VillageMD, which is owned by Walgreens, is on the verge of a $9 billion merger with Summit Health, following a trend of consumer health brands expanding into primary care.
According to a news release released, the company has reached a contractual deal to acquire Summit Health-CityMD. Summit Health, which owns CityMD, an urgent care service, will combine Village.
“Summit Health-CityMD has been a pioneer in offering integrated, multi-specialty care for decades.” “We are happy to work side by side with their 13,000 strong team who are passionately driven to providing the best outcomes for millions of patients,” said VillageMD CEO and Chairman Tim Barry in a statement.
Walgreens invested $5.2 billion in VillageMD last year, giving them a 63% ownership in the firm.
As previously reported, the transaction takes place at a time when Walgreens and its competitors are expanding their healthcare offerings.
CVS said in October that it was exploring buying primary care provider Cano Health. Furthermore, the company just completed a $8 billion acquisition of Signify Health, which provides in-home care for health insurers, employers, physician groups, and health systems using analytics and technology.
Meanwhile, as part of its transformation into a “consumer-centric healthcare” company, Walgreens is attempting to streamline its operations into three business areas.
Prescriptions are down, as are COVID-19 vaccinations and related care. Walgreens, like all of its major competitors, is shifting to offer a variety of treatments and services to customers that go far beyond drug distribution.
“We are rapidly growing healthcare in the United States and are already raising long-term sales forecasts with a clear path to profitability beginning in fiscal year ’24,” said CEO Rosalind Brewer during a recent earnings webcast. “It’s early, but our strategy is working, and we’re making significant progress on each of our four priorities: simplification and organization strengthening.”
