On Monday, VillageMD announced it will acquire Summit Health-CityMD in a deal valued at approximately $8.9 billion.
VillageMD is a healthcare platform headquartered in Chicago that uses technology to connect patients to medical care. According to the company, it currently serves 1.6 million patients across the U.S. and has greatly expanded over the past few years.
Healthcare platform Summit Health-CityMD focuses on providing specialty and urgent care to patients. The platform is mainly centered in the northeast and has some 400 locations in New Jersey, New York, Connecticut, Pennsylvania and Oregon. The company was founded in 2019 and has over 13,000 employees.
“This is an epic milestone in our journey to transform healthcare in the United States. Summit Health-CityMD has been a leader in delivering coordinated, multi-specialty care for decades. We are honored to work side-by-side with their 13,000-strong workforce who are passionately committed to delivering the best outcomes for millions of patients,” Tim Barry, CEO and board chair of VillageMD, said in a statement. “Both organizations share a deep commitment to keeping our patients and clinicians at the forefront of what we do to best serve them.”
With the acquisition, VillageMD is set to grow its healthcare provider network to 680 locations in 26 markets. Together, both companies will also collaborate to develop a “multi-payer” payment platform that will make healthcare more affordable to patients.
The acquisition is set to close in early 2023.
Last year, VillageMD secured a majority stake investment from Walgreens Boots Alliance, the parent company of Walgreens. The investment is expected to enable VillageMD to open over 1,000 new care locations by 2027, including locations inside Walgreens stores.
“Summit Health-CityMD joining VillageMD is transformational for our U.S. healthcare segment and reinforces our intent to create greater access to quality healthcare across the care continuum,” Roz Brewer, CEO of Walgreens Boots Alliance, said in a statement.
VillageMD is currently hiring for nearly 90 positions across departments.
