Carecenterix, a home care service provider previously owned by the Walgreens Boots Alliance (NASDAQ: WBA), is now an independent, private company.
The transition was triggered by the $22 billion acquisition of Walgreens by private equity firm Sycamore Partners, which was finalised on Thursday. Carecentrix's separation into independent companies will restore its original ownership structure before Walgreens acquires the business in 2022. This will continue to be led by Steve Horowitz as CEO along with the existing management team.
“This is an exciting moment for Carecentrix and our team,” Horowitz said in a statement. “Together with Sycamore, we continue to work to promote our mission to provide high quality, whole-person care, improve outcomes, and create a world where everyone can heal at home, heal age and thrive.”
Headquartered in Hartford, Connecticut, Carecentrix serves more than 16 million members through a network of over 6,000 provider locations nationwide. The company specializes in managing complex home care services for health planning, and continues to manage costs while reducing hospital readmissions and emergency department visits.
Horowitz previously told Home Healthcare News that retailers are increasingly distant from home-based care services, but Walgreens has the “right attitude” because he puts patients first.
“I think it's similar to what a lot of tech companies have experienced. I think all of a sudden they'll come in and fix their healthcare,” he said. “The only thing that doesn't work in the end is that health care is complicated.”
After acquiring Carecentrix, Walgreens continued to expand its home care capabilities through a partnership between providers Enablement Company Pearl Health and Carecentrix.
Stefan Kauzny, managing director of Sycamore, said the private equity company looks forward to partnering with Carecenterix management team, previously owned by Walgreens, as well as other companies that are now independent.
“As a standalone company under private ownership, they enhance the customer experience and deepen trustworthy relationships with millions of customers around the world based on their proud heritage,” Cowsney said.
Additionally, Sycamore has appointed Mike Motz, former CEO of Office Supply Retailer Staples, as CEO of Walgreens after acquiring the company. He will replace Tim Wentworth, who continues to serve as his current manager.
The non-profit Watchdog Group Private Equity Stakeholders Project (PESP) warned that the move would raise concerns for patients, workers and communities in the US.
“This is a debt-driven acquisition that puts patients, workers and the entire community at risk, not just corporate remodeling,” PESP executive director Jim Baker said in a statement.
After months of negotiations on the acquisition with Sycamore, Walgreens announced plans to close 1,200 stores late last year. Industry experts such as Baker predict that store closures could accelerate under Sycamore's leadership.
