Cigna writes down VillageMD investment amid shrinking value

Healthcare DIVE May 2, 2024
Rebecca Pifer

Walgreens’ decision to slash VillageMD’s clinical footprint has reverberated to the financial accounts of the primary care chain’s minority owner — Cigna.

Dive Brief:

• Cigna has written off more than half of its multibillion-dollar investment in VillageMD amid the declining value of the primary care chain.
• Cigna invested $2.5 billion into VillageMD in late 2022, with the goal of accelerating value-based care arrangements for employer clients by tying VillageMD’s physician network with Cigna’s health services business, Evernorth — hopefully reaping profits from shared savings as a result.
• But on Thursday, Cigna wrote off $1.8 billion of that investment, citing VillageMD’s lackluster growth after its majority owner Walgreens elected to close underperforming clinics. The writedown drove Cigna’s shareholder earnings down...

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