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01/07/2021

Walgreens Accelerates $1B Health Care Investment

Mike Troy
Editorial Director
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Walgreens VillageMD
Walgreens is helping change the face of health care delivery in the U.S. with a new and innovative operating model.

The opening of primary care clinics at Walgreens stores will happen faster than planned after the drug store chain and its partner VillageMD renegotiated terms of seven month old agreement.

Last July, Walgreens Boots Alliance and VillageMD announced an expansion of a pilot program and a $1 billion investment to support the opening of 500 to 700 clinics over the next three years. On Jan. 6, the company said they had re-negotiated the terms of their agreement to enable WBA to accelerate its investment to increase the pace and scale of the rollout.

Plans now call for the opening of 600 to 700 Village Medical at Walgreens primary care clinics in more than 30 U.S. markets within the next four years, with the intent to build hundreds more thereafter, the companies said. That will make Walgreens is the first national pharmacy chain to offer full-service primary care clinics co-located at its stores at a large scale, according to the company.

“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.”

In December of 2020, the companies announced plans to open the next 40 full-service primary care clinics in Texas, Arizona and Florida by the end of summer 2021.