VillageMD has announced its decision to acquire Summit Health, a multispecialty medical practice and parent company of urgent care provider CityMD, as reported on 7 November.
This acquisition deal is valued at $8.9 billion and marks another big move in the healthcare delivery space for Walgreens. It includes investments from Walgreens Boots Alliance and Evernorth. While Evernorth will gain a minority stake in VillageMD but Walgreens will continue to be the largest stakeholder with 53% stake in the company.
Post the closure of this deal in 2023, the combined VillageMD (backed by Walgreens) and Summit Health will offer primary care services in more than 680 provider locations in 26 markets.
Retail leaders like Walgreens have been on a mission to expand their footprint in the healthcare sector, pitching more convenient services at a lower cost. It also has plans to acquire CareCentrix, a home-care coordination company and Shields Health Solutions.
This acquisition is VillageMD’s second deal announcement this year after the purchase of chronic-care management company Healthy Interactions in February earlier in 2022.
