VillageMD closes $8.9B Summit Health-CityMD acquisition

Dawn Furnas//January 6, 2023//

VillageMD closes $8.9B Summit Health-CityMD acquisition

Dawn Furnas//January 6, 2023//

Listen to this article

Summit Health-CityMD officially has a new owner.

Chicago-based VillageMD said Jan. 5 it completed its previously announced $8.9 billion acquisition of the Berkeley Heights-based health care provider on Jan. 3.

The move creates one of the largest independent provider groups in the U.S., according to VillageMD, with more than 680 provider locations in 26 markets.

“Our new organization will continue to be patient centered, physician led and committed to transforming the way health care is delivered in the United States,” VillageMD CEO and Chair Tim Barry said in a statement.

“As we combine forces, our workforce of 20,000 people will have even more expertise, tools and resources to provide the best care for our patients – whenever and wherever care is needed,” Barry added.

VillageMD is conducting a national search for a president of the company, according to the announcement. The hire would report directly to Barry.

Dr. Jeff Le Benger, chair and former CEO of Summit, will serve as interim president. A VillageMD spokesperson told NJBIZ it is “unclear” at this time whether Jeff Alter, current CEO of Summit Health-CityMD, will remain in his position or transition to a new role.

The deal – which included investments from Walgreens Boots Alliance Inc. and Evernorth, the health services business of Cigna Corp. – was originally announced Nov. 7.

Jeffrey Alter, CEO, Summit Health.

“Summit Health-CityMD and VillageMD are patient-centered and physician-led companies that have complementary offerings and a shared core belief that taking excellent care of the patient will remain the cornerstone of our success,” Alter said at that time. “Adding our expertise and geographic coverage to VillageMD’s proven value-based primary care approach will enhance the lives of so many patients and physicians across the country, helping to lower health care costs and improve the health of our communities.”

Summit Health and CityMD, which unveiled a rebrand in late September 2022, merged in August 2019 to form the combined organization. Together, they have over 2,800 providers across more than 370 locations in New York, New Jersey, Connecticut, Pennsylvania and central Oregon. 

The VillageMD spokesperson also told NJBIZ that Summit Health-CityMD employees will remain in their positions and that the company will maintain its name “at this time, though marketing will look at branding in the near term to best represent one organization.”