Walgreens Boots Alliance

Walmart

Costco

CVS Health

Target

Cencora

Membership-based, non-insurance healthcare companies helping maintain a steady state of well being.

Preventive Healthcare

VillageMD provides primary care services for patients. It also provides tools, technology, and staffing support needed for physicians to deliver high-quality services. VillageMD’s service delivery methods include traditional freestanding clinics, Village Medical at Walgreens co-located clinics, as well as at-home and around-the-clock virtual visits. It also leverages a team-based approach to care where physicians lead nurse practitioners, pharmacists, mental health specialists, and dietitians to offer a holistic care program. The technology of VillageMD includes docOS, an operating system that enables better patient care by connecting various clinical source systems with ongoing patient-generated data coupled with an AI engine to continuously analyze messages to enable patient self-care.The company made several acquisitions to expand its footprint: 1) <a href="https://sp-edge.com/updates/14347">Summit Health</a> for USD 8.9 billion in November 2022, 2) Healthy Interactions, an interactive patient education platform, in February 2022, and 3) <a href="https://sp-edge.com/updates/16968">Starling Physicians</a>, a primary care and specialty care provider, in March 2023.Key customers and partnershipsIn June 2020, VillageMD and Walgreens Boots Alliance announced a collaborative effort to open at least 600 Village Medical centers at Walgreens across more than 30 US markets by 2025. Walgreens invested USD 5.2 billion in VillageMD (from the previously announced USD 1.0 billion), raising its ownership stake to 63% (from 30%).However, as of May 2024, Walgreens had plans to close 160 VillageMD clinics as part of a cost-cutting plan.

Kinnos is a biotechnology company pioneering color technology to revolutionize how they use disinfectants. The company's first product, Highlight, is a point-of-use additive that greatly improves visibility and end-user compliance of disinfectants. Their goal is to empower people to disinfect surfaces with confidence and to provide society with peace of mind through disinfection they can see.

Solera is a preventive care benefits manager that connects patients, payers, and physicians with a new class of non-clinical healthcare providers, simply and securely. Its technology integrates a diverse ecosystem of community organizations and digital providers to manage patient identification and referrals, reimbursement and payment while supporting increased consumer engagement. Solera helps consolidate highly fragmented programs and services into one integrated network allowing health plans and medical providers to increase consumer participation while lowering associated costs. In its role, it proactively identifies the best fit chronic disease prevention program provider based on each individual’s unique needs and preferences which has proven to have a significant impact on improved patient outcomes at a fraction of the cost of traditional medical care.

Founded in 2015, Vim connects data to workflow at health care’s “last mile”: within clinical operations at the point of patient care. Health plans, patients, and medical providers of every size – from independent practitioners to integrated delivery systems – use Vim software to connect data and care across the health system. Vim’s mission is to power affordable, high quality health care through seamless connectivity. For more information, please visit getvim.com.

VillageMD provides the tools, technology, operations, and staffing support needed for physicians. It works with physician groups, independent practice associations, and health systems to improve quality, deliver a first-rate patient experience, and lower costs in the communities they serve.

Launched in 2010, Birchbox is the discovery commerce platform redefining the retail process by offering consumers a personalized way to discover, sample, shop, and learn about the best products and brands available.  Birchbox members have first-touch experiences with products each month and access to educational content to help them get the most out of their products.  Top brands like Kiehl’s, Benefit, Deborah Lippmann, and Stila have partnered with Birchbox.

Walgreens Boots Alliance is the first global pharmacy-led, health and wellbeing enterprise.  Walgreens Boots Alliance was created through the combination of Walgreens and Alliance Boots in December 2014. This transaction brought together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted healthcare services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years.

<div> Walgreens Boots Alliance (NASDAQ: WBA) is one of the largest integrated healthcare, pharmacy, and retail companies across the US. It is also one of the world&rsquo;s largest purchasers of prescription drugs and many other health and well-being products. The company was established in 2014 as a successor to Walgreen Co. and began trading on the Nasdaq the same year. Walgreens Boots Alliance generated revenue of USD 139 billion in FY2023 (year ending August 31). The company&rsquo;s operations comprise three segments: 1) US Retail Pharmacy, 2) International, and 3) US Healthcare. The US Retail Pharmacy segment includes Walgreens, health and wellness services, and specialty and home delivery pharmacy services. The International segment comprises pharmacy-led health and beauty retail businesses outside the US and pharmaceutical wholesaling and distribution in Germany. The US Healthcare segment, launched in FY2022, offers a personalized, omnichannel healthcare experience that aims to improve health outcomes and reduce costs for providers and payers. The US is the company&rsquo;s largest market, accounting for ~84% of total revenue in FY2023, followed by the UK (~7%) and Germany (~8%). Walgreens forecasted adjusted sales for FY2024 to range between USD 141 billion and USD 145 billion. The company aims to reduce total emissions by 30% by FY2030 (base year FY2019). </div>

5 Things Walgreens Boots Alliance Can Do to Turn Things Around

Walgreens

Well Ventures

Platforms offer a subscription-based or B2B-sponsored, evidence-based program for managing a specific long-term health condition.

DPCs offer value-based primary and preventive care services addressing whole-person (social, mental, physical) needs for a fixed monthly or annual fee paid by either the patient, insurance provider, or employer.

Companies offer B2B and D2C evidence-based treatments delivered via software programs to prevent and manage a variety of chronic conditions.

Tools that collect and analyze real-time patient data that supports healthcare providers with clinical decisions,  improves patient outcomes, and reduces medical errors.

Companies offer independent physician practices and hospitals with the tools (patient engagement, care coordination, administrative services) to help manage and improve clinical health outcomes of a defined group of individuals or large populations.

Platforms are used to track and gather patient health-related information via either a connected device or at-home test kits to detect the early onset of disease and identify any abnormalities in readings—but do not include a treatment plan.

More important now than ever, telehealth will long outlast the pandemic that drove its growth.

Telehealth

Real-time collection of patients’ health-related data using any remote patient monitoring device combined with general telemedicine services to reduce readmission rates. 


A platform that facilitates the transmission of patient data to different locations for further evaluation and interpretation by medical specialists. 


A digital platform that offers specialty care services to address the specific needs of a patient or demographic, including consultations where patients are generally reluctant to meet practitioners face-to-face.

Primary care through virtual consultations for general health-related concerns using a digital platform or mobile app. 

Companies developing B2B software solutions for patient engagement, care navigation, practice management, and electronic health records integration to facilitate telehealth services for healthcare providers. 

Redefining hospital care with the comfort of home

Hospital-at-Home

Digital platforms that connect patients with in-person medical care providers in the comfort of their homes and support care delivery

Platforms enabling healthcare providers to order in-home therapies, durable medical equipment, and provide virtual acute care services

Companies offering a full-stack of in-home medical services including health evaluations, virtual and in-person visits for a variety of needs, and care coordination by leveraging data analytics

Platforms providing accessible lab testing solutions for a range of conditions, allowing patients to conveniently perform tests in their own homes

Digital pharmacies that deliver prescription medications directly to patients' homes and platforms that help track and manage medication adherence

Solutions enabling hospitals to establish hospital-at-home programs and providing workflow management tools for home care providers

ANALYST_QUICK_TAKE

INCUMBENTS_PRESENT

<div>
 
 Walmart has recently announced the closure of its Walmart Health and Walmart Health Virtual Care divisions due to the lack of financial sustainability. Having started in 2019, Walmart Health operated 51 health centers across five states. The increasing operation costs and a challenging reimbursement environment have made the business unprofitable, leading to this decision.
 
 The closure's specifics, including the dates to shut down each center, have not been decided yet. Until then, the currently operational centers will continue to offer their services.
 
 In the meantime, Walmart will use the experiences gained from Walmart Health to continue providing health and wellness services through its almost 4,600 pharmacies and around 3,000 vision centers. The company also plans to introduce more services like the Walmart Healthcare Research Institute, among other health programs.
 
</div> Analyst QuickTake: 
 This closure marks the latest downsizing of virtual healthcare operations by prominent digital health providers in the recent past. Just last week, UnitedHealthcare announced the <a href="https: 
//sp-edge.com/updates/28844"> closure </a> of its virtual care business, a decision that was driven by business profitability concerns. In October 2023, Walgreens also announced the planned <a href="https: 
//sp-edge.com/updates/22774"> closure of several of its VillageMD clinics </a> , and in August 2022, Amazon announced the <a href="https: 
//sp-edge.com/updates/12594"> closure of its Amazon Care offering </a> in favor of pivoting toward its <a href="https: 
//sp-edge.com/updates/11801"> acquisition of One Medical </a> for a more complete offering. This string of closures could suggest that big-name healthcare providers might reconsider their entries into the retail healthcare space and reassess strategies to maintain profitability.

Walmart closes Health and Virtual Care Centers due to unprofitability

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Boehringer Ingelheim

To bring Boehringer Ingelheim’s Phase III clinical trial to communities through Walgreens pharmacy clinical trial centers, aimed at improving access to trials

Kinnos

Partnership Fund for New York City

Kapor Center for Social Impact

Pioneer Healthcare Partners

Uber

Walgreens, in collaboration with DoorDash and Uber, has introduced free Same Day Rx Delivery for HIV prevention and treatment medications within 15 miles of participating pharmacies nationwide.

Uber Health has partnered with Walgreens to offer free same-day delivery of Paxlovid, an oral COVID-19 treatment, to the majority of Americans, around 92% of the population.

Solera Health

Anthem Venture Partners

Elevance Health

Optum Ventures

Sequoia Capital

GreatPoint Ventures

Premera Blue Cross

Frist Cressey Ventures

To enhance customer and colleague experience, and accelerate cloud innovation on next-generation network through a multi-year agreement for network transformation and managed services.

To provide free one-on-one mentoring sessions to at least 1,000 small businesses across the UK, in partnership with Digital Boost, to help them acquire new digital skills and boost their confidence during the pandemic.

McKesson

To create a joint venture combining their respective pharmaceutical wholesale businesses in Germany, Alliance Healthcare Deutschland (AHD) and GEHE Pharma Handel (GEHE).

VillageMD

Kinnevik

Microsoft

By using Microsoft’s technology alongside data from across its loyalty scheme, ecommerce and store network to create a more personalised shopping experience for its customers.

Walgreens will upgrade up to 12 of its stores with “digital health corners,” which will display healthcare-related devices and gadgets. Some or all of them would be underpinned by Microsoft technology.

Walgreens Boots Alliance

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