VillageMD

VillageMD is a provider of 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 carried out two major acquisitions in 2022, including the acquisition of chronic care management company Healthy Interactions and healthcare provider Summit Health. Summit Health’s USD 8.9 billion acquisition will allow the combined company to offer care services in more than 680 provider locations in 26 markets. In March 2023, it acquired Starling Physicians for market expansion. Following the acquisition, VillageMD operates more than 700 primary care provider locations.

Key customers and partnerships

In June 2020, VillageMD and Walgreens 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%). More than half of these practices will be opened in medically underserved communities. Walgreens and VillageMD operated 200 co-located clinics, however in October 2023, Walgreens announced plans to close 60 VillageMD clinics in 2024 as part of its cost-cutting plan. 

Fundings and Financials

In July 2020, the company raised USD 275 million in a corporate round from Kinnevik AB and Walgreens Boots Alliance. VillageMD remains a standalone company and it plans to conduct an initial public offering in 2022. It achieved a revenue of USD 1.3 billion by the end of 2021, increasing from USD 217 million in 2017.