Walgreens To Open Physician Clinics Inside Stores Via VillageMD Partnership

Walgreens Boots Alliance will open 500 to 700 full-service doctors’ offices, co-located at Walgreens stores, through a partnership with VillageMD. The Village Medical at Walgreens locations will be established in more than 30 U.S. markets during the next five years, with the intent to build hundreds more in the future.

The clinics will be staffed by more than 3,600 primary care providers recruited by VillageMD, and will integrate Walgreens pharmacists as critical members of the team. The clinics will accept a wide range of health insurance options and offer comprehensive primary care across a range of physician services, as well as 24/7 telehealth and at-home visits. More than 50% of the clinics will be located in Health Professional Shortage Areas and Medically Underserved Areas/Populations, as designated by the U.S. Department of Health and Human Services.

“This rollout is a major advancement of one of Walgreens Boots Alliance’s four key strategic priorities, Creating Neighborhood Health Destinations,” said Stefano Pessina, Executive Vice Chairman and CEO, Walgreens Boots Alliance. “These clinics at our conveniently located stores are a significant step forward in creating the pharmacy of the future, meeting many essential health needs all under one roof as well as through other channels.”

Most of the clinics will be approximately 3,300 square feet each, with some as large as 9,000 square feet. They will optimize existing space in the store so patients can also shop for retail items during their visits. The rollout follows a trial with five in-store clinics in the Houston area, which produced high patient satisfaction and Net Promoter Scores over 90.


Additionally, Walgreens will invest $1 billion in equity and convertible debt in VillageMD over the next three years, including a $250 million equity investment to be completed immediately. About 80% of the funds will be used to open the clinics and build the partnership. Walgreens expects to hold an approximately 30% stake in VillageMD at the completion of the investment.



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