Walgreens' VillageMD has announced plans to exit the Illinois, Indiana, Florida and Nevada markets this year.
It has six clinics in Illinois, which are slated to close by April 19; 40 clinics in Florida, which closed in March; 12 clinics in Indiana, which closed earlier this year; and six clinics in Nevada, which will close by the end of the year.
In March, VillageMD also sold 11 clinics in Rhode Island to Boston-based management company Arches Medical Partners.
Walgreens bought a majority stake in the primary care company in 2021 for $5.2 billion, but it has since been devalued and is part of Walgreens' strategy to cut $1 billion in costs this year.
In the second quarter of 2024, Walgreens posted a $5.8 billion loss from VillageMD, as well as a $12.4 billion impairment charge from the reduction of the goodwill value of the primary care chain.
"We remain confident in our goal of achieving $1 billion in cost savings this year," Walgreens CEO Tim Wentworth said in the second quarter results release. "We are continuing to strategically review our portfolio over the next three months in an effort to ensure it drives growth and delivers value."
In total, it plans to pull VillageMD from five markets and close around 60 clinics in 2024.
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.