Last week, WBA doubled down on their commitment to Primary Care. After having invested $1B in VillageMD, they announced an additional $5.2B. to support VillageMD's care model, which, of course includes the Medicare Global and Professional Direct Contracting Model. The press release indicates VillageMD plans to enter 30+ markets by 2027.
So how big are they now?
They are approved to operate under the Direct Contracting Model in Arizona, Georgia, Texas, Kentucky, Michigan, New Hampshire, Indiana and Illinois. According to CMS data, they currently have assigned NPI numbers in these jurisdictions:
Texas if by far their largest market.
Only three of their NPIs are associated with physicians who have assigned their benefits to VillageMD and from the perspective of the Direct Contracting program, they are larger than most. They have about 105 family practitioners, 95 Nurse Practitioners, 55 Physicians Assistants, and 50 Internal Medicine doctors. Not a bad start if Walgreens wants to get into the full practice of medicine.
As a cautionary note for retail analysts that cover the name, be mindful that some of the forecasts for the direct contracting entities have been a tad ambitious, The geographies WBA will be allowed to enter to serve seniors via VillageMD are those described above and no more for the foreseeable future, barring an acquisition or other external event. Outside of Medicare, the combination offers a lot of possibilities. Among underserved communities, which WBA has pledged to serve, the local pharmacists is by far the most trusted provider. It can be a powerful combination.
Let me know what you think.
Emily Evans
Managing Director – Health Policy
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