VillageMD after billions of dollars in losses and the need to focus on more profitable ventures to turn around the drugstore chain.Walgreens Boots Alliance is looking to reduce its investment in the doctor-staffed clinic operator VillageMD after billions of dollars in losses and the need to focus on more profitable ventures to turn around the drugstore chain.
Walgreens held a 53% ownership stake in VillageMD as of last Thursday, but that is on the verge of changing. The decision to scale back to less than 90 today has put the business “on a clearer path to profitability as it continues to add lives and optimize its cost structure,” Wentworth said. Walmart, for example, is closing its Walmart Health centers and last week sold its virtual care business to a healthcare technology company, saying it doesn’t see a sustainable business model in primary care. Meanwhile, Amazon has been working to grow its doctor-staffed clinics under the Amazon One Medical brand and last week folded its Amazon Clinic telehealth business into Amazon One Medical. Financial terms weren’t disclosed by Amazon nor Walmart on either of those moves.
“As it relates to VillageMD and that model, we like that model,” Wentworth told analysts last week. “That's why we've said we would continue to have some investment and participate in their growth.”
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