VillageMD CEO steps down | Healthcare Finance News

Photo: Courtesy of Walgreens

VillageMD CEO Tim Barry has stepped down and Chief Operating Officer Jim Murray has been appointed to serve as interim CEO.

The move is “effective immediately,” according to VillageMD spokesperson Molly Lynch, according to the Chicago Tribune.

No reason was given for Barry’s departure.

WHY THIS MATTERS
 
The move comes as parent company Walgreens Boots Alliance is suffering from “significant profitability challenges” Seeking Alpha said last month.

During its Q4 earnings call in October, Walgreens reported an $8.6 billion net loss in FY24, with plans to close 1,200 stores by 2027.

“The investments in VillageMD aren’t paying off, with the healthcare unit losing $134 million last year,” the Seeking Alpha report said.

Walgreens CEO Tim Wentworth said of VillageMD during the Q4 earnings call that “… We’ve declared it’s not a crucial part of our future.” 

THE LARGER TREND

Walgreens expects to close approximately 1,200 underperforming stores over the next three years, CEO Tim Wenworth said during the Q4 call.

An estimated 500 stores are targeted to close in fiscal 2025, Wentworth said.
 

Email the writer: SMorse@himss.org