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Walgreens buys majority stake in primary care company VillageMD

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Walgreens and VillageMD

Source: Walgreens

Walgreens Boots AllianceIt announced Thursday it had agreed to be the majority shareholder of VillageMD. opens hundreds of doctor offices with the primary care company.

VillageMD is part of this deal. VillageMD will receive $5.2 million from Walgreens. This will raise Walgreens’ stake to 30% to 63%. VillageMD remains an independent entity with its own management team and board.

Walgreens stated that it anticipates closing the deal by the end this year subject to regulatory approval.

Walgreens made the investment as part its wider effort to make their stores health-care hubs that fill prescriptions but also provide care such as regular checkups. It is moving quickly to establish Village Medical Clinics in existing Walgreens pharmacies. It is hoped to open 600 clinics for primary care in over 30 U.S. states by 2025, and 1000 by 2027.

Roz Brewer, Walgreens CEO, spoke to CNBC’s in an interview. Bertha CoombsClinics can be used to simplify patient care. Walgreens will be able to work with VillageMD’s pharmacists, and VillageMD doctors. Both will be able to access the same technology platform which pulls together their medical records. The location is convenient, just a short ride or walk away.

Brewer stated that “your physician’s recommendations will be shared directly with pharmacist.” When you look at what they can do, I think it’s an amazing gamechanger.

Most of the clinics will be about 3,300 square feet — nearly a quarter of the drugstore’s average size of 13,500 square feet.

Walgreens operates approximately 9,000 locations in America. More than 75% live less than five miles from one. Brewer said it plans to use that footprint to reach people who have few — if any — nearby doctors. Brewer stated that it intends to expand VillageMD’s clinics into rural and urban areas where there is a need.

VillageMD and Walgreens both confirmed that VillageMD will be accepting different forms of insurance. They also offer an out-of pocket option and a sliding scale to people without insurance.

Walgreens follows in the steps of its competitors by making this move. CVS HealthAnd WalmartIt is possible to do so. MinuteClinic is a CVS pharmacy that offers vaccines, as well as urgent and walk-in care. CVS plans to open more HealthHubs, offering a greater range of services such as testing for diabetes and sleep apnea management. Walmart plans to open more low-cost primary clinics. However, these are mainly located in Georgia and Florida.

Walgreens has already opened 52 clinics in primary care and VillageMD is on the verge of opening 33 more by the end 2019 calendar year. This partnership was announced by the company for the first-ever time in 2019. decided to expand the effortFive clinics have been piloted in Houston.

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