Walgreens finalizes CareCentrix acquisition

DEERFIELD, Ill. – Walgreens Boots Alliance has completed its majority share acquisition of CareCentrix. 

WBA announced in October 2021 that it planned to invest $330 million for a 55% stake in CareCentrix, as part of a plan to launch Walgreens Health. 

“We created Walgreens Health to reimagine local health care and wellbeing for all,” said Roz Brewer, CEO, WBA. “This partnership advances our ability to address the needs of people across care settings immediately following hospital discharge. Our collaboration with CareCentrix is one of the many ways we are expanding on our pharmacy and patient expertise to surround individuals with care when and how they need it.” 

Walgreens Health says it will continue to advance capabilities that integrate CareCentrix’s data analytics and home care expertise with WBA’s portfolio of health solutions to identify and close care gaps, as well as coordinate patient care across conditions, settings and provider networks. These capabilities will enable WBA to support medication reconciliation for CareCentrix patients transitioning from hospital to home and provide primary care options to patients when needed. 

CareCentrix will also play a critical role in Walgreens Health’s integrated offerings to manage population level risk for benefits management and post-acute spend and outcomes. CareCentrix manages care for 19 million members through approximately 7,400 provider locations. By partnering with health plans and health systems, CareCentrix says it has reduced total cost of care for members by 20%, and reduced emergency department use by more than 11% and skilled nursing costs by 23%.  

“The most challenging part of the health care journey is the last mile – extending health care delivery into people’s homes,” said John Driscoll, CEO, CareCentrix. “Together with Walgreens Health, CareCentrix is able to combine Walgreens trusted community presence with our powerful technology-enabled care to better address patients’ unique health needs in their homes.” 

WBA’s investment gives it majority ownership of CareCentrix, investing approximately $330 million for 55% of the company at an $800 million valuation, net of debt, with the option to acquire the remaining equity interests in the future. In WBA’s fiscal year 2021, CareCentrix delivered pro forma sales of $1.5 billion. 

Following the completion of the investment, CareCentrix will continue to operate as an independent company under its current executive leadership.