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Walgreens is currently considering selling its majority stake in primary care provider VillageMD, in today's bite-sized hospital and health industry news from Georgia, Illinois, and Rhode Island.
- Georgia: According to new CDC data, teen birth rates in the United States have declined significantly since 2000. Between 2000 and 2022, the overall birth rate for individuals ages 15 to 19 in the United States decreased by 71%, even as the total population of teenage girls increased by 7% during the same time. In addition, there was an 80% decrease in the rate of teenagers with one or more births after their first child. However, even with these declines, there are still racial and ethnic disparities. Black, Native American, and Hispanic teenagers continue to have higher birth rates than white, non-Hispanic teenagers. Overall, CDC said the decrease in teen births was due to less sexual activity among teenage girls and increased contraception usage among teenagers who are sexually active. (Goldman, Axios, 7/24)
- Illinois: Walgreens is currently considering selling off its majority stake in primary care provider VillageMD. According to a recent Securities and Exchange Commission filing, the company said it is evaluating "a variety of options" due to "VillageMD's substantial ongoing and expected future cash requirements." Some of the options include Walgreens selling part or all of its stake in VillageMD, restructuring, or exploring other opportunities. "As we prioritize creating value and enhancing our liquidity position, [Walgreens] has entered into an agreement with VillageMD that provides additional runway to continue active engagement with VillageMD’s stakeholders and other third parties to evaluate a variety of options that will position it for sustainable growth," Walgreens said. "Grounded in our shared commitment to patient care, [Walgreens] is fully supportive of VillageMD as we work collaboratively with VillageMD leadership toward a solution with no changes to day-to-day operations for doctors or practice operations." (Hudson, Modern Healthcare, 8/7; Japsen, Forbes, 8/8)
- Rhode Island: CVS Health has reduced its full-year profit outlook for the third straight quarter and announced a new plan to cut $2 billion in expenses over the new few years. According to company executives, the cost-cutting plan will streamline operations, increase use of artificial intelligence and automation, and "rationalize" the company's business portfolio. Meanwhile, the company also announced the departure of Brian Kane, president of CVS' Aetna insurance unit. CVS CEO Karen Lynch will take over management of the Aetna business. CFO Thomas Crowhey will also help oversee Aetna while Katerina Guerraz, the company's CSO, will become Aetna's COO. "We are disappointed by the current performance and outlook for the health-care benefit segment, and I have decided to make leadership changes effective immediately," Lynch said, adding that the company is "committed to returning health-care benefits to its rightful place, and will drive execution and address the challenges facing this business." (Rutherford, Bloomberg/Modern Healthcare, 8/7; Constantino, CNBC, 8/7; Pifer, Healthcare Dive, 8/7; Minemyer, Fierce Healthcare, 8/7)
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