Walgreens-backed VillageMD announces $8.9 billion deal
by Bloomberg 08 Nov 2022
by Michelle F. Davis
VillageMD, the primary-care provider controlled by Walgreens Boots Alliance Inc., has agreed to acquire Summit Health-CityMD in an $8.9 billion deal that shows the drugstore operator expand deeper into health-care services to reduce its reliance on retail.
Walgreens, which has a 63% stake in VillageMD, said it will invest $3.5 billion of debt and equity to support the combination and will remain the biggest shareholder in the combined company with a 53% stake after the deal closes, according to a statement Monday. Evernorth, a subsidiary of Cigna Corp., is also investing and will have a minority stake in the combined entity. The announcement confirms a Bloomberg News report last month that VillageMD was exploring a combination with Summit Health-CityMD.
Our company has a bold founding principle: Changing primary care in the United States so that our country can be the global leader in health outcomes regardless of background and income.
Today, in the U.S., we spend nearly $4 trillion on healthcare, the most of any country. But globally, our health outcomes rank last among developed countries.
At VillageMD, our solution is to dedicate resources where they have historically made the most difference. Instead of devoting 90% of resources to mitigating the effects of chronic conditions, we’re investing in primary care to prevent those conditions from occurring, and to lower costs across the board.
Our teams are healing healthcare itself, through the 1.6 million patients we currently serve. We are growing our footprint across the country to meet the demand for healthcare that builds trust as part of its model.
VillageMD is a platform with tools, technology, and operations that are making a measurable difference in spending—while delivering community-based outcomes at a national scale.
Through our subsidiary, Village Medical, we have become a major provider of value-based primary care services throughout neighborhoods in the U.S.
Many of our Village Medical at Walgreens practices are located alongside Walgreens pharmacies, delivering on the promise of more equitable patient access to healthcare. We’ve further extended access via primary care in the home as well as virtual visits through our proprietary telehealth platform.