VillageMD (63% owned by Walgreens) is buying Summit Health for $8.9B


Health Transformation Institute (HTI)


Joaquim Cardoso MSc*
Chief Researcher and Editor
November 7, 2022

*MSc from London Business School — MIT Sloan Masters Program


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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


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