Rite Aid opened 23 clinics in 2015, took in $30 billion as Walgreens takeover nears
The results are just the latest example of how retail healthcare is growing as a real competitor for traditional healthcare providers.
Rite Aid earned nearly $166 million and opened 23 health clinics in 2015, the company announced in what may be its last full-year earnings report before its scheduled takeover by Walgreens.
While the earnings slightly missed analyst estimates, the results are just the latest example of how retail healthcare is growing as a real competitor for traditional healthcare providers when it comes to services.
Rite Aid posted $30.7 billion revenue in 2015, the company said, compared to $26.5 billion in the prior year. Its retail division accounted for $26.9 billion in those sales.
[Also: Walgreens to buy Rite Aid in $17.2 billion deal]
In addition to its clinic openings, Rite Aid said it relocated 20 stores, acquired 6 stores, remodeled 412 stores, expanded 2 stores, opened 5 stores and closed 20 stores in the year.
Walgreens in October 2015 agreed to acquire Rite Aid for $9 a share in a deal worth more than $17 billion. That acquisition still faces regulatory approval, and Walgreens is expected to be required to sell off many of its existing pharmacy locations to meet conditions set by regulators.
Rite Aid is the third largest pharmacy chain in the United States behind CVS.
[Also: Use of clinics, other alternative care sites, swells, survey finds]
Walgreens, the nation's largest pharmacy chain, has also invested heavily in its retail clinic business and has announced several partnerships with health systems.
Growing reluctance among patients to suffer long wait times and scheduling logjams traditionally associated with primary care is driving consumer interest in pharmacy-based clinics.
As a result of the pending merger, Rite Aid did not give any profit or income guidance for 2017.
"In the fourth quarter, we generated nearly $40 million of growth in Adjusted EBITDA, including an increase in our Retail Pharmacy Segment and strong results from our new Pharmacy Services Segment," said Rite Aid Chairman and CEO John Standley said in the announcement. "This was one of many key highlights of fiscal 2016, which was a transformational year that saw us acquire EnvisionRx, launch the ground-breaking wellness+ with Plenti program, complete our 2,000th Wellness store and exceed $30 billion in revenues for the first time."
Twitter: @HenryPowderly
