Walgreens Boots Alliance Makes $5.2B Investment in VillageMD

Deerfield IL

18 October, 2021

12:47 PM

Description

DEERFIELD, IL — Walgreens Boots Alliance is hoping a $5.2 billion investment will accelerate the opening of at least 600 Village Medical at Walgreens primary care practices in more than 30 U.S. markets by 2025 and 1,000 by 2027. The Deerfield-based company said the partnership with VillageMD will lead to a "significant increase" in access to primary care in underserved urban and rural communities, with more than 75 percent of Americans live within five miles of a Walgreens, according to a news release. Walgreens said the investment will advance its strategic position in the delivery of value-based primary care, a $1 trillion, fast-growing segment of the healthcare system. More than half of the new practices will be located in medically underserved communities. The investment increases WBA's ownership stake in VillageMD to 63 percent from 30 percent. VillageMD remains a standalone company, according to the news release, with its own board and management, and the company plans to conduct an IPO in 2022. Through its partnership with VillageMD, Walgreens is the first national pharmacy chain to offer full-service primary care practices with primary care physicians and pharmacists co-located at its stores all under one roof at a large scale. "The best healthcare is deeply rooted in local communities, and Walgreens is committed to expanding convenient access to high-quality and affordable healthcare services to our patients and customers in our neighborhood locations,"Roz Brewer, CEO, Walgreens Boots Alliance, said. "VillageMD is a leader within the fast-growing, value-based primary care segment with high rates of patient satisfaction and a talented management team who share our strategic vision of the central role that primary care can serve to improve patient outcomes and lower costs." VillageMD currently operates over 230 practices across 15 markets, with plans to expand nationally over time, according to the news release. The company has experienced rapid growth, increasing revenues from $217 million in 2017 to $1.3 billion expected in 2021. WBA and VillageMD have 52 co-located primary care practice locations currently open, and will have more than 80 open by the end of this calendar year. RELATED: Walgreens Raising Starting Pay To $15 Per HourWalgreens Offering Retail Products Through Uber EatsWalgreens Launches Vaccine Appointment And Ride Service With UberStay Patched In! Get Patch real-time email alerts for the latest Deerfield newsCheck out the Events Calendar for what's going on in DeerfieldPatch Mobile: Get app for iPhone and Android