Walgreens to Shut Down All VillageMD Clinics in Illinois Amid Billion-Dollar Cost-Cutting Plan

Walgreens, the retail pharmacy giant, is set to withdraw its VillageMD clinics from the Illinois market by April. These clinics, offering virtual, home, and office visits, are part of a network majority-owned by Walgreens Boots Alliance. With six clinics in the state, five standalone and one co-located with a Walgreens store, the closures are slated to occur by April 19.

Continued Market Exits

The decision to exit Illinois follows recent market departures in Indiana and Florida earlier in the year. This strategic move aligns with Walgreens' overarching plan based in Northbrook, Illinois, to trim at least $1 billion in costs. Part of this cost-cutting initiative involves withdrawing VillageMD from several markets and shuttering nearly 60 clinics.

Struggles Amid Leadership Changes

Walgreens' focus on reducing administrative costs comes at a challenging time marked by significant turnover in senior leadership. Despite these challenges, VillageMD continues to operate 680 clinics across 26 markets, with many situated alongside Walgreens stores. Walgreens initially acquired a substantial stake in VillageMD for $5.2 billion in 2021, aiming to bolster its healthcare offerings.