VillageMD Sells Another 27 Primary Care Clinics To Harbor Health
VillageMD, still working to unload its primary care businesses, has signed a deal for an undisclosed sum to sell another 27 primary clinics to Harbor Health, a fast-growing startup that operates medical care providers and health insurance plans in Texas.
Neither Harbor Health nor VillageMD would disclose the purchase price of the clinics, which are located in the greater Houston area. Harbor Health bought 32 primary care clinics from VillageMD last year amid a breakup and sale of its primary care businesses.
On Tuesday night, Harbor Health confirmed the company has “signed an agreement to acquire 27 Village Medical clinics in greater Houston, adding a fifth market where the company both delivers care and provides health coverage.”
VillageMD, which was sold a year ago to private equity firm Sycamore Partners in the $10 billion takeover of Walgreens, said it still has 17 clinics in Georgia and two in Kentucky and 12 practices left in the Houston market that are not part of the Harbor acquisition announced Tuesday, VillageMD spokeswoman Molly Lynch said.
“Houston will join Austin, Dallas, San Antonio and El Paso,” Harbor Health said in a statement about its Texas growth. “When the transaction closes, expected end of year, Harbor will operate nearly 70 clinics and more than double its number of physicians and advanced practice providers statewide.”
Walgreens investment in VillageMD was expensive, and cost the drugstore chain billions of dollars. Under former chief executive Roz Brewer, Walgreens invested more than $6 billion in VillageMD to take a controlling stake.
Walgreens eventually scaled back dramatically on the expansion of doctor practices and clinics VillageMD opened. In 2020, Walgreens said it planned to open 500 to 700 “Village Medical at Walgreens” physician-led primary care clinics in more than 30 U.S. markets over five years, with the “intent to build hundreds more thereafter.” By the time, Walgreens was sold to Sycamore, there were around 90 Village Medical at Walgreens clinics.
Former Walgreens chief executive Tim Wentworth, who replaced Brewer in October 2023 as Walgreens CEO, said in a 2024 interview that the company and its partner VillageMD had slowed the number of clinic openings in part because the operators weren’t able to fill their “patient panels,” which are a certain number of individual patients under the care of a specific provider.
The billions of dollars in losses on the VillageMD investment was largely to blame for a net loss of more than $8 billion for Walgreens fiscal 2024. VillageMD’s founder and CEO Tim Barry left the company in 2024 and a few months after Walgreens disclosed plans to reduce its investment in the primary care company.