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Walgreens CEO: 'I don't believe that change is only possible if you merge with a health plan'

Deerfield, Ill.-based Walgreens Boots Alliance Executive Vice Chairman and CEO Stefano Pessina said during a recent second quarter earnings call with investors the company must adapt to the changing healthcare environment, but that doesn't necessarily mean it must imitate its rivals and purchase a health plan, according to Forbes.

Mr. Pessina noted Walgreens plans to invest in its businesses and needs to "change a lot" as a result of industry consolidation. However, unlike its chief rival Woonsocket, R.I.-based CVS Health's $69 billion plan to purchase insurer Aetna, Mr. Pessina said merging with a health plan is not the only way to stay competitive.

"There is much to do with or without a merger with a health plan," Mr. Pessina reportedly told analysts during a call. "I don't believe that change is only possible if you merge with a health plan. There are many other models."

Mr. Pessina noted the company is not ruling out future mergers and acquisitions activity.

Mr. Pessina also did not address Walgreens' attempt to acquire the remaining roughly 74 percent stake in AmerisourceBergen the company does not already own. Executives from both organizations reportedly met in early February to discuss the proposed acquisition deal, but ultimately failed to come to an agreement.

More articles on transactions and valuations:
WSJ: Ascension, Providence St. Joseph halt merger negotiations
CHS to sell 3 Tennessee hospitals
Jefferson, Einstein Healthcare Network to explore merger

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