Walgreens' VillageMD has announced plans to exit the Illinois, Indiana and Florida markets this year.
VillageMD operates 680 clinics majority-owned by Walgreens Boots Alliance, including 200 clinics co-located with Walgreens and 170 third-party clinics at its stores. It has six clinics in Illinois, which are slated to close by April 19; 40 clinics in Florida, which are slated to close by March 15; and 12 clinics in Indiana, which closed earlier this year.
The moves are a piece of Walgreens' plan to cut at least $1 billion in costs — in total, it plans to pull VillageMD from five markets and close around 60 clinics in 2024.
In January 2023, it acquired the physician group Summit Health-CityMD for $8.9 billion, adding more than 2,800 providers to its ranks. In March, VillageMD acquired a 30-location physician group, Rocky Hill, Conn.-based Starling Physicians.
"We are supporting our patients during this transition including giving them resources of where they can receive care, access their medical records and answer their questions," a spokesperson told Becker's in February regarding the Florida exit.