Walgreens To Buy The Rest Of CareCentrix Home Care For $392 Million
Walgreens Boots Alliance is buying the rest of the post acute and home care company CareCentrix for $392 million.
The nation’s largest drugstore chain Tuesday said it has “entered into a definitive agreement to acquire the remaining 45% stake for approximately $392 million.” CareCentrix coordinates care to the home for health plans, patients and medical care providers and is a key part of the Walgreens Health strategy unveiled by chief executive Roz Brewer last year.
“We continue to see strong results and potential for growth from our partnership with CareCentrix,” Brewer said Tuesday. “Our full acquisition further accelerates our transformation to become a consumer-centric healthcare company, leveraging innovative platforms that extend our capabilities into fast-growing segments of healthcare. CareCentrix is key to offering services to our patients at every stage of the care continuum, and to driving long-term, sustainable growth as part of our U.S. Healthcare strategy.”
The acquisition is the latest sign that retail healthcare providers like CVS, Walgreens, Walmart and Amazon are looking to further serve the outpatient needs of U.S. consumers. The acceleration of the full acquisition of CareCentrix comes a month after Walgreens rival CVS Health announced it would acquire home care company Signify Health for $8 billion, beating out Amazon and others for the company.
In CareCentrix, Walgreens is acquiring the rest of a company that manages care for more than 19 million members at more than 7,400 provider locations, the companis said. CareCentrix offers “a suite of services on an integrated basis to support home care models – including home nursing, durable medical equipment, home infusion and in-home palliative care,” Walgreens said. In Walgreens fiscal year 2021, CareCentrix “delivered pro forma sales of $1.5 billion.”
CareCentrix will continue as a distinct business and brand within Walgreens following the full acquisition and CareCentrix chief executive officer John Driscoll will take on the new role as executive vice president and president, U.S. Healthcare at Walgreens Boots Alliance.