Walgreens and Omnicare Swap Businesses–Giving Long Term Pharmacy Care to Omni and They Get Omni’s Home Infusion Business

Walgreen said it has also agreed to acquire ApothecaryRx pharmacies from Graymark Healthcare systems as Graymark wants to focus on their sleep apnea business. Omnicare has not been quiet this week either with buying Continuing Care RX which serves 40,000 beds of long term care facilities so it looks like Omnicare is trying to grow the business they have been in for years and Walgreens is trying to do the same without each one competing as a one stop shop. Omnicare has not been without challenges and issues too over the last number of years. The Chicago Tribune also has a current article on the kick backs in the Chicago area lawsuit.

Omnicare, Johnson & Johnson, Risperdal, Whistleblowers and Legal Woes Back in the News Again

Basically with long term senior care Walgreen’s is opting out of that business but providing home IV services such as antibiotics will allow for that area to expand. I am guessing too there’s more money perhaps in that side of the business too.

With changing business models, the pharmacists now at Walgreens can earn pay for performance dollars for signing up consumers in the YMCA and others where their Ingenix division has calculated the consumer “might” be at risk of developing diabetes, not diabetic consumers. BD

UnitedHealthCare To Use Data Mining Algorithms On Claim Data To Look For Those At “Risk” of Developing Diabetes – Walgreens and the YMCA Benefit With Pay for Performance Dollars to Promote and Supply The Tools

Walgreen Co., the biggest U.S. drugstore chain, said Friday it will acquire the home infusion business of Omnicare Inc. in exchange for its long-term care pharmacy business.

Financial terms of the deal, which is expected to close before Nov. 15, were not disclosed.

Walgreen, based in Deerfield, Ill., said it decided to leave the long-term care pharmacy business because, on a stand-alone basis, it lacked the necessary scale "to effectively grow to a leading position in its sector without significant additional investment."

Pharmacy chain Walgreen, Omnicare trade businesses - BusinessWeek