Walgreens push into comprehensive care picks up momentum

Nov 6, 2022, 6:27 PM | Updated: Nov 7, 2022, 9:55 am
FILE - People wait on a line at a CityMD Urgent Care location on Nov. 17, 2020, in the Forest Hills...

FILE - People wait on a line at a CityMD Urgent Care location on Nov. 17, 2020, in the Forest Hills neighborhood of the Queens borough of New York. Walgreens dove deeper into the health care sector on Monday, Nov. 7, 2022, when its VillageMD unit announced it would acquire another primary and urgent care provider, Summit Health-CityMD, in a deal worth close to $9 billion. (AP Photo/Frank Franklin II, File)

(AP Photo/Frank Franklin II, File)

              FILE - The entrance to a Walgreens is seen on Oct. 14, 2022, in Boston. Walgreens dove deeper into the health care sector on Monday, Nov. 7, when its VillageMD unit announced it would acquire another primary and urgent care provider, Summit Health-CityMD, in a deal worth close to $9 billion. (AP Photo/Michael Dwyer, File)
            
              FILE - People wait on a line at a CityMD Urgent Care location on Nov. 17, 2020, in the Forest Hills neighborhood of the Queens borough of New York. Walgreens dove deeper into the health care sector on Monday, Nov. 7, 2022, when its VillageMD unit announced it would acquire another primary and urgent care provider, Summit Health-CityMD, in a deal worth close to $9 billion. (AP Photo/Frank Franklin II, File)

Walgreens extended its push into more comprehensive health care with its VillageMD unit acquiring another urgent and primary care chain, Summit Health-CityMD, in a deal worth close to $9 billion.

Walgreens and rival CVS, two retail chains with thousands of locations, have evolved in recent years with a greater focus on overall care for customers, trying to help them avoid chronic health conditions and expensive hospital stays. That goes far beyond their historic focus on store sales and filling prescriptions.

The deal to combine VillageMD and CityMD arrives just two months after CVS Health said it would pay about $8 billion to acquire Signify Health, a technology company that sends doctors and other care providers to people’s homes to assess how they are doing and what help they might need.

Walgreens Boots Alliance, which has a 53% controlling interest in VillageMD, will invest $3.5 billion in debt and equity in support of the deal, which is expected to close in the first quarter of 2023.

In what the companies are calling a “strategic collaboration,” Evernorth, a subsidiary of health insurance giant Cigna Health, is also making an undisclosed investment in the deal and will become a minority owner of VillageMD.

Overall health has also taken on more emphasis with insurers and employers, who must foot medical bills.

Walgreens, which has about 13,000 retail pharmacy locations worldwide including 9,000 in the U.S, has invested billions of dollars in Village MD and is opening primary care practices next to its drugstores so that pharmacies and physician offices can more easily work together.

Village Medical provides primary care for patients at its traditional stand-alone practices, through its Village Medical at Walgreens practices, at home and through virtual visits. Chicago’s VillageMD and Village Medical operate in Illinois, Indiana, Michigan, Texas, Nevada, Colorado, Arizona, Florida and Georgia and Kentucky, with more than 1.6 million patients.

Summit Health and CityMD have more than 2,800 providers at more than 370 locations in New York, New Jersey, Connecticut, Pennsylvania and Central Oregon. Summit is based in New Jersey.

Walgreens, which has its headquarters outside of Chicago, also is developing centers across the United States that use automated technology to fill prescriptions and deliver them to pharmacies, giving pharmacists more time to work with customers.

When Walgreens released details of its annual financial performance last month, CEO Rosalind Brewer proclaimed it was the first year of Walgreens’ “transformation to a consumer-centric health care company.”

Citing the combination of VillageMD and CityMD, Walgreens raised its 2025 U.S. health care sales goal to between $14.5 billion and $16 billion, up from the previous forecast range of $11 billion to $12 billion.

Walgreens shares rose more than 2% Monday.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

A flyer seeking information about the killings of four University of Idaho students who were found ...
Rebecca Boone, Associated Press

Victims’ families urge love, kindness as Idaho campus mourns

As hundreds of students mourned together inside the University of Idaho’s stadium Wednesday night, family members of four slain classmates urged them to raise their eyes from grief and focus on love and the future.
13 hours ago
Associated Press

Michigan city pays driver $1,000 to settle tire marking case

A Michigan city agreed to pay $1,000 to a driver to settle a lawsuit about marking tires to catch parking violators. The deal in Bay City followed a declaration in August that a similar practice in Saginaw was illegal. U.S. District Judge Thomas Ludington said chalking tires without a warrant violated constitutional protections against unreasonable […]
2 days ago
Associated Press

Michigan city pays driver $1,000 to settle tire marking case

A Michigan city agreed to pay $1,000 to a driver to settle a lawsuit about marking tires to catch parking violators. The deal in Bay City followed a declaration in August that a similar practice in Saginaw was illegal. U.S. District Judge Thomas Ludington said chalking tires without a warrant violated constitutional protections against unreasonable […]
2 days ago
House Majority Whip Rep. James Clyburn, D-S.C., walks on Capitol Hill in Washington Thursday, Nov. ...
Associated Press

Clyburn elected House Dems’ assistant leader, averts contest

WASHINGTON (AP) — Wrapping up leadership elections, House Democrats unanimously chose Rep. James Clyburn of South Carolina for a new role Thursday, as the party whip relinquishes his current job and a younger generation of Democratic leaders takes charge in the new year. The vote for Clyburn, who is the highest-ranking Black American in Congress […]
2 days ago
House Majority Whip Rep. James Clyburn, D-S.C., walks on Capitol Hill in Washington Thursday, Nov. ...
Associated Press

Clyburn elected House Dems’ assistant leader, averts contest

WASHINGTON (AP) — Wrapping up leadership elections, House Democrats unanimously chose Rep. James Clyburn of South Carolina for a new role Thursday, as the party whip relinquishes his current job and a younger generation of Democratic leaders takes charge in the new year. The vote for Clyburn, who is the highest-ranking Black American in Congress […]
2 days ago
Associated Press

US hits Hezbollah accountants with terrorism sanctions

WASHINGTON (AP) — The Biden administration on Thursday slapped terrorism sanctions on two accountants and two companies in Lebanon for providing the militant group Hezbollah with financial services. The Treasury Department announced it would also impose sanctions on a third person for assisting Hezbollah, a U.S.-designated “foreign terrorist organization,” with weapons acquisitions. The penalties target […]
2 days ago

Sponsored Articles

Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSPA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Work at Zum Services...

Seattle Public Schools announces three-year contract with Zum

Seattle Public Schools just announced a three-year contract with a brand-new company to the Pacific Northwest to assist with their student transportation: Zum.
Walgreens push into comprehensive care picks up momentum