A Dallas-based attorney from Sidley Austin LLP was part of the team that represented Walgreens Boots Alliance, Inc. (WBA) in its new agreement to invest $1 billion in clinics via Village MD over the following three years, which includes a $250 million equity investment completed earlier this month. Kelly Dybala, a Sidley Austin partner in global finance based here in Dallas, was one of the deal team members.
“This rollout is a major advancement of one of Walgreens Boots Alliance’s four key strategic priorities, creating neighborhood health destinations,” Executive Vice Chairman and Chief Executive Officer (CEO) of Walgreens Boots Alliance Stefano Pessina said via a press release. “These clinics at our conveniently located stores are 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.”
With the intention to build hundreds more, the expanded partnership will open 500 to 700 Village Medical at Walgreens full-service doctor offices in over 30 United States (U.S.) markets within the next five years.
“In the U.S., we spend $4 trillion per year on healthcare, over 85 percent of that is tied to patients with chronic diseases,” Chairman and CEO of VillageMD Tim Barry said via a press release. “To improve our healthcare system and reverse the trajectory of health spending, we must meet the needs of all patients. “This partnership allows us to unleash the power of primary care doctors and pharmacists, enabling them to work in a coordinated way to enhance the patient experience.”
Of WBA’s investment, VillageMD will use 80% to primarily fund the opening of physician-led primary care clinics and build the partnership, which includes integrating with Walgreens digital assets. Once the investment is completed, it is anticipated WBA will hold about 30% of the ownership interest in VillageMD, assuming full conversion of the debt.
“The results of our initial pilot clinics highlight that these outcomes are infinitely achievable,” Barry said via a press release.