Walgreens to expand venture into primary care clinics
DEERFIELD -- Walgreens Boots Alliance Thursday said it has agreed to make an additional investment in Chicago-based VillageMD to 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 $5.2 billion investment and the partnership will lead to a significant increase in access to primary care in underserved urban and rural communities -- more than 75% of Americans live within five miles of a Walgreens, the drugstore chain said.
The investment increases WBA's ownership stake in VillageMD to 63% from 30%. VillageMD remains a stand-alone company, with its own board and management, and the private company plans to sell stock in 2022 by conducting an initial public offering.
Through its partnership with VillageMD, Walgreens is the first national pharmacy chain to offer full-service primary care practices on a large-scale basis, with primary care doctors and pharmacists co-located at its stores under one roof.
"The best health care is deeply rooted in local communities, and Walgreens is committed to expanding convenient access to high-quality and affordable health care services to our patients and customers in our neighborhood locations," said Roz Brewer, CEO, Walgreens Boots Alliance.