Walgreens Boots Alliance invests majority in CareCentrix

Will create an integrated platform of post-acute payer and provider services to accelerate value-based care

HARTFORD, Connecticut, October 14, 2021 (GLOBE NEWSWIRE) – Today, CareCentrix, Inc. – the leading independent, home-centric platform that coordinates home care for health plans, patients and providers – announced that the Walgreens Boots Alliance (Nasdaq: WBA) has majority invested in the company.

The investment advances Walgreens’ capabilities in post-acute and home care, supporting its launch today of Walgreens Health, the company’s customer-centric, technology-driven model of care, powered by a nationwide healthcare platform and delivered locally.

Walgreens Health will create a better consumer experience, improve health outcomes, and reduce costs by leveraging Walgreens strengths and assets, including trusted consumer relationships and community presence, nationwide, teams of care and partnerships with payers and providers across the country.

“To support the launch of Walgreens Health, we continue to make strategic investments in pharmacy and healthcare solutions that can improve care coordination and health outcomes, while reducing overall costs,” said Roz Brewer, CEO of Walgreens Boots Alliance. “CareCentrix’s suite of home care solutions will advance our capabilities in this important segment of healthcare delivery, to help meet the needs of people living with complex or chronic illnesses in the home. “

Post-acute care, especially home care, represents one of the most dynamic opportunities in health care. Hospital-to-home patient care accounts for more than $ 75 billion in annual healthcare costs for payers, providers and patients, and that total is growing rapidly in the wake of the COVID-19 pandemic.

“COVID-19 has made it clear that the delivery of care in the home and in the community is the future of not only post-acute care, but healthcare more broadly. Indeed, the home is the last undeveloped frontier in US healthcare and is critical to reversing the spiral of costs and poor health outcomes, ”said John Driscoll, CEO of CareCentrix. “Together, Walgreens and CareCentrix will be able to partner with a wide range of payers to help care for patients from hospital to home in a more personalized, engaged and efficient manner.”

CareCentrix provides the range of services needed, on an integrated basis, to support emerging home care models, including care transitions, home nursing, sustainable medical equipment, home infusions and palliative care home. Success is driven by a relentless focus on operational excellence, a nationwide network of home care providers and powered by HomeBridge, a proprietary analytics and machine learning-based care coordination platform that develops hyper-personalized care plans. By managing the journey home and home care and providing personalized care, CareCentrix helps patients avoid unnecessary care, stay involved in their care and achieve better health outcomes.

“CareCentrix is ​​transforming the post-acute journey from hospital to home to support value-based care, reduce costs and improve outcomes and member experience. We are excited about the opportunity before us to create industry-leading home care solutions, ”said Laizer Kornwasser, President and COO of CareCentrix.

CareCentrix manages the care of 19 million members across approximately 7,400 provider sites, enabling more people to live, heal and age at home. By partnering with health plans and health systems, CareCentrix has reduced the total cost of care for members by 20 percent, including an over 11 percent reduction in emergency department use and a 23 percent reduction in skilled nursing costs.

This investment gives Walgreens Boots Alliance majority ownership of CareCentrix, investing $ 330 million for 55% of the company at a valuation of $ 800 million, net of debt, with the option to acquire the remaining stakes in the to come up. Following the completion of the investment, CareCentrix will continue to operate as an independent company under its current executive management.

The transaction is subject to receipt of the required regulatory clearances and approvals and other customary closing conditions and is expected to close by the end of WBA’s second quarter of fiscal 2022.

Citi acted as financial advisor to CareCentrix, Inc., and Cleary Gottlieb Steen & Hamilton LLP as senior legal advisor.

About CareCentrix
CareCentrix is ​​the leader in home health solutions and is committed to making the home the center of care. Managing the care of 19 million members through a network of approximately 7,400 provider sites, CareCentrix focuses on getting members home to reduce costs. By leveraging insights from proprietary analytics and connecting end-to-end clinical, social and care services, CareCentrix eliminates unnecessary hospital readmissions, fills care gaps, reduces fragmentation of care and, ultimately, helping more people live, heal and age at home. CareCentrix has been named one of FORTUNE Best Workplaces for Aging Services. The company has also received numerous Top Workplaces awards from Best Workplaces in the United States, the Hartford Current, and the Tampa Bay Times, demonstrating its commitment to a positive culture that develops the leaders of tomorrow. For more information, please visit www.carecentrix.com.

About Walgreens Boots Alliance
Walgreens Boots Alliance (Nasdaq: WBA) is a global leader in retail pharmacy, impacting millions of lives every day by dispensing medicine and providing accessible, high-quality care. With more than 170 years of a legacy of health trust and innovation in community pharmacy, the company serves the needs of customers and patients through its convenient points of sale, digital platforms and healthcare products. health and beauty.

WBA operates in more than 9 countries, employs more than 315,000 people and has more than 13,000 stores in the United States, Europe and Latin America.

The purpose of WBA is to inspire happier lives through better health. The company prides itself on its contributions to healthy communities, a healthy planet, an inclusive workplace and a sustainable market. WBA is a participant in the United Nations Global Compact and adheres to its principled approach to responsible business.

More information about the company is available at www.walgreensbootsalliance.com.

Courtney Lamie
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