer to their budget woes is sitting right inside their own labs?

In this eye-opening episode, Melissa Butterworth—who's led over $2.4 billion in lab transactions—joins Bradley to explore the growing trend of health systems divesting lab assets. Together, they unpack:

  • Why hospitals are selling even profitable lab outreach operations
  • How to accurately assess the real value of a lab business
  • What happens post-sale—and how to unlock even more value with AI-powered lab insights.

Chapters:

04:30 Melissa's story: from LabCorp exec to M&A powerhouse

07:20 Why lab outreach programs are being sold off—even with 40%+ margins

10:50 "Compressed value": What hospital labs are really worth to buyers like LabCorp or Quest

15:40 The rise of AI in lab-driven personalized medicine

17:45 Predicting Alzheimer's from routine labs? It's already happening.

17:55 The Role of Labs in Future Healthcare

Key Quote:

"It's just as hard to play small as it is to play big. So why not go big?" – Bradley Bostic

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Boombostic HealthBy Bradley Bostic