Walgreens plans to close up to 25% of its underperforming retail stores as the current pharmacy model becomes unsustainable, according to CEO Tim Wentworth. With the shift in customer demographics and preferences, only 75% of U.S. stores contribute to segment Adjusted Operating Income (AOI), necessitating store closures over the next three years. Walgreens also faces reimbursement pressure from pharmacy-benefit managers and lower script market growth compared to pre-pandemic levels. To cut costs, Walgreens will reduce its stake in VillageMD and close unprofitable clinics, aiming to better align with long-term profitability strategies.

Walgreens to shutter up to 25% of retail stores nationwide Healthcare Finance News

Lurie Children's Hospital of Chicago faced a significant cybersecurity breach in January, leading to unauthorized access to the personal information of nearly 800,000 individuals. The hospital's electronic systems were temporarily taken offline to mitigate the threat, causing disruptions in patient services. By late May, all patient-facing systems were reactivated, though MyChart functions are still being updated. The hospital did not pay a ransom and has offered affected individuals complimentary access to information protection services. An ongoing investigation, in collaboration with law enforcement, aims to enhance future cybersecurity measures.

Lurie Children's Hospital says nearly 800,000's data compromised in cyberattack Fierce Healthcare

Optum has decided not to proceed with its acquisition of Steward Health Care's physician group, as confirmed by the Massachusetts Health Policy Commission. Despite this, the parties have not yet withdrawn their material change notice filings with the Commission. The acquisition was initially part of Steward's bankruptcy restructuring efforts amid significant financial difficulties. The Department of Justice has objected to the proposed sale due to insufficient time for review. Steward Health Care continues to pursue other potential buyers for its physician group amidst ongoing financial instability.

Optum drops out of Steward deal Healthcare Finance News

Children's and rural hospitals face unique challenges in reimbursement, primarily due to reliance on Medicaid and shifting payer mixes. Akron Children's Hospital CFO, Gordon Edwards, noted that more than half of their budget comes from Medicaid, and emphasized adapting to patient preferences for digital scheduling. Julie Lautt, CFO of Avera Health, highlighted the importance of keeping care local through telemedicine, which they have utilized since 1993. Both hospitals are combating workforce shortages, exacerbated by an aging population, by offering better benefits and innovative recruitment strategies. Competition from healthcare disruptors and the inefficiencies in denial processes were also discussed, with both leaders stressing the need for improved collaboration between providers and payers.

The challenges facing children's and rural hospitals Healthcare Finance