Walgreens could be out in the market shopping around its VillageMD line of business before long. After closing several of its underperforming Village Medical clinics within the past year to cut costs, the pharmacy retailer suggested a potential sale of some or all of the clinics in a filing with the Securities and Exchange Commission last week. In January 2023, Summit Health-CityMD and its 370 urgent care and primary care centers became part of the VillageMD organization in an acquisition deal valued at $8.9 billion, and Walgreens continued to invest in the growth of its clinic practices, reaching about 700 locations overall in early 2023. Now as other retailers are in the throes of selling, shuttering, and scaling down their in-store clinics, Walgreens will likely need to be open-minded when connecting with potential buyers.
Forecasts based on performance: VillageMD has yet to turn a profit, according to Healthcare Dive, and Walgreens’ stock has fallen more than 59% year to date.