Walgreens is beginning a new chapter after being purchased by private equity firm Sycamore Partners for $10 billion. The deal splits the Walgreens Boots Alliance into five privately-owned companies, including the pharmacy chain we all know. But while this sounds like a big business move, the real question many people are asking is: what does this mean for patients like you?
What does private equity ownership mean for Walgreens?
When a company like Walgreens is owned by private equity, it works differently than when it is publicly traded on the stock market.
- Public companies must share their financial information openly, and they often face more pressure from investors and regulators.
- Private equity firms, on the other hand, do not have to disclose as much. They focus on cutting costs and finding ways to make the company profitable as quickly as possible.
That shift can make things tougher for patients, because private equity owners may prioritize financial gains over community access to pharmacies.
Recommended:
Will more Walgreens stores close?
Store closures are one of the biggest concerns right now. Walgreens already planned to shut down about 1,200 stores by 2027. At least 500 closures are expected by the end of 2025, and 295 locations have already closed their doors.
Experts warn the private equity takeover could lead to even more closures. Shane Jerominski, co-founder of the Pharmacy Guild, said the acquisition “raises serious concerns for pharmacy professionals and the patients we serve.” He added, “When private equity firms take over, patients and communities are too often left paying the price through store closures, reduced staffing, and prescription errors — all of which jeopardize safe patient care.”
For patients in small towns or areas with limited pharmacy options, this could mean longer drives or fewer choices for filling prescriptions.
How could this affect patient access to prescriptions?
One possibility is that Walgreens may lean more on its “central fill” facilities. These are large centers that prepare prescriptions and then ship them to local stores. Walgreens currently has 11 of these centers, serving more than 4,500 locations.
Former CEO Tim Wentworth once said he wanted that number to grow to 6,000 stores, which would require more central fill facilities and potentially fewer staffed pharmacies.
For patients, this could mean:
- Fewer local stores in your neighborhood.
- Longer wait times if prescriptions are processed elsewhere.
- Less face-to-face interaction with pharmacists, which many people depend on for advice and guidance.
While central fill may improve efficiency, it also risks making pharmacy care feel less personal.
Recommended:
What about jobs and pharmacy staff?
When private equity firms take over, layoffs are often part of the plan. Walgreens is already working on a $1 billion cost-cutting program, which has included hundreds of job cuts. If more staff reductions happen, patients could experience:
- Longer lines at the pharmacy counter.
- Fewer pharmacists available to answer their questions.
- Higher risk of prescription errors due to having overworked staff.
Cherokee Layson-Wolf, a professor at the University of Maryland School of Pharmacy, highlighted that it is crucial the restructuring does not “come at the expense of patient safety or the dignity of the professionals who keep our pharmacies running.”
What do patients need to watch for next?
This takeover marks a major shift in how Walgreens will operate. For patients, here are a few things to keep an eye on:
- Whether more stores in your area are set to close.
- If your local pharmacy has fewer staff members than before.
- Changes in how quickly prescriptions are filled or how accessible pharmacists are.
- Any price increases on medications or services.
Walgreens’ new CEO, Mike Motz, has promised that as a private company, the focus will return to “our stores and our customer experience.” But patients and experts alike are waiting to see if those words will match reality.
