Walgreens books hefty charge as the drugstore chain adjusts the value of struggling clinics

Walgreens books hefty charge as the drugstore chain adjusts the value of struggling clinics


Walgreens lost nearly $6 billion in its second quarter mainly due to a drop in value for the VillageMD clinic business it controls.

Excluding that charge, the drugstore chain reported results Thursday that topped Wall Street expectations.

Walgreens spent more than $5 billion a few years ago to acquire a majority stake in VillageMD and launch a plan to add hundreds of clinics to its stores and grow its ability to provide care.

Trending: Trial of Arizona Rancher Accused of Killing Illegal Immigrant Takes Odd Turn When Judge Walks Out of Courtroom

But the drugstore chain said Thursday that it recorded a $5.8 billion, after-tax impairment charge for VillageMD in its most recent quarter as it adjusted the asset’s value.

VillageMD says on its website that it runs 680 locations. It specializes in clinics that deliver value-based care. That approach, which is growing popular

Continue reading


 

Join the conversation!

Please share your thoughts about this article below. We value your opinions, and would love to see you add to the discussion!