Health Transformation Institute (HTI)
Joaquim Cardoso MSc*
Chief Researcher and Editor
November 7, 2022
*MSc from London Business School — MIT Sloan Masters Program
Source:
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Blake Madden @ Hospitalogy
November 7, 2022
Nothing like a $8,900,000,000 healthcare deal to get your blood pumping on a Monday morning!
VillageMD (63% owned by Walgreens) is buying Summit Health for $8.9B, which is a large, multispecialty physician group and urgent care platform in the Northeast and Oregon.
This is a huge deal for VillageMD and Walgreens.
Summit is a fantastic asset and the acquisition aligns perfectly with the strategy that $WBA laid out in Q3 as its pharmacy biz fizzles out.
VillageMD (63% owned by Walgreens) is buying Summit Health for $8.9B, which is a large, multispecialty physician group and urgent care platform in the Northeast and Oregon.
So what exactly does VillageMD get in Summit?
- 2,800 providers
• 80+ specialties
• 13,000 employees
• 370 locations (urgent cares + clinics)
In 2019, Summit merged with CityMD. The combined asset backed by Warbus Pincus is now selling to VillageMD.
Since 2018, Summit Health has doubled in size from 170+ locations and 1,000+ providers to 370+ and 2,800+
In 2018, Summit Medical Group operated with 1,069 providers and generated around $208M in revenue.
It made around $8.7M in EBITDA seeing 4.35 million patients that year.
The acquisition gives Walgreens — thru VillageMD — a major foothold into healthcare services land.
Overall, Walgreens / VillageMD is moving into healthcare with a cobbled together group of assets, but if VillageMD can successfully integrate Summit, they’re ahead of schedule on executing their healthcare strategy.
Overall, Walgreens / VillageMD is moving into healthcare with a cobbled together group of assets, but if VillageMD can successfully integrate Summit, they’re ahead of schedule on executing their healthcare strategy.
Originally published at: https://www.linkedin.com
