VillageMD CEO resignation impacts Healthcare Brew
After months of financial struggles, VillageMD, the primary care subsidiary of Walgreens, has made a change at the top with Tim Barry stepping down as CEO. Barry, who founded VillageMD in 2013 and oversaw its acquisition by Walgreens for $5.2 billion in 2021, will be replaced by interim CEO Jim Murray.
Murray, who joined VillageMD as president and COO in April, brings a wealth of experience to the role, having previously served as president and COO of Magellan Health and as EVP and COO of Humana.
The decision to replace Barry comes on the heels of a tough year for VillageMD and its parent company Walgreens. In March, Walgreens took a $5.8 billion impairment charge on VillageMD, leading to a net loss of $5.9 billion for the quarter. Subsequent financial reports showed further challenges, with Walgreens announcing plans to close 25% of its stores and posting a $13.1 billion operating loss for the first nine months of the fiscal year.
By October, Walgreens reported a $3 billion loss for the quarter and a total net loss of $8.6 billion for the year. In light of these struggles, Walgreens also indicated in August that it was exploring the possibility of selling VillageMD.
The transition in leadership at VillageMD is seen as a strategic move to navigate these challenges and steer the company towards a path of financial stability and growth. With Jim Murray at the helm, VillageMD and Walgreens are looking ahead to a new chapter with optimism and determination.
