INDUSTRY NEWS

Walgreens Boots Alliance Accelerates Full Acquisition of CareCentrix, Makes Executive Appointment

Leading Retailers Begin Selling Hearing Aids OTC

Walgreens Boots Alliance announced the acceleration of its plans to acquire full ownership of CareCentrix, expanding its reach into the growing homecare sector and advancing its healthcare longterm growth strategy. WBA has entered into a definitive agreement to acquire the remaining 45% stake for approximately $392 million, which is based on the exit multiple agreed to at the time of WBA’s initial majority investment announcement in CareCentrix.

WBA also announced that John Driscoll, CEO of CareCentrix, will assume a new role as executive vice president and president, U.S. Healthcare at WBA, including Walgreens Health, later this month. CareCentrix CFO Steve Horowitz will assume the role of CareCentrix CEO.

CareCentrix is a player in the $75 billion post-acute and homecare industry, providing care coordination and outsourced benefit management services. WBA’s full acquisition of CareCentrix follows WBA’s 55% majority investment in the company, which closed on Aug. 31, 2022. The full acquisition is subject to limited customary closing conditions and is expected to close by March 2023.

“We continue to see strong results and potential for growth from our partnership with CareCentrix. Our full acquisition further accelerates our transformation to become a consumer-centric healthcare company, leveraging innovative platforms that extend our capabilities into fast-growing segments of health care,” said Roz Brewer, CEO of WBA. “CareCentrix is key to offering services to our patients at every stage of the care continuum, and to driving long-term, sustainable growth as part of our U.S. Healthcare strategy.”

CareCentrix manages care for more than 19 million members through more than 7,400 provider locations, offering a suite of services on an integrated basis to support homecare models — including home nursing, durable medical equipment, home infusion and in-home palliative care.

In WBA’s fiscal year 2021, CareCentrix delivered pro forma sales of $1.5 billion. The company will continue as a distinct business and brand within Walgreens following the full acquisition.

Several retailers including CVS, Walmart and Sam’s Club are offering hearing aids over the counter now that Congress has passed the OTC Hearing Aid Act and subsequent rules issued by the Food and Drug Administration allowing consumers to purchase the devices directly without a prescription.

Walgreens announced that starting in October

Leading Retailers Begin Selling Hearing Aids OTC - Continued

Lexie Lumen hearing aids will be available OTC at all of its stores nationwide for adults aged 18 years old and older with mild-tomoderate hearing loss. Walmart’s assortment of OTC hearing aids ranges in price from $199 to $999 per pair. Options will include top brands like Lexie powered by Bose and HearX that will offer cuttingedge technology like Bluetooth and self-tuning app capabilities.

Lucid Hearing, a Fort Worth, Texas-based provider of hearing technology and audio solutions, is offering its OTC hearing aids to consumers in more than 450 Sam’s Club locations nationwide.

Lucid Hearing offers free hearing tests for people aged 19 years old and older at more than 500 hearing centers across the nation, most located inside Sam’s Club locations. Lucid’s OTC hearing aids will generally range in price from $199.99 to $1,699.99 and can be purchased through Sam’s Club and other retail outlets and through Amazon and lucidhearing. com. Sam’s Club pricing for Lucid’s OTC hearing aids will range from $199 to $799.

Offering hearing aids online, CVS is carrying Go Hearing + Go Lite and Go Hearing + Go Prime hearing aids. The Go Lite works great for small groups or television viewing, while the Go Prime offers additional features that aid hearing in a variety of environments, the retailer said. Both versions feature a nearly invisible design, adjustable volume and three dome sizes. Each version comes with a portable charging case that charges in two to three hours and carries up to six charges for the hearing aids.

Walmart Launches Healthcare Research Institute

Walmart is making a foray into the clinical research space with the launch of the Walmart Healthcare Research Institute. The mission is to increase community access to healthcare research that may help lead to safer, higher quality and more equitable health care.

WHRI will be focused on innovative interventions and medications that can make a difference in underrepresented communities including older adults, rural residents, women and minority populations.

The company shared that WHRI initially is focused on inclusion in studies on treatments for chronic conditions and innovative treatments that should include members from these communities.

“At Walmart, we want to help ensure all our customers have access to highquality, affordable and convenient healthcare resources, including innovative research,” said Dr. John Wigneswaran, Walmart’s chief medical officer. “We know our customers are interested in participating in healthcare research, but many have not had access until now. We are already making an impact for our customers and for medical research, by raising patient trust and engagement in their care.”

For decades, clinical trials have not been representative of the population at large and often recruited participants who live near research centers, have the time and have the financial ability to participate, Walmart noted. Food and Drug Administration data indicates that in 2020 75% of trial participants were white, 11% were Hispanic, 8% were Black and 6% were Asian. Walmart is focused on studies that can have a health equity impact in the communities it serves and represent all populations. With 90% of Americans living within 10 miles of a Walmart, the retailer can offer solutions to care by meeting customers and patients where they live and work, the company said.

Walmart is working with a wide range of study partners, including clinical research organizations, pharmaceutical companies and academic medical centers, including CTI Clinical Trial & Consulting Services and Laina Enterprises. WHRI is already demonstrating strong results, with a referral rate three times the industry benchmark, the company said.