Walgreens Boots Alliance has appointed Tim Wentworth, a seasoned healthcare executive and former CEO of pharmacy benefits management giant Express Scripts, as its new chief executive. Wentworth, who retired from Cigna at the end of 2021 after serving as chief of Cigna’s health services, will assume the role on October 23. He takes over from Roz Brewer, who stepped down two months prior.
Walgreens is in the midst of a challenging transition as it seeks to expand its role beyond the traditional pharmacy counter and into a broader provider of health services. Under Brewer’s leadership, the company took significant steps, including a major stake in primary care provider VillageMD, acquisitions of specialty pharmacy provider Shields Health, and homecare provider CareCentrix.
However, integrating and scaling these businesses has put pressure on Walgreens’ earnings. The company is also facing challenges in its core pharmacy business, with pharmacists in several cities walking off the job to protest understaffing that they argue endangers patients. Walgreens’ transition has occurred against the backdrop of declining demand for COVID vaccines and over-the-counter tests, impacting pharmacy revenue.
The company’s third-quarter profits in June missed Wall Street estimates for the first time in three years. Walgreens’ board sought a CEO with deep healthcare experience to navigate these challenges. Wentworth, with his background at Express Scripts, is expected to bring insights into cost efficiency and waste reduction in healthcare.
Express Scripts was known for its focus on driving out waste from healthcare. Walgreens’ executive chairman Stefano Pessina expressed confidence in Wentworth’s ability to lead the company’s next phase of growth into a customer-centric healthcare entity. Wentworth emphasized the importance of addressing the company’s cost structure, acknowledging that it is every bit as important as the expansion into new services. Walgreens is set to report its fourth-quarter earnings on Thursday.
