Advisory Board March 6, 2024
In a shift from its earlier expansion plans, Walgreens is now closing many of its VillageMD primary care clinics in several markets as part of a large-scale cost-cutting initiative. Advisory Board’s Colleen Wagner and Eliza Dailey explain what these closures mean for both retailers’ and traditional providers’ healthcare goals.
Walgreens shuts down VillageMD clinics in several markets
In 2020, Walgreens invested $1 billion in VillageMD and took a majority stake in the company. In 2021, the company made an additional $5.2 billion investment. At the time, Walgreens had planned to expand VillageMD through hundreds of co-locations inside its existing stores. By 2023, Walgreens had opened over 200 co-located clinics.
However, poor performance in Walgreens’ healthcare division, which experienced $1.73...
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