Tuesday, June 21, 2011
Walgreens to walk away from $5 billion
In the continuously evolving landscape of healthcare payments and reimbursements, Walgreens is in a deadlock with pharmacy benefits manager Express Scripts as the two giants struggle to come to terms that satisfy both parties.
In this case, Walgreens is apparently willing to take a 7 percent haircut on annual revenue because the payments from Express Scripts are not sufficient to generate acceptable profits on that business. Express Scripts handles about 90 million annual prescriptions for Walgreens.
"The Walgreen Company said on Tuesday that it was willing to walk away from more than $5 billion in annual revenue because the pharmacy benefits manager Express Scripts did not pay it enough to fill prescriptions."