Walgreens-owned VillageMD sold 11 primary care clinics in Rhode Island to Boston-based Arches Medical Partners.
The deal establishes the medical group management company's presence in the Providence metro area while continuing to provide access to high-quality care with experienced providers to approximately 75,000 patients, according to the company in a press release.
The companies did not disclose the financial details.
Chris Kryder, M.D., along with partners Todd Stockard, Manoj Mathew, M.D., and Carlos Rivera, formed Arches Medical Partners in 2023.
VillageMD continues to shed clinics across the country as part of Walgreens' aggressive $1 billion cost-saving strategy as it looks to boost profitability in its healthcare business. That effort also includes slashing capital expenditures by about $600 million.
"We are now meaningfully looking at the entire portfolio of assets that we have to ensure that everything we have is going to drive to the growth that we aspire to deliver," CEO Tim Wentworth, who took the reins at Walgreens about five months ago, said at the 44th Annual TD Cowen Health Care Conference.
The drugstore retail giant is making moves to improve its financial performance and boost profitability after a massive growth spurt in which it acquired home healthcare business CareCentrix and VillageMD's acquisition of Summit Health-CityMD.
Walgreens disclosed its plans to close 60 underperforming VillageMD clinics and exit five markets last fall. In January, it closed three clinics in New Hampshire, 10 clinics in Jacksonville, Florida, and all 12 of its clinics in Indiana. In February, the company closed all 12 of its VillageMD clinics in Massachusetts., the Advisory Board reported.
Walgreens plans to close the remainder of its VillageMD clinics in Florida in March and all six of its clinics in Illinois in April.
Arches Medical Partners now employs 50 primary care providers and operates eight office locations and three urgent care centers in Rhode Island.
The medical group says it aims to provide a personalized, conciergelike experience for patients through its primary care providers. Arches Medical Partners deploys its owned technology subsidiary, New Era Medical Operations software, to enable independent practice associations to negotiate and manage global risk contracts.
The company actively seeks practices aligned with the shift from fee-for-service to global risk contracting for patients covered by commercial, Medicare and Medicaid plans, the company said.