Walgreens and VillageMD opening nine full-service primary care practices in San Antonio

Photo: Tom Werner/Getty Images

Walgreens Boots Alliance and VillageMD have signaled plans to expand into San Antonio, Texas with the opening of nine Village Medical at Walgreens primary care practices over the next year.

These openings represent expansion into the fifth major market in Texas, following Houston, El Paso, Austin and Dallas. Through the Walgreens and VillageMD coordinated care model, patients receive full-service primary care alongside pharmacy services the companies called "convenient and cost-effective." 

The model is especially geared toward those with chronic conditions, and is meant to improve outcomes and lower the cost of care.

WHAT'S THE IMPACT?

The move represents an expansion into a new market for the two organizations, allowing Walgreens and VillageMD to tap into a region they say lacks access to primary care.

To illustrate this market opportunity, the companies highlighted research from the Texas Department of State Health Services showing that chronic health conditions account for 75% of Texas healthcare expenditures. Yet according to America's Health Rankings, Texas ranks 47th in the nation in the number of primary care providers accessible to residents.

Walgreens and VillageMD see an opportunity in those numbers and are pitching the coordinated care model as being more streamlined, leveraging the collective expertise of pharmacy teams and physicians.

Village Medical primary care physicians and Walgreens pharmacists work together, the companies said, to provide care for chronic health conditions, preventive services and treatment of everyday illnesses and injuries. Within the same visit, patients have access to care from physicians, while also ensuring their prescriptions, medication refills and affordable substitution options are readily available.

Village Medical at Walgreens locations in San Antonio are expected to create more than 850 full-time jobs in the area. Village Medical will employ 380 STEM (Science, Technology, Engineering, and Mathematics) professionals.

THE LARGER TREND

Walgreens Boots Alliance recently announced an increased investment in VillageMD to advance its strategic position in the delivery of value-based primary care. This investment will accelerate the opening of at least 600 Village Medical at Walgreens primary care practices in more than 30 U.S. markets by 2025 and 1,000 by 2027, with more than half of those practices in medically underserved communities.

A year ago, Walgreens said it would open more than 500 Village MD primary care offices within stores. Walgreens has more than 21,000 stores.

It is competing against primary care providers and other large retail pharmacy chains, such as CVS, which has HealthHubs.

VillageMD partners with physicians to provide tools, technology, operations, staffing support and industry relationships. The Village Medical brand provides primary care for patients at traditional freestanding clinics, at Village Medical at Walgreens clinics, at home and via virtual visits. 

VillageMD said it's also among the largest participating sponsors of the Centers for Medicare and Medicaid Services' new Direct Contracting program.
 

Twitter: @JELagasse
Email the writer: jeff.lagasse@himssmedia.com