Walgreens Boots Alliance (Nasdaq: WBA) is making some major changes to its U.S. Healthcare division, which includes all of its provider and at-home care assets.
Most of note is the leadership change at the top. Walgreens acquired the remaining stake in the home care-focused convener CareCentrix for $392 million in 2022, after an initial investment of $330 million. It then made CareCentrix’s former CEO, John Driscoll, the head of its U.S. Healthcare division.
Setting aside a division for provider services, in general, was a reflection of Walgreens’ bold moves into health care delivery and value-based care. But, particularly after COVID-related sales began to wane as the pandemic’s effects lessened, the company started more heavily focusing on growth within that division.
The transition remains a core part of Walgreens plans, but hasn’t been free from speed bumps.
“We are experiencing a slower profit ramp for U.S. Healthcare,” Walgreens CEO Roz Brewer said last June. “Importantly, we remain committed to our strategy through immediate actions to accelerate our path to profitability and to unlock long-term value. I remain confident in the long-term trajectory of our transformation.”
Brewer herself was replaced last year. After stepping down in September, Tim Wentworth – who had far more health care delivery experience – stepped in. He was previously the CEO of Evernorth, the health care services division of Cigna Group (NYSE: CI).
Now, Driscoll is also stepping away from his role as president of U.S. Healthcare. He is, however, remaining with the company as a senior advisor to both the U.S. Healthcare division and Wentworth.
Stepping into that role is Mary Langowski, who previously served as the CEO of the managed services organization Solera Health. Prior to that, from 2014 to 2016, she served as the chief strategy and corporate development officer at CVS Health (NYSE: CVS).
CVS Health, of course, is also in the midst of transitioning from retailer to health care services company. While Walgreens has CareCentrix and a more than $6 billion investment in the home- and community-focused primary care provider VillageMD, CVS Health has Signify Health and Oak Street Health under its belt.
According to her LinkedIn, Langowski helped “ facilitate the organization’s evolution to a health care company, managed its growth strategy and led the foundational work for the Aetna acquisition.”
In addition to the Langowski hire, Walgreens also announced that interim CFO Manmohan Mahajan has been given the permanent tag. Elizabeth Burger, meanwhile, joined the company as its chief human resources officer.
“Today’s announcement solidifies the leadership team that will carry WBA into its future as we look to expand our reach beyond neighborhood pharmacies into the fastest-growing areas of health care,” Wentworth said in a statement. “We have a strong team with a track record of operational excellence and an unwavering commitment to the execution of our goals. The spirit of this leadership team is one of collaboration, transparency and working effectively together. We share a sharp focus on the important goals in front of us, unlocking embedded profitability and reshaping our healthcare strategy to deliver sustainable value for our stakeholders.”
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