USA — Walgreens Boots Alliance has announced Tim Wentworth as its new Chief Executive Officer.
Wentworth, a seasoned healthcare executive, previously served as the CEO of Express Scripts, the nation’s largest pharmacy benefits management company, which was later acquired by Cigna in 2018.
Following the acquisition, Wentworth continued to work as the chief of Cigna’s health services until his retirement in 2021.
PBMs like Express Scripts are considered middlemen between drug makers and consumers when it comes to purchasing drugs and providing prescription coverage.
The PBM’s role is in part to leverage its negotiating clout to get the best drug prices on behalf of its diverse base of customers that include large employers as well as Medicare and Medicaid.
Wentworth cited his decision to return to leadership as being driven by the opportunity to lead the iconic brand and company during a period of transformation, stating, “It’s a massive platform… they touch almost 10 million people a day.”
Wentworth is set to assume his new role on October 23, filling the position vacated by Roz Brewer almost two months ago.
Brewer’s departure was described as a mutually agreed decision, and it marked a challenging period for Walgreens as the company sought to expand its role as a healthcare services provider beyond the traditional pharmacy.
Under Brewer’s leadership, Walgreens took significant steps in healthcare, including a major stake in primary care provider VillageMD, the acquisition of specialty pharmacy provider Shields Health, and homecare provider CareCentrix.
However, the integration and scaling of these businesses have put pressure on Walgreens’ earnings.
This transition comes at a time when pharmacy revenue has been affected by declining demand for COVID-19 vaccines and over-the-counter tests.
In June, the company reported third-quarter profits that missed Wall Street estimates for the first time in three years.
To regain its market share, which was lost to rivals Rite Aid and CVS Health due to store closures during the pandemic, Walgreens plans to reduce the pay gap and increase automation at its fulfillment centers by the end of fiscal 2023.
The board at Walgreens was determined to find an executive with a deep healthcare background who could effectively manage the company’s new services.
Wentworth, drawing from his experience at Express Scripts, emphasized the importance of cost structure and efficiency in driving out waste from healthcare.
Stefano Pessina, the Executive Chairman of Walgreens, expressed confidence in Wentworth’s ability to lead the company’s next phase of growth into a customer-centric healthcare company, citing his expertise in payer and pharmacy services, supply chain, IT, and Human Resources.
However, Walgreens’ core pharmacy business is currently facing challenges, with pharmacists in several cities walking off the job to protest understaffing that they claim endangers patients.
Wentworth acknowledged the challenges faced during the COVID-19 pandemic, emphasizing the need for continuous improvement and employee support in their mission to serve patients effectively.
For all the latest healthcare industry news from Africa and the World, subscribe to our NEWSLETTER, and YouTube Channel, follow us on Twitter and LinkedIn, and like us on Facebook.
