A Medical Device Daily

Pharmacy giant Walgreen (Deerfield, Illinois) intends to acquire Take Care Health Systems (Conshohocken, Pennsylvania), an operator of convenient care clinics.

Walgreen said that the clinics, combined with its nearly 5,700 pharmacies across the country, will form the core for the future rollout of a variety of patient-focused healthcare services.

The transaction is expected to close next week, subject to the completion of a final agreement. Financial terms weren't disclosed.

Take Care operates 50 healthcare clinics in Chicago, Kansas City, Milwaukee, St. Louis and Pittsburgh.

Gregory Wasson, president of Walgreens, said that with the purchase the company plans to create "a new model of how healthcare 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 [Boston]."

Walgreens said it 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.

Take Care describes its services as an "integrated approach to the patient's long-term well-being, rather than concentrating solely on quick treatment."

Hal Rosenbluth, chairman of Take Care, said, "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 healthcare delivery system available to as many people as possible."

The company says that if a patient's condition falls outside of the clinic's scope of practice, the patient is referred back to his or her primary care provider for follow-on care. It says it uses 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 is a portfolio company of ETF Venture Funds. ETF says it was the sole venture capital investor in Take Care during its first round of financing in 2005. Subsequently, the company raised $77 million, ETF describing that as the largest capital raise in the healthcare services industry in two years, and the largest such funding to date in the retail healthcare space.

• DeSanto Realty Group (Radnor, Pennsylvania), a sponsor of tenant-in-common transactions, reported closing on the $25.7 million purchase of Cypress Medical (Wichita, Kansas), a medical office complex and DeSanto Group's first medical office acquisition. The facility includes operating rooms, and various pre-and post-operative accommodations.

Gary DeSanto, CEO of DeSanto Realty, said, "As Kansas' largest city, Wichita offers a vibrant economy and a progressive environment in which to grow. All of theses factors, as well as the stability of medical services now and into the future, made this a perfect property for our TIC investors."

DeSanto Realty owns and manages commercial and residential properties nationwide.

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