Walgreens lost nearly $6 billion in its second quarter mainly due to a drop in value for the VillageMD clinic business it controls.
Excluding that charge, the drugstore chain reported results Thursday that topped Wall Street expectations.
Walgreens spent more than $5 billion a few years ago to acquire a majority stake in VillageMD and launch a plan to add hundreds of clinics to its stores and grow its ability to provide care.
But the drugstore chain said Thursday that it recorded a $5.8 billion, after-tax impairment charge for VillageMD in its most recent quarter as it adjusted the asset’s value.
VillageMD says on its website that it runs 680 locations. It specializes in clinics that deliver value-based care. That approach, which is growing popular with some insurers, essentially rewards doctors for keeping patients healthy instead of paying them for every service they perform.
I was 'brokefished' by my friend for £400
Across China: Protecting indigenous fish in Yunnan
In pics: Harbin, wetland paradise in NE China
Xi Sends Congratulatory Letter to Zhongguancun Forum
Ricky Stenhouse punching Kyle Busch could lead to suspension
View of Zhalong National Nature Reserve in northeast China
Xi Story: Xi's Commitment to Empowering Chinese Children
World Insights: Experts Say Xi Offers Significant Guidance for China
Amir Khan's £11.5m luxury wedding venue finally hosts its first marriage: Bride arrives on horse
Migrating grey cranes fly to national wetland park in SW China's Yunnan to overwinter