Spokane Valley-based Incyte Diagnostics has agreed to acquire Pendleton, Ore.-based Blue Mountain Pathology, says Incyte CEO Tom Rehwald.

The two pathology practices signed a letter of intent to combine in early August, and Incyte is aiming for a Jan. 1 acquisition completion date, says Rehwald. He declines to disclose the terms of the acquisition.

He says Incyte, which is comprised of InCyte Pathology Inc. and its affiliate InCyte Pathology Professional PS, had wanted to acquire the business because the two business’ service areas overlapped partially in southern Washington—and because the acquisition helps Incyte Diagnostics expand into the Oregon market, he says. 

“They complemented our service area and fit nicely into it,” says Rehwald. 

Incyte Diagnostics has 42 pathologists, 27 of whom own the company, and about 225 other employees. Blue Mountain has five pathologists and 14 other staff members, says Rehwald. 

Established in 1957, Incyte Diagnostics occupies about 27,000 square feet at 13103 E. Mansfield. The independent pathologist-owned company offers services in Washington, Idaho, Oregon, Alaska, and Montana. In addition to Spokane, Incyte has offices in Bellevue, Yakima, and Walla Walla. 

Incyte first approached Blue Mountain about combining businesses five years ago, says Rehwald. Negotiations didn’t work out then, but the companies kept in touch, he says. Blue Mountain was more receptive about combining with Incyte earlier this year. 

“Things had changed enough that it made sense for them to look at becoming part of Incyte,” says Rehwald.

After the acquisition, Blue Mountain will operate under the Incyte Diagnostics name.

Pathologists examine bodily specimens to interpret the presence and effects of diseases, with pathologists often trying to determine whether a patient has cancer, he says.

Blue Mountain operates in southern Washington and northeastern Oregon. The company’ pathologists are all general pathologists, Rehwald says. Incyte Diagnostics has many pathologists who specialize in certain areas of the field, including anatomic, clinical, bone and soft tissue, breast, cardiac, and forensic pathology.

Instead of having to refer patients and specimen samples to subspecialty pathologists outside of its organization, Blue Mountain will have access to Incyte Diagnostics’ subspecialty expertise and keep those patients and specimen samples inhouse, which will reduce costs on testing for patients, says Rehwald. 

“By having this all within one company, it’s considered an internal consult, so there’s not a second charge,” he says. That provides better continuity of care, he says. 

Looking forward, Rehwald says Incyte aims to continue to expand its geographic footprint and to bring on additional test development services.