The Walgreens Boots Alliance will invest $ 5.5 billion in two companies as part of the pharmacy chain’s ongoing efforts to diversify its healthcare business, the company said Thursday.
Walgreens is invests $ 5.2 billion at VillageMD, a primary health care startup in which it invested $ 1 billion last year. Walgreens will also invest 300 million dollars to the home health management company CareCentrix.
“Better healthcare is deeply rooted in local communities and Walgreens is committed to expanding convenient access to high-quality, affordable healthcare for our patients and clients in our neighboring areas,” Walgreens Boots Alliance CEO Rose Brewer said in a statement. news release…
Walgreens is now the majority owner of both companies. The pharmacy’s share in VilliageMD has grown from 30% to 63%, and the company now controls 55% of CareCentrix. Both companies will remain independent. VillageMD plans to go public next year. Walgreens has the option to acquire the remaining capital of CareCentrix in the future.
Walgreens has already opened 52 primary health care clinics through VillageMD and plans to open more than 80 locations by the end of the year. In total, Walgreens and VillageMD plan to open at least 1,000 clinics in Walgreens stores by 2027.
Walgreens’ main competitor, CVS Health, is also expanding its presence in primary health care by opening new HealthHubs in its stores.
CareCentrix works with health systems and health plans to coordinate products and services for home-based postpartum care. The company provides transitional care, home care, home infusion and palliative home care to 19 million patients.
The investment propels Walgreens’ forays into the post-acute care and home care segments and supports Walgreens Health, a new division combining pharmacy, primary care, postpartum care and virtual care.
“In support of the launch of Walgreens Health, we continue to invest strategically in pharmacy and healthcare solutions that can improve coordination of care and improve health outcomes while lowering overall costs,” Brewer said. “CareCentrix’s suite of home care solutions will expand our capabilities in this important segment.”
Walgreens revenues for the fourth quarter of fiscal year 2021, which ended August 31, were $ 34.3 billion, an increase of 12.8%. reported on Thursday… Sales of health and wellness products rose 14%, thanks in part to home tests for COVID-19, vitamins, and cough, cold and flu remedies. The company’s operating income for the quarter rose 49.7% to $ 910 million.
Walgreens plans to complete investments in VillageMD by the end of the year and in CareCentrix in early 2022.