Water Street is to acquire a majority interest in Take Care Employer Solutions, a subsidiary of Walgreen Co that manages more than 360 US worksite health centres.
Water Street also has signed an agreement to simultaneously invest in CHS Health Services, a premier provider of more than 130 worksite health centres.
Water Street will merge Take Care Employer Solutions and CHS to form a new company dedicated to providing worksite health centres that improve the cost and quality of employee health care. The new company will have more than 85 years of combined experience in employer health solutions and will serve more than 200 corporations through nearly 500 worksite health and wellness centres located across the country.
“Walgreens, CHS and Water Street share a goal of maximising employers’ return on their health care investment,” says Dr Jeffrey Kang, Walgreens senior vice president of health and wellness services and solutions. “This strategic decision to bring together our organisations’ expertise, capabilities and resources to create a leading worksite health and wellness company provides us an opportunity to play an even greater role in improving the cost and quality of workforce health care. Through our continued involvement in the business and as a preferred strategic partner with Water Street, Walgreens expects to accelerate tighter connections with employers – an important stakeholder in the health care delivery system.”
“CHS and Take Care Employer Solutions are both deeply committed to finding new ways to drive positive health care outcomes for our clients and their employees. This merger will provide us with a significant opportunity to transform onsite health care. Together, we will have the experience and resources to create innovative strategies that will improve patient engagement and positively impact health outcomes,” says Stuart Clark, CEO, CHS.
Water Street will own a majority interest in the new company, and Walgreens will own a significant minority interest and have representatives on the new company’s board of directors. The new company will be led by Clark. Trent Riley, divisional vice president, Take Care Employer Solutions Group, will serve as COO. The name of the new company will be determined during the integration process.
“We are pleased that Walgreens and CHS have selected Water Street to collaboratively and strategically grow their businesses. We will leverage our team’s experience and network of relationships in health care services to expand the new company’s capabilities and create greater long-term value for the business and clients,” says Steve Cosler, an operating partner with Water Street who has more than 20 years of experience in outsourced health care.
Walgreens will continue to manage its existing worksite pharmacies in collaboration with the new company.
Healthcare Clinic at select Walgreens, with more than 400 in-store clinic locations that formerly operated under the Take Care Clinic name, is not part of this transaction. Walgreens will continue to manage these clinics.
Comprehensive Health Services, Inc. (CHSi), an entity related to CHS that specialises in government contracting health services and logistics, is not part of this transaction. It will remain an independent organisation with no changes to its ownership structure or leadership team.
