Walgreens pulls VillageMD clinics out of Indiana

Walgreens' VillageMD will exit the Indiana market and close a dozen clinics in the state in January 2024, which is in line with its majority owner's cost reduction plans. 

"After careful consideration and analysis, we have made the decision to exit the Indiana market," a VillageMD spokesperson told Becker's Dec. 18. "We are committed to helping our teams during this transition and we are working diligently to care for our patients during this transition." 

VillageMD, which is majority owned by Walgreens Boots Alliance, had opened new sites in Indiana dubbed Village Medical in 2021. The market exit is in line with Walgreens' plans to cut at least $1 billion in costs, announced in October, which will involve moving VillageMD out of a handful of markets and the closure of around 60 clinics in fiscal 2024. 

"As we exit these non-strategic markets, our long-term focus will be on achieving density in those regions with the greatest potential to drive future profitability growth and where we can best serve patients with our consolidated set of assets," John Driscoll, executive vice president and president of U.S. healthcare at Walgreens, said about the cost-cutting efforts in the fall.

VillageMD is in 26 markets with 680 locations, with many practices located next to Walgreens pharmacies. It completed its $8.9 billion acquisition of physician practice group Summit Health in January 2023, aiming to create one of the largest independent provider groups in the country.

VillageMD's market exits may come in multiple forms, including sales and hybrid equity arrangements, the company noted. 

"High-quality care for our patients is always our top priority and we are working diligently to ensure this is a smooth transition for them," the VillageMD spokesperson told Becker's. Patients in need of prescription refills before Jan. 19, 2024, are asked to call the practice or complete a refill request using the patient portal of Village Medical app, continuing to use the pharmacy of their choice.

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