Walgreens Takes a $5.8 Billion Hit on VillageMD Bet as CEO Focuses on Profit

Walgreens Boots Alliance recorded a $5.8 billion impairment charge on its investment in clinic operator VillageMD on Thursday, hit by a cost-cutting drive to shut down unprofitable sites.

VillageMD, a core part of Walgreens’ push to expand beyond its legacy pharmacy operations, plans to shut over 160 clinics to focus on sites present in densely populated areas, to increase the number of patients treated by a single doctor.

That, along with slower-than-expected growth of patients per doctor, led to a lower long-term forecast for the business, Walgreens executives said.

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