Skip to main content
Sister Publication Links
  • ESG: THE NEW IMPERATIVE
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • COVID-19
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Transformation
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Digital Health
  • Insights
    • ACA 10 Years After
    • Best Practices
    • Special Reports
    • Innovations
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Supply Chain
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • MORE +
    • Contact Us
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Mergers & Acquisitions
November 07, 2022 10:32 AM

Walgreens' VillageMD to buy Summit Health-CityMD in $8.9B deal

Caroline Hudson
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    cahill_walgreens_photo_i.jpg
    Bloomberg

    VillageMD, a unit of Walgreens Boots Alliance, will acquire Summit Health-CityMD for $8.9 billion, the companies announced Monday. 

    Summit Health-CityMD provides primary, specialty and urgent care across the Northeastern U.S. and in Oregon. Following the acquisition, which is expected to close Jan. 1, Chicago-based VillageMD and Summit Health will have roughly 20,000 employees in more than 680 locations across 26 markets.  Cigna subsidiary Evernorth is also involved in the deal; the companies did not disclose financial details. 

    VillageMD CEO Tim Barry called the deal an "epic milestone" in a news release.  

    VillageMD, historically a primary care group, wants to expand into multispecialty care and began serious conversations with Berkeley Heights, New Jersey-based Summit Health earlier this year, Barry said in an interview. 

    “For us, it really is just a logical extension of the journey that we’ve been on for a long time,” Barry said. “When you think about VillageMD being able to help bring these value-based care components and help accelerate the journey that Summit’s already been on, and then you think about the multispecialty capability that Summit can bring to help accelerate the journey that we’ve been on, it just starts to make all the sense in the world.” 

    Summit Health and CityMD merged in the summer of 2019. The following year, VillageMD bought Phoenix-based Summit Medical Group of Arizona, as the newly formed Summit Health-CityMD, backed by private equity firm Warburg Pincus, sought to focus on the New York and New Jersey markets.  

    Walgreens will invest $3.5 billion to support the acquisition and will now own 53% of VillageMD shares. The deal will boost the drugstore chain's earnings: Walgreens is raising its 2023 EBITDA targets to between -$50 million to $25 million, compared with the previously targeted -$240 million to -$220 million.  

    Barry said VillageMD is open to opportunities to expand into new markets. 

    Walgreens has recently sought to diversify its health segment. Last year, it spent a combined $5.5 billion to become majority owner of VillageMD and CareCentrix, a Hartford, Connecticut-based home-health benefit management firm. In September, Walgreens spent $1.37 billion to acquire the remaining stake of Shields Health Solutions, a specialty pharmacy company, after becoming a majority stakeholder last year.  

    Walgreens joins rival companies by seeking clinical care assets.  

    CVS Health is snapping up Dallas-based home health provider Signify Health for $8 billion, which would extend a portfolio that already includes health insurance, pharmacy services, virtual care and consumer goods. Amazon is acquiring San Franciso-based One Medical, a concierge primary care provider, for $3.9 billion. Federal officials are reviewing the CVS and Amazon deals. 

    Related Articles
    After Signify Health, CVS still looking for more deals
    Walgreens eyes health tech acquisition as it expands healthcare unit
    Walgreens to acquire remaining stake in specialty pharmacy company
    Walgreens to buy remaining stake in CareCentrix for $392M
    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Sanford Fairview merger
    Minnesota AG asks Sanford, Fairview to delay merger
    deal_merger.png
    Elevance Health to acquire Louisiana Blue Cross company
    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Modern Healthcare Alert: Sign up for this breaking news email to be kept in the loop as urgent healthcare business news unfolds.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • COVID-19
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Digital Health
    • Insights
      • ACA 10 Years After
      • Best Practices
      • Special Reports
      • Innovations
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Supply Chain
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • MORE +
      • Contact Us
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing