Dive Brief:
- Walgreens-backed VillageMD sold 11 locations in Rhode Island to Boston-based medical group management firm Arches Medical Partners for an undisclosed sum, Arches said Wednesday.
- The practices, which include about 75,000 patients, joined Arches on March 2, according to VillageMD’s website.
- The deal follows VillageMD clinic closures. The primary care chain recently exited Florida — once one of chain’s largest markets — and plans to withdraw from its home state in Illinois next month.
Dive Insight:
Walgreens has been shedding VillageMD locations as it focuses on reaching profitability in its U.S. Healthcare division, which includes the primary care chain as well as businesses like at-home care provider CareCentrix and specialty pharmacy Shields Health Solutions.
In the fall, Walgreens’ executives said the company would shutter 60 VillageMD clinics in underperforming markets. The retail and pharmacy giant reported it was about halfway through the planned closures on a first quarter earnings call in January, when the U.S. Healthcare unit posted a $96 million adjusted operating loss.
The closures come as the retail and pharmacy chain has conducted multiple rounds of layoffs, closed distribution centers and reworked its leadership team.
CEO Tim Wentworth, a former Cigna executive, joined Walgreens in October — a strategic hire as the company shifts its focus to healthcare services.
Early last month, Walgreens replaced the head of its healthcare unit, naming a former CVS Health leader who had managed the company’s healthcare strategy, including parts of CVS’ 2018 acquisition of insurer Aetna.
Walgreens will release its second quarter financial results next week.
