The Walgreens-owned VillageMD is nearing a $9 billion merger with Summit Health, continuing a trend of consumer health brands pushing into primary care.
According to individuals familiar with the situation, an agreement on the purchase might be reached as soon as Monday, according to The Wall Street Journal. The village might be merged with Summit Health, which owns CityMD, an urgent care provider.
According to sources, the health insurer Cigna is anticipated to invest in the amalgamated business, although there is no certainty the two sides would reach an agreement. Summit Health and VillageMD representatives were not immediately available for comment.
Walgreens invested $5.2 billion in VillageMD last year, giving them 63% ownership in the firm.
As previously stated when rumors of the merger initially broke last week, this transaction takes place at a time when Walgreens and its competitors are increasing their healthcare products.
CVS said in October that it was exploring buying primary care provider Cano Health. In addition, the business recently completed an $8 billion acquisition of Signify Health, which uses analytics and technology to provide in-home care for health insurers, employers, physician groups, and health systems.
Meanwhile, Walgreens is attempting to streamline its operations into three business areas as part of its transformation into a “consumer-centric healthcare” firm.
As prescriptions down and COVID-19 vaccinations and related care are down, Walgreens, like all of its big competitors, is shifting to provide a range of treatments and services to consumers that go well beyond distributing drugs.
“We are rapidly growing healthcare in the United States and are already boosting long-term sales forecasts with a clear path to profitability beginning in fiscal year ’24,” CEO Rosalind Brewer stated during a recent earnings webcast. “It’s early, but our plan is working, and we’re making strong progress on each of our four priorities: simplifying and strengthening the organization.”
