Walgreens Invests $5.2 Billion in VillageMD

The Doctor is in...at Walgreens

Walgreens Boots Alliance (WBA) is pushing further into the healthcare market, announcing it is investing $5.2 billion in VillageMD, a primary care provider. Through the investment, Walgreens increased its stake in VillageMD from 30% to 63%.

Walgreens is working to move beyond filling prescriptions and selling drugstore items. It wants to become a destination for all consumers' healthcare needs. By 2025, Walgreens and VillageMD aim to have around 600 primary care clinics in Walgreens stores. By 2027, the companies want to have 1,000 clinics.

Increasing Access to Healthcare

Walgreens is working to simplify healthcare for patients by having doctors and pharmacists work alongside each other. Three-quarters of Americans live within five miles of one of Walgreens’ 9,000 US stores. The VillageMD clinics will be around 3,000 square feet, taking up about one-quarter of the space in a typical Walgreens store.

Walgreens and VillageMD are trying to reach people in markets which are underserved. Over half of the new clinics will be in urban and rural areas where access to doctors is limited. The clinics will accept insurance but will also offer options for people who don’t have insurance.

Walgreens Joins CVS and Walmart

Walgreens is joining CVS Health (CVS) and Walmart (WMT) as it pushes further into the primary care industry. Many CVS stores have in-store MinuteClinics which provide urgent care and administer vaccines. CVS is also turning some of its stores into so-called HealthHubs, which offer medical care, testing, and other services in one place. Meanwhile, Walmart is increasing the number of primary care clinics in its stores. The retailer is currently focused on three markets at the moment.

With the shortages of doctors getting worse in some parts of the country, Walgreens wants to fill the void. So do rivals CVS and Walmart. It will be interesting to see how the drugstores’ incentives impact the US healthcare industry.

Credit Card Utilization: What You Need To Know

The world of credit scores can make your head spin, but what we know for sure is that credit card utilization plays a big role in how companies compute your credit score. In fact, about 30% of your credit score is determined by your credit card utilization rate. That means a high credit card utilization rate can adversely affect your credit score.

The general guideline is that you should not exceed a 30% credit card utilization rate. Track your credit score for free in the SoFi app, where the factors affecting your score are broken out to make them easier to understand.

Home Heating Costs Could Rise by 30% or More

Consumers Brace for Higher Heating Costs This Winter

Americans across the country should prepare for higher energy costs this winter, with the White House warning that bills will be much higher compared to last year. With energy prices skyrocketing across the globe and supply dwindling, the Energy Information Administration, a government agency, warned that some parts of the country will see an average increase of 30% for their energy bills.

The report also calculated how a warmer or colder winter will impact the cost of heating homes. If the winter turns out to be 10% colder than average, bills could rise by 50%. If it's 10% warmer, it will cost 22% more on average to heat a home. All told, households using natural gas are expected to pay an average of $746 from the beginning of October to the end of March, up from $573 in the same period last year.

Natural Gas Prices Surging

The forecast is based on natural gas futures, which recently hit a seven-year high amid record demand and a lack of inventory. Researchers at the Energy Information Administration also made their predictions based on the likelihood that the winter will be colder than it was in 2020 for most of the country.

Rising energy costs this winter will put more pressure on households which are already experiencing higher prices at the gas pump, in grocery stores, and when eating out. Households still struggling from the COVID-19 pandemic are expected to be the hardest hit by rising natural gas prices. During the pandemic the number of utility disconnections rose because of unpaid bills. Rising energy costs could cause that trend to continue.

Plan Ahead to Save

There are steps households can take to reduce energy costs and prepare for the winter. One is to ensure that heating, ventilation, and air conditioning systems are working properly. An incorrectly-installed HVAC system could increase energy usage by as much as 30%, which would make bills more expensive unnecessarily. Home improvements such as caulking and weatherstripping windows and doors can also save households money on heating.

Energy prices are skyrocketing just as most of the country heads into the winter months. If it's a particularly cold winter, households across the country will be paying more to stay warm. Weatherproofing homes and ensuring heating systems are maintained can help reduce some of those costs.

Friday Fundings: Outschool, Hailo, and Hibob

Online Classes Marketplace Operator Raises $110 Million

Outschool, a marketplace for children’s enrichment classes, raised $110 million in a Series D round of funding. The fundraising, which was led by previous investor Tiger Global Management, values the startup at $3 billion. Other investors which participated in the round included BOND, Lightspeed Ventures, and Union Square Ventures.

The startup has raised funding at a fast clip in the past 12 months as demand for its classes surged during the pandemic. It now has more than 140,000 virtual, small-group classes for kids between the ages of 3 and 18. Investors are enthusiastic about the company even though most schools have returned to in-person learning. Outschool plans to use the money for global expansion and to add new products for parents and schools.

Israeli AI Chip Maker Raises $136 Million

Hailo, a startup which makes artificial chips, raised $136 million in fresh funding. The round, which was led by Poalim Equity and Gil Agmon, gives the company a $1 billion valuation. Hailo has raised a total of $224 million since its inception. Demand for AI processors for devices that sit at the edge of the network is growing, presenting an opportunity for the AI chipmaker. Hailo’s chips are used in smart cities, for industrial applications, and by retailers.

Hailo plans to use the money to make next-generation chips. It also plans to expand in its new and existing markets.

Digital HR Platform Raises $150 Million

Hibob, an HR digital platform startup, has raised $150 million in venture funding. The Series C round was led by the growth equity firm General Atlantic. The round also included participation from Bessemer Venture Partners, Battery Ventures, Eight Roads, and Entrée Capital. The round values Hibob at $1.65 billion. Hibob operates a modern human resources information system platform that enables HR teams, leadership, managers, and employees to collaborate.

Proceeds from the fundraising round will be used for Hibob to expand globally to reach more companies and to develop new technology to support its customers.