Business

Walgreens buys majority stake in primary care company Village MD

Walgreens and Village MD

Source: Walgreens

The Walgreens Boots Alliance announced Thursday that it has agreed to become the majority owner of Village MD. This is to open hundreds of clinics in primary care companies.

As part of the deal, the drugstore chain will invest $ 5.2 billion in Village MD. This will increase Walgreens ownership from 30% to 63%. VillageMD will continue to be an independent company with its own management team and board of directors.

Walgreens said it expects the deal to close by the end of this year, awaiting regulatory approval.

This investment is Walgreens’ wide range of transforming stores into healthcare destinations with doctors who can not only fill out prescriptions, but also create prescriptions and provide other types of care such as annual exams. It is part of our efforts. The company is accelerating its plans to open a Village Medical Clinic at its existing Walgreens drugstore. The goal is to have at least 600 primary care clinics in more than 30 US markets by 2025 and 1,000 primary care clinics by 2027.

In an interview with CNBC’s Bertha Coombs, Walgreens CEO Rosa Brewer said the clinic would simplify patient care. She said Walgreens and Village MD have pharmacists and doctors to work with. They have access to the same technology platform that organizes medical records. And they are in a convenient location and can be reached on foot or by car.

“Your doctor’s recommendations are shared directly with your pharmacist,” Brewer said. “Given what we can do, I think it’s a game changer.”

Most clinics are approximately 3,300 square feet. That’s almost a quarter of the average drugstore size of 13,500 square feet.

Walgreens has approximately 9,000 stores in the United States, with more than 75% of Americans living within five miles of one of them. Brewer said he plans to use the footprint to reach people who have few (if any) doctors nearby. He said he plans to open more than half of the Village MD clinics in urban neighborhoods and rural communities that are not medically adequately serviced.

Walgreens and Village MD state that clinics accept different types of health insurance and offer out-of-pocket options, along with a sliding scale for those who do not have insurance.

With this move, Walgreens is following in the footsteps of competitors such as CVS Health and Wal-Mart. Many CVS stores already have Minute Clinic, which manages vaccines and offers emergency care appointments for bringing in. CVS is also turning more stores into Health Hubs. HealthHub has a wide range of medical services, including sleep apnea testing and diabetes management. Wal-Mart is opening more and more primary clinics with low-cost models, but so far they are concentrated in the Georgia, Florida and Chicago areas.

Walgreens and Village MD have already opened 52 primary care clinic locations, with 33 additional locations scheduled to begin by the end of the calendar year. The company announced its first partnership in 2019 and decided to expand its efforts after piloting five clinics in the Houston area.

Walgreens buys majority stake in primary care company Village MD

Source link Walgreens buys majority stake in primary care company Village MD

Back to top button