Walgreens Boots Alliance is investing $1 billion in a Chicago-based main care startup because the pair plan to open at the very least 500 clinics at shops in additional than 30 U.S. markets.
The deal expands on the Deerfield-based drugstore chain’s partnership with VillageMD, which began with 5 in-store clinics within the Houston space.
On the 500 to 700 new “Village Medical at Walgreens” clinics set to open within the subsequent 5 years, with plans to construct a whole bunch extra, Walgreens pharmacists shall be an integral a part of the care workforce, the businesses stated in a press release immediately. The clinics, staffed by VillageMD, will settle for a spread of medical insurance plans and greater than half shall be in areas the place there’s a scarcity of medical professionals. The mannequin additionally will supply companies across the clock nearly and within the house.
VillageMD, led by co-founder and CEO Tim Barry, goals to assist medical doctors and sufferers higher handle continual circumstances to enhance scientific outcomes and management prices. It has grown quickly prior to now a number of years—snapping up doctor teams and coming into into partnerships reminiscent of this one.
“This rollout is a significant development of certainly one of Walgreens Boots Alliance’s 4 key strategic priorities, Creating Neighborhood Well being Locations,” Walgreens CEO Stefano Pessina stated within the assertion. “These clinics at our conveniently situated shops are a major step ahead in creating the pharmacy of the long run, assembly many important well being wants all underneath one roof in addition to by means of different channels.”
Walgreens will make investments $1 billion in fairness and convertible debt in VillageMD over the following three years—together with a $250 million fairness funding to be accomplished immediately—with the expectation that it’ll ultimately maintain a few 30 % possession curiosity within the startup, in line with the assertion. VillageMD will use 80 % of the funds to execute the expanded partnership.
A lot of the clinics shall be about three,330 sq. toes, with some as giant as 9,000 sq. toes, utilizing current house in every retailer, the assertion says.
With greater than 1,000 clinics in 9 states, VillageMD and its subsidiary Village Medical handle $four billion in complete medical spend.
The deal comes as rival CVS Well being plans to broaden its personal main care presence, opening new HealthHubs in its shops by means of 2021. The HealthHub mannequin presents an expanded vary of well being companies goals to assist sufferers higher handle their well being between physician visits.