In July of 2020, Walgreens and VillageMD announced an expansion of their partnership and the intent to open 500 to 700 clinics, supported by WBA’s investment in VillageMD over three years of $1 billion in equity and convertible debt, which included an initial $250 million equity investment. WBA and VillageMD have now re-negotiated the terms of their agreements to enable WBA to accelerate their investment to increase the pace and scale of the rollout of the clinics and to adjust certain other terms. As of today, WBA’s $750 million investment has been completed.
“Walgreens is focused on creating the pharmacy of the future, providing a broad and meaningful range of high-quality, affordable healthcare services to our patients and customers,” said Stefano Pessina, executive vice chairman and CEO, Walgreens Boots Alliance. “Through these conveniently located clinics at our neighborhood stores, we will uniquely integrate the pharmacist as a critical member of VillageMD’s multi-disciplinary care team to provide patients with personalized and coordinated care.”
“Together with Walgreens, we remain steadfast in our commitment to providing accessible, coordinated primary care in more communities nationwide,” said Tim Barry, chairman and CEO at VillageMD. “Village Medical at Walgreens offers a full continuum of care to meet patients’ needs with a physician-led team of experienced providers. Our high-tech, high-touch model delivers exceptional and personal care to more patients at a time when coordinated primary care is most critical.”
Last month the companies announced plans to open the next 40 full-service primary care clinics in Texas, Arizona and Florida by the end this coming summer 2021. The companies said many of the clinics will be located in medically underserved areas, allowing Village Medical at Walgreens clinics to serve a patient population that includes many people who may not have access to healthcare and are at greater risk of health disparities. The clinics will accept a wide range of health insurance options, offering cost-effective and comprehensive primary care to meet the full continuum of healthcare needs, according to the companies, which added that healthcare services are being offered in a variety of ways, allowing patients to access Village Medical care and support through in-person, at home and via Village Medical telehealth providers on Walgreens Find Care online platform.