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 a news statement issued on Monday (Nov. 7), the firm has entered into a binding agreement to buy Summit Health-CityMD. Village will be merged with Summit Health, which owns CityMD, an urgent care provider.
“For decades, Summit Health-CityMD has been a pioneer in providing integrated, multi-specialty treatment. In the statement, VillageMD CEO and Chairman Tim Barry stated, “We are pleased to work side by side with their 13,000 strong team who are passionately devoted to delivering the greatest outcomes for millions of patients.”
Last year, Walgreens invested $5.2 billion in VillageMD, giving it a 63% stake in the company.
As reported when the news of the merger initially broke last week, it comes 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 a $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.”
