Tim Barry, the CEO of VillageMD, has left the company following a rocky few years mired by its failure to help execute on a healthcare push launched by majority-owner Walgreens Boots Alliance.
It’s unclear exactly when Barry left the Chicago-based company, but VillageMD Chief Operations Officer Jim Murray replaced him “effective immediately,” assuming all day-to-day leadership responsibilities, spokeswoman Molly Lynch said in a statement to Crain’s today.
Related: Village Medical president named CEO at Presbyterian Healthcare
“VillageMD reaffirms its commitment to providing high-quality, accessible healthcare services for individuals and communities across the United States,” Lynch said. She declined to provide additional information about the transition.
Barry co-founded VillageMD in 2013 as a primary care company focused on value-based care, growing to hundreds of locations across the country.
Promising to take it to the next level, Deerfield-based Walgreens purchased a majority share of of the company in 2021 for $5.2 billion. Walgreens said at the time that the partnership would help it bring healthcare services to its retail pharmacy stores and stand up an entirely new healthcare segment. Part of the collaboration has included attaching hundreds of VillageMD clinics directly to Walgreens locations.
But Walgreens has pulled back on that strategy amid slower-than-anticipated growth in its healthcare segment. Slow patient growth and changes to Medicare reimbursement models interrupted VillageMD’s growth, executives have previously told investors.
Not a Modern Healthcare subscriber? Sign up today.
To address financial woes, VillageMD has closed dozens of underperforming primary clinics across the country, including in Illinois, laying off workers as a result. Shuttered locations have included both stand-alone clinics and those attached to Walgreens stores.
In March, Walgreens revealed that it significantly over-invested in VillageMD when it disclosed a nearly $6 billion impairment charge on the asset.
This summer the company disclosed it was considering selling its entire stake in VillageMD. Walgreens said in an August U.S. Securities & Exchange Commission filing that options include selling all or part of the VillageMD businesses, restructuring it or other strategic opportunities. Any sale proceeds would help Walgreens shore up its balance sheet, Walgreens CEO Tim Wentworth told investors in October.
A Walgreens spokesman told Crain's today that the company "look(s) forward" to continuing to partner with Murray as interim CEO.
"Jim has been integral in helping lead the company’s turnaround as VillageMD makes meaningful progress and positions itself for profitable growth," the spokesman said. "Walgreens Boots Alliance is committed to keeping VillageMD, Summit Health and CityMD doctors, team members and patients top of mind and remains focused on building trusted relationships that create healthier futures for team members, customers, patients and communities."
Walgreens stock closed up 3.7% today but is down 66% from the beginning of the year, trading at $9.
Forbes first reported news of Barry's departure.
