Tim Barry has resigned as the CEO of VillageMD, the clinic operator mostly owned by Walgreens Boots Alliance, which has faced heavy financial losses.
VillageMD confirmed on Wednesday that Barry, who founded the company in 2013, stepped down as CEO and Board Chair. Despite the company’s efforts to expand clinics inside Walgreens stores, VillageMD struggled to attract patients and has scaled back plans to grow further.
The company has appointed Jim Murray, the Chief Operations Officer, as the Interim CEO. Murray, who joined VillageMD in April, will now manage the daily operations to ensure everything runs smoothly. VillageMD also emphasized its commitment to providing accessible, quality healthcare across the U.S.
Earlier this year, Walgreens announced plans to reduce its investment in VillageMD due to the losses and focus on more profitable areas. Walgreens also expressed its support for Murray as he takes on the new leadership role.
Murray has many years of experience in healthcare, having worked with companies like Centene, Magellan Health, and Humana. Since joining VillageMD, he has helped the company make progress and set itself up for growth.
Walgreens remains a partner with VillageMD. Earlier this year, CEO Tim Wentworth said the company would continue working with VillageMD but was also looking for ways to unlock more value and ensure future growth. Walgreens owns 53% of VillageMD, which also includes CityMD and Summit Health.
Walgreens had invested over $6 billion in VillageMD, hoping to open many clinics. However, the investment has not paid off as expected, and the company reported a large loss of $13 billion for the first nine months of the fiscal year, partly due to VillageMD’s financial struggles.
