Walgreens becomes the majority owner of VillageMD
Walgreens will become the majority owner of VillageMD after agreeing to invest $5.2 billion in the company. The 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, with more than half of those practices in medically underserved communities. Walgreens’ partnership with VillageMD will lead to a “significant increase in access to primary care in underserved urban and rural communities” as more than 75% of Americans live within five miles of a Walgreens.
The investment increases Walgreens Boots Alliance’s ownership stake in VillageMD to 63% from 30%. VillageMD remains a standalone company, with its own board and management, and the company plans to conduct an IPO in 2022.
VillageMD currently operates over 230 practices across 15 markets, with plans to expand nationally over time. The company has experienced rapid growth, increasing revenues from $217 million in 2017 to $1.3 billion expected in 2021.
“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. 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.” – Roz Brewer, CEO, .
“Over the past two and a half years, we have worked side-by-side with Walgreens to create an integrated primary care and pharmacy model that accomplishes one primary goal: better patient care. WBA’s investment supports our ongoing commitment to providing the highest quality healthcare to all patients, including many people who don’t currently have convenient access to a primary care provider. This expanded partnership helps us accelerate our mission to deliver the best healthcare in the world.” – Tim Barry, CEO and chairman of VillageMD.