Walgreens Pharmacy Cuts Relationship With Theranos, Closing 40 Wellness Centers
Walgreens, the major drug store chain that has seemingly made other franchise drugstores obsolete, is beginning to flex its rather large muscles. This time, according to CNBC, Walgreens said that they would be ending their relationship with the Silicon Valley-based blood-testing company Theranos.
#Walgreens Finally Walked. Here's Why That's So Bad For #Theranos – https://t.co/EkDqufDKE2 pic.twitter.com/OvPWFiuHUS
— United Drug Supply (@udspharma) June 13, 2016
Theranos isn’t just losing its ties with Walgreens but with many other companies as well. Theranos, once a company praised for its unique approach within the medical community, has now become a topic to criticize. The botched accuracy testing reports of Theranos has helped in its rather short shelf life and led to this ordeal that they are facing. However, no fault is at hand with Walgreens, and they are not currently under any scrutiny.
Walgreens, the major drug store conglomerate, states that it would get rid of the 40 Wellness Centers with the name Theranos. Theranos Wellness Centers bearing attachment to Walgreens have already been shut down in California, and they will soon become vacant across Arizona. Walgreens is standing firmly behind its decision and shows no signs of wavering.
An announcement by the senior vice president and head of healthcare for Walgreens shed light on their ordeal with Theranos in hopes of leaving their name untarnished.
“In light of the voiding of a number of test results, and as the Centers for Medicare and Medicaid Services (CMS) has rejected Theranos’ plan of correction and considers sanctions, we have carefully considered our relationship with Theranos and believe it is in our customers’ best interests to terminate our partnership,”
However, Theranos didn’t just stand still against Walgreens and its statement. A registered spokesperson from the blood-testing company issued a counter statement towards Walgreens, letting its loyal customers know that they will still continue to have retail locations available for their customers apart from Walgreens. It isn’t the end of the line for them yet.
“We are disappointed that Walgreens has chosen to terminate our relationship and remain fully committed to our mission to provide patients access to affordable health information and look forward to continuing to serve customers in Arizona and California through our retail locations.”
As mentioned above, Theranos was once praised and honored for its services and unique approach within the healthcare industry, which is one of the reasons why Walgreens chose an alignment. Due to the recent probing by media, Theranos has found itself being asked questions regarding the accuracy of their tests. To save their company image, Walgreens decided that it was in their best interest to step away from their partnership.
According to the Wall Street Journal, the decision for Walgreens to sever ties with Theranos proves to be one of the biggest blows Theranos has felt thus far. The blood-testing sites within the Walgreens stores have been a major source of income for Theranos, analysts say. The connection with Walgreens has also offered a form of acceptance with its newer customers since the merger was announced back in September 2013, allowing customers of Walgreens to easily join Theranos.
#Walgreens ditches #Theranos amid voided tests and possible federal sanctions https://t.co/gTk1g0nVdF pic.twitter.com/438I5TzYmq
— Modern Digital (@technology11244) June 13, 2016
One of the things Walgreens was worried about is the accuracy of Theranos’ tests. Theranos also has to look forward to the fact that the tests were done with traditional lab instruments and not the Edison devices, which further prompts potential fines and sanctions against Theranos. That is another reason why Walgreens had the foresight to sever its ties with the company.
However, Walgreens has had its fair share of recent incidents. The Inquisitr previously reported that a lady shot someone in a Walgreen parking lot. There were also incidents of Walgreens passing off the wrong prescriptions to its customers.
Comment what you feel about this business decision handed down by the Walgreens executives and if you agree with them. Do you think Theranos should be offered another chance by Walgreens, or do you stand by Walgreens decisions? Let us know also if you ever visited one of the Theranos Wellness Centers located in a Walgreens prior to its closure.
[Photo by Charles Krupa/AP Images]
