Partnership with CareCentrix Expands Home Care Capabilities to Create a Connected Ecosystem for Patients
DEERFIELD, Ill.- August 31, 2022 – Walgreens Boots Alliance, Inc. (Nasdaq: WBA) announced today that it has completed the majority share acquisition of CareCentrix, Inc., the leading independent home-centric platform that coordinates care for home for health plans, patients and providers. Majority investment in CareCentrix accelerates Walgreens Health’s capabilities to deliver quality health care in a spectrum of settings including primary care, specialty pharmaceutical care, post-acute care and home care.
By uniting Walgreens’ trusted health services and community presence with CareCentrix’s technology-enabled home care solutions, the partnership better addresses the needs of people with chronic or complex conditions as they leave the hospital. CareCentrix’s advanced data analytics capabilities enable highly personalized care plans to help people transition to the right place of care, prioritizing care at home when appropriate. This approach supports both quality and value of care by reducing hospital readmissions and improving patient satisfaction and outcomes.
“We created Walgreens Health to reinvent local health care and wellness for all. This partnership enhances our ability to address the needs of people in all care settings immediately after hospital discharge,” said Roz Brewer, Executive Director of the WBA. “Our collaboration with CareCentrix is one of the many ways we are expanding our pharmacy and patient experience to surround people with care when and how they need it.”
Health care services provided after discharge, including care provided in the home, are one of the fastest growing segments of health care today. Hospital-to-home patient care accounts for more than $75 billion in annual health care costs for payers, providers, and patients.
“The most challenging part of the health care process is the last mile: extending health care into people’s homes,” said John Driscoll, CEO of CareCentrix. “Together with Walgreens Health, CareCentrix is able to combine Walgreens’ trusted community presence with our powerful technology-enabled care to better address the unique health needs of patients in their homes.”
In addition to home care, CareCentrix connects patients with the right care providers and sites after discharge, using a predictive analytics platform, HomeFirst analysis. This level of personalization also includes linking patients with care transition teams that support patient engagement for 90 days post-discharge to improve quality metrics..
Walgreens Health will continue to advance capabilities that integrate CareCentrix data analytics and home care expertise with WBA’s portfolio of health solutions to identify and close gaps in care, as well as coordinate patient care across conditions , environments and provider networks. These capabilities will allow Walgreens to support medication reconciliation for CareCentrix patients transitioning from hospital to home and provide primary care options to patients when needed, including Village Medical physicians and advanced practice providers. CareCentrix will also play a critical role in Walgreens Health’s integrated offerings to manage risk at the population level for benefit administration and post-crisis spending and outcomes.
CareCentrix manages care for 19 million members through approximately 7,400 provider locations and enables more people to live, heal and age at home. By partnering with health plans and systems, CareCentrix has reduced the total cost of care for members by 20%, including a more than 11% reduction in emergency department use and a 23% reduction in skilled nursing costs.
This investment gives WBA majority ownership of CareCentrix, investing approximately $330 million for 55 percent of the company at a valuation of $800 million, net of debt, with the option to acquire the remaining equity interests in the future. In WBA fiscal year 2021, CareCentrix delivered pro forma sales of $1.5 billion. Upon completion of the investment, CareCentrix will continue to operate as an independent company under its current executive leadership.
Sidley Austin LLP acted as lead legal counsel to WBA, along with Weil, Gotshal & Manges LLP. Citi acted as financial advisor to CareCentrix, Inc. and Cleary Gottlieb Steen & Hamilton LLP acted as lead legal advisor.
Notes to editors:
About Walgreens Boots Alliance
Walgreens Boots Alliance (Nasdaq: WBA) is an integrated healthcare, pharmacy and retail leader serving millions of customers and patients every day, with a 170-year legacy of serving communities.
A trusted global innovator in retail pharmacy with approximately 13,000 locations in the US, Europe and Latin America, WBA plays a critical role in the healthcare ecosystem. The company is reinventing local health care and wellness for all as part of its purpose: to create happier lives through better health. Through dispensing medicines, improving access to a wide range of health services, providing high-quality health and beauty products, and anytime, anywhere convenience through its digital platforms, WBA is giving shape the future of healthcare.
WBA has more than 315,000 team members and a presence in nine countries through its portfolio of consumer brands: Walgreens, Boots, Duane Reade, the No7 Beauty Company, Benavides in Mexico and Ahumada in Chile. Additionally, WBA has a portfolio of healthcare-focused investments located in multiple countries, including China and the US.
The company prides itself on its contributions to healthy communities, a healthy planet, an inclusive workplace, and a sustainable marketplace. WBA has been recognized for its commitment to sustainable operation: it is a constituent of the Dow Jones Sustainability Indices (DJSI) and was named among the 100 Best Corporate Citizens 2021.
More company information is available at www.walgreensbootsalliance.com.
CareCentrix offers value-based home solutions to payers and health systems to help more of their members access the home care they need, when they need it. Through a single platform, CareCentrix coordinates multiple and complex home care needs for more than 19 million members through a national network of approximately 7,400 provider locations, resulting in a simplified patient and physician experience. For more than 25 years, CareCentrix’s focus on the whole person has improved continuity of care, reduced unnecessary readmissions and unnecessary emergency department utilization, and delivered positive financial results for health plans. with owner HomeFirst analyzes To stratify risk and optimize care delivery, CareCentrix takes on the complexities of care coordination and home care management to provide our clients with essential information about home care. CareCentrix has been named one of Fierce Healthcare’s “Fierce 15” Companies of 2022 and FORTUNE’s Best Workplaces for Senior Services. For more information please visit www.carecentrix.com.
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Source: Walgreens Boots Alliance