Cigna Suffers $300 Million Loss As VillageMD Clinic Investment Reels

Cigna News

Cigna Suffers $300 Million Loss As VillageMD Clinic Investment Reels
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I've written about health care for three decades, starting from my native Iowa where I covered the presidential campaign bus rides of Bill and Hillary Clinton through the Hawkeye state talking health reform and the economy.

The Cigna Group reported a $300 million first quarter loss as the company’s Evernorth health services business grapples with the loss in value of its investment in doctor-staffed clinic operator VillageMD.

Cigna’s Evernorth holds a minority stake in VillageMD, a Chicago-based startup now scaling back on the expansion of doctor practices and clinics the company attached to Walgreens. In late March, Walgreens reported a $6 billion loss in its second quarter thanks to the loss in value of its controlling stake in VillageMD.

Cigna said its adjusted income from operations for first quarter 2024 was $1.9 billion, or $6.47 per share, compared with $1.6 billion, or $5.

“The sale of our Medicare businesses to HCSC remains on track with the expiration of the waiting period under the Hart-Scott Rodino Act having occurred on April 17,” Cigna said. “The transaction is expected to close in the first quarter of 2025.”

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