Walgreens Plans to Open Hundreds of Primary Care Clinics in Next Five Years
Walgreens Boots Alliance (WBA) and VillageMD are working together to launch hundreds of physician-led primary care clinics in more than 30 U.S. markets over the next five years.
The idea, according to officials from both companies, is to make Walgreens the first national pharmacy chain to offer full-service doctor offices co-located at its stores at a large scale. This rollout follows a trial with five in-store clinics in the Houston, Texas area, which produced very strong results after opening last November including high patient satisfaction, with Net Promoter Scores over 90, officials said.
This expanded partnership between the companies will open 500 to 700 “Village Medical at Walgreens” physician-led primary care clinics in the next five years, with the intent to build hundreds more thereafter, according to company leaders. Walgreens has nearly 9,300 locations across the U.S.
The clinics will integrate the pharmacist as a key member of VillageMD’s multidisciplinary team to deliver care to patients, and will be staffed by more than 3,600 primary care providers, who will be recruited by VillageMD. The Chicago-based VillageMD provided a range of services to support primary care delivery.
The clinics will accept a wide range of health insurance options, and offer comprehensive primary care across a broad range of physician services, according to officials. Additionally, 24/7 care will be available via telehealth and at-home visits. More than 50 percent will be located in health professional shortage areas and medically underserved areas/populations, as designated by the U.S. Department of Health and Human Services (HHS).
More specifically, according to a CNBC report, “Patients will be able to visit the Village Medical at Walgreens clinics for a wide range of medical services from annual checkups to walk-in appointments if they feel sick. Each clinic will have nine exam rooms, a waiting area and a four-person physician-led staff that coordinates with store pharmacists.”
Most of the clinics will be approximately 3,300 square feet each, with some as large as 9,000 square feet. They will optimize existing space in the store, which will also still provide a vast range of retail products to customers, according to company officials.
“In the U.S., we spend $4 trillion per year on healthcare, over 85 percent of that is tied to patients with chronic diseases. To improve our healthcare system and reverse the trajectory of health spending, we must meet the needs of all patients. This partnership allows us to unleash the power of primary care doctors and pharmacists, enabling them to work in a coordinated way to enhance the patient experience,” Tim Barry, chairman and CEO, VillageMD. “The results of our initial pilot clinics highlight that these outcomes are infinitely achievable,” said in a statement.
Walgreens’ top rival, CVS, has more than 1,100 MinuteClinic locations across the country, providing retail clinic services. CVS is expected to also open up 1,500 HealthHub locations operating throughout the U.S. by the end of 2021. These HealthHub stores, geared towards wellness and personal care, will include MinuteClinic services.
VillageMD and Walgreens also recently announced the availability of Village Medical telehealth providers on Walgreens Find Care, which is an online platform that connects patients with a wide range of health services.
Under the terms of the new agreement, WBA will invest $1 billion in equity and convertible debt in VillageMD over the next three years, including a $250 million equity investment to be completed on July 8. Of WBA’s investment, 80 percent will be used by VillageMD to fund the opening of the clinics and build the partnership, including integration with Walgreens digital assets. It is anticipated, assuming full conversion of the debt, that WBA will hold an approximately 30 percent ownership interest in VillageMD at the completion of the investment, according to the company press release.
