Walgreens’ next healthcare target could be urgent care

The news: Walgreens-backed VillageMD is in talks to acquire medical group Summit Health in a deal that would value the combined companies at between $5 billion and $10 billion, according to a Bloomberg report.

Breaking down the players: Both organizations have accelerated their healthcare businesses.

• Walgreens more than doubled its ownership stake in VillageMD last year—from 30% to 63%­—with a $5.2 billion investment. Walgreens said at the time it planned to open 1,000 VillageMD clinics by 2027.
• Per the retailer’s Q4 earnings call, there are 150 co-located clinics now open, with a goal of getting to 200 by the end of 2022. VillageMD also operates a few hundred clinics without Walgreens.
• Summit Health was created...