Cigna Writes Down VillageMD Investment amid Shrinking Value

Cigna has written off more than half of its multibillion-dollar investment in VillageMD amid the declining value of the primary care chain. Cigna invested $2.5 billion into VillageMD in late 2022, with the goal of accelerating value-based care arrangements for employer clients by tying VillageMD’s physician network with Cigna’s health services business, Evernorth — hopefully reaping profits from shared savings as a result. But on Thursday, Cigna wrote off $1.8 billion of that investment, citing VillageMD’s lackluster growth after its majority owner Walgreens elected to close underperforming clinics.

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Source: https://www.healthcaredive.com/news/cigna-villagemd-writedown-walgreens-q1-2024/714966

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