After investing $5.2 billion in VillageMD in 2021, Walgreens initially had plans to open at least 600 Village Medical primary care clinics within Walgreens retail pharmacy locations in 30 markets by 2025, aiming to amass about 1,000 clinics by 2027. However, last week in what seems like a relative backpedal, Walgreens announced it is now closing all its VillageMD sites in Illinois and Florida, a Drug Store News story revealed. Illinois currently hosts 6 locations, and Florida is one of its top 3 markets, where about 50 clinic locations are positioned to close up shop in the coming weeks. Walgreens characterized this move—as well as the closure of 60 other locations last October—as part of a larger strategic approach.
It’s not just you: Certainly Walgreens is facing the same clinician recruiting challenges that most on-demand care operators face. What’s more, inherent in Walgreen’s model is the co-location of a clinic in a retail pharmacy, which presents limitations on services and reduces the potential to achieve scale.