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Walgreens sells its Rhode Island primary care practices

News
Article

Move is the latest in a series of exits from four states

Walgreens closing more VillageMD locations: ©Wolterke - stock.adobe.com

Walgreens closing more VillageMD locations: ©Wolterke - stock.adobe.com

After a much ballyhooed entry into primary care via its majority-owned VillageMD subsidiary, Walgreens Boots Alliance is exiting another state, this time Rhode Island.

Arches Medical Partners, a Boston-based medical group management company, announced that is has acquired all the primary care practices in Rhode Island previously owned by VillageMD. As a result of the purchase, Arches takes over management of eight offices and three urgent care centers in the state, which employ 50 primary care physicians serving about 75,000 patients.

VillageMD previously closed 50 Florida locations, exiting that market, after closing six in Illinois and 12 in Indiana, marking the company’s exit from those markets earlier this year.

Most VillageMD clinics are located inside or adjacent to Walgreens stores – a strategy that was meant to drive sales from consumers who could receive all their basic health needs from one location.

Walgreens Boots Alliance has invested more than $6 billion in ownership of VillageMD, and paid $8.9 billion for Summit Health-CityMD in 2023 that made VillageMD one of the country’s largest independent provider groups.

However, Walgreens financial results have not been positive. Last fall, after a net $3.1 billion loss for the fiscal year, the company announced plans to close about 60 clinics and exit five markets, expecting closures and other cost reductions to yield $1 billion in savings, according to the company. First quarter 2024 adjusted operating losses were $96 million, down from $152 million the previous year.

In the last 12 months, VillageMD has closed 79 clinics.

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