Walgreen Co. to Acquire Convenient Care Clinic Operator Take Care Health Systems

Walgreen Co. (NYSE:WAG)(NASDAQ:WAG): Purchase will be step toward new vision of providing patient-first health care Pharmacies and convenient care clinics to form core of future health care services Walgreen Co. (NYSE:WAG)(NASDAQ:WAG) today said it intends to acquire Take Care Health Systems, a leading operator of convenient care clinics. The clinics, combined with the drugstore chain’s nearly 5,700 pharmacies across the country, will form the core for the future rollout of a variety of patient-focused health care services. Take Care Health Systems operates 50 health care clinics in Chicago, Kansas City, Milwaukee, St. Louis and Pittsburgh. The transaction is expected to close next week, subject to the completion of a definitive agreement. Financial terms weren’t disclosed. "We’re excited to team with the preeminent leader among convenient care clinic operators,” said Gregory D. Wasson, president of Walgreen Co. "Together, we’ll create a new model of how health care is provided across America. That includes additional health and wellness services such as immunizations, and senior and diabetes services through partners like Joslin Diabetes Center.” Take Care Health has distinguished itself from other convenient clinic operators through an integrated approach to the patient’s long-term well-being, rather than concentrating solely on quick treatment. "Take Care Health has tremendous people and technology, along with a passion for health care that meets the needs of patients,” said Wasson. "They are recognized as the employer of choice by nurse practitioners, thanks to a focus on building systems with their input.” With the acquisition, Walgreens expects to have more than 400 Health Corner Clinics operating within its stores by the end of 2008. Currently, the company has 59 Health Corner Clinics in Atlanta, Chicago, Kansas City, Las Vegas, Milwaukee and St. Louis. "When founding Take Care Health in 2004, we set out to begin closing the socioeconomic divide in today’s health care system by delivering accessible, high-quality and affordable health care through the operation of clinics inside retail pharmacies,” said Hal F. Rosenbluth, chairman of Take Care Health Systems. "Walgreens has shared in our mission from the beginning of our relationship, and we will be proud to formally join the Walgreens family. This transaction will further enable Take Care Health Systems to execute upon our core objectives of creating a national footprint of clinics, thus making our health care delivery system available to as many people as possible.” Take Care Health integrates with the traditional medical community toward a shared goal of providing patient-focused care with each encounter. Take Care nurse practitioners encourage all patients to have a "medical home,” a medical provider that they see routinely for on-going medical needs and routine exams. If a patient’s condition falls outside of the clinic’s scope of practice, the patient is referred back to their primary care provider for follow-on care. If a patient does not have such a provider, nurse practitioners will offer a list of providers in the area accepting new patients. Take Care nurse practitioners collaborate with local physicians who are available for consultation at all times the practitioner is treating a patient. The company uses nationally recognized, evidence-based clinical guidelines for treatment and electronic medical record technology allowing patients to take visit records to their other providers, ensuring continuity of care. Take Care Health follows quality and safety standards as outlined by the Convenient Care Association, the industry’s trade association, and is aligned with guidelines for retail clinics set by the American Academy of Family Physicians and the American Medical Association. Clinics are staffed by certified nurse practitioners who treat patients 18 months and older for common illnesses such as strep throat, ear and sinus infections, pink eye and poison ivy, and are able to prescribe for the ailments they treat. Take Care nurse practitioners also provide diagnostic testing, vaccinations and some physicals. As a wholly-owned subsidiary of Walgreen Co., Take Care Health Systems will maintain its headquarters in Conshohocken, Penn., as well as its existing management team. Take Care Health will continue to operate its 50 clinics in Chicago, Kansas City, Milwaukee, Pittsburgh and St. Louis. About Walgreens Walgreen Co. is the nation’s largest drugstore chain with fiscal 2006 sales of $47.4 billion. The company operates 5,693 stores in 48 states and Puerto Rico, including 77 Happy Harry’s stores in Delaware and surrounding states. Walgreens also provides additional services to pharmacy patients and prescription drug and medical plans through Walgreens Health Services, its managed care division, which includes Walgreens Health Initiatives, Inc. (a pharmacy benefits manager), Walgreens Mail Service Inc., Walgreens Home Care Inc., and Walgreens Specialty Pharmacy. About Take Care Health Systems Take Care Health Systems (www.takecarehealth.com) is a leading independent operator of convenient care clinics. Take Care Health combines best practices in medicine and the expertise and personal care of Take Care nurse practitioners to provide high-quality, accessible and affordable health care to all individuals. Take Care Health operates 50 health care clinics in Chicago, Kansas City, Milwaukee, Pittsburgh and St. Louis. Take Care Health uses nationally recognized clinical guidelines, industry standards set forth by the Convenient Care Association (www.convenientcareassociation.org) and an electronic medical record system to ensure the highest quality care. The company maintains a robust quality assurance program, including collaborating physician record review, peer review and compliance auditing.