VillageMD Taps New COO Amid Clinic Closures

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Name: Jim Murray

Previous title: Chief operating officer and chief transformation officer, Centene

New title: President and COO, VillageMD

Murray, a former health insurance executive, officially began the COO role at the primary care chain VillageMD on April 1, according to a Wednesday release.

He’ll lead operations across the provider’s three business units, Village Medical, Summit Health and CityMD. The Walgreens-backed primary care chain purchased Summit and CityMD for nearly $9 billion early last year.  

Before joining VillageMD, Murray served as COO and chief transformation officer at Centene, one of the country’s largest providers of Medicaid managed care plans. 

He previously was president and COO of behavioral health platform Magellan Health, which was acquired by Centene in 2022, and held multiple executive roles at insurer Humana.

“Jim is a consummate operations leader, one whose expertise will help all of our businesses reach their potential and continue to establish VillageMD as a critical part of the care delivery system in our markets,” said Tim Barry, CEO and chair of VillageMD, in a statement.

The appointment comes after Walgreens has shut down dozens of its value-based primary care clinics this year in a bid to improve financial performance in its U.S. Healthcare unit. 

The retail and pharmacy giant reported a $6 billion net loss in the second quarter, largely due to the declining value of VillageMD. On an earnings call, executives said it planned to close 160 clinics in total, far beyond earlier plans announced in the fall last year to close 60 clinics in underperforming markets. 

Walgreens has already shut down 140 locations, including clinics in Florida, Indiana, Illinois, Massachusetts, Rhode Island and Nevada.

The U.S. Healthcare division, which includes VillageMD, at-home care provider CareCentrix and specialty pharmacy Shields Health Solutions, increased revenue 33% during the second quarter. The segment posted an adjusted operating loss of $34 million.