Plus   Neg

Walgreens And VillageMD To Open 500-700 Physician-led Primary Care Clinics

walgreen village medical 070820 lt

Pharmacy chain Walgreens Boots Alliance, Inc. will buy a nearly 30 percent stake in primary care services provider VillageMD and open VillageMD physician-led primary care clinics in up to 700 of its stores, the companies said Wednesday.

Walgreens said it will offer full-service doctor offices co-located at its stores at a large scale, following a successful trial that commenced last year. In October 2019, the companies conducted a trial with five in-store clinics in the Houston, Texas area.

Under the expanded partnership, Walgreens will open 500 to 700 "Village Medical at Walgreens" physician-led primary care clinics in more than 30 U.S. markets in the next five years.

Walgreens will invest $1 billion in equity and convertible debt in VillageMD over these years, including a $250 million equity investment that will be completed today.

The clinics will accept a wide range of health insurance options and offer primary care across a broad range of physician services. 24/7 care will also be available via telehealth and at-home visits.

The clinics will have more than 3,600 primary care providers, who will be recruited by VillageMD.

According to the companies, more than half of the clinics will be located in areas that have shortage of healthcare professionals or are medically underserved, as designated by the U.S. Department of Health and Human Services.

While most of the clinics will be about 3,300 square feet each, some of the clinics will be as large as 9,000 square feet.

Recently, VillageMD and Walgreens announced the availability of Village Medical telehealth providers on Walgreens Find Care, an online platform that connects patients with a wide range of health services.

Pharmacy chains are increasingly investing in primary care services. In January, CVS Health Corp. said it has opened 15 new HealthHUB locations in CVS Pharmacy stores across the Greater Huston area.

CVS Health said it developed the HealthHUB store format to help people manage chronic conditions more conveniently and affordably. The store also features health and wellness products, clinical services and expertise.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT