The "Disruptive" 'me-too-primary-care-employment-strategy' is starting to cripple companies
The only disruption is disruption to the bottom line. More bottom-line disruption to come - Employing PCPs alone does not generate a bottom line. DO THE MATH! Primary care is an essential, noble, honorable profession but a horrible business (thanks to terrible Medicare FFS rates and the end of huge risk pool bonuses from MA)
BECKER’S HOSPITAL REVIEW
Moody's hits Walgreens with downgrade amid healthcare bet
Noah Schwartz - 16 hours ago
Credit ratings agency Moody's cut Walgreens Boots Alliance's credit rating to junk as the pharmacy store chain looks to expand its retail care offerings, Bloomberg reported Dec. 11.
In September, Walgreens CEO Rosalind Brewer stepped down from her role, and in November announced plans to lay off 5% of its corporate staff as it looks to trim costs and reign in debt. New CEO Tim Wentworth will lead the company as it looks to cut $1 billion in total costs.
The company had looked to push into healthcare services and compete with rival CVS through an expansion of its healthcare services. However, as part of the cost-cutting strategy, the company has planned to close 60 of its VillageMD primary care sites.
"We are disappointed by Moody's decision today and the limited timeframe given to demonstrate the results of our deleveraging efforts and planned actions to improve underlying business performance," Walgreens said in a statement.
Hey, Walgreens you fell for the industry disruption nonsense. You can't grow, shrink, risk pool, or drug-rebate your way out of this predicament.
But I could be wrong!
So it goes n8
#healthsytems #walgreens #hospitals #valuebasedcare #physicians
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1moMust be an exciting opportunity!