Tech-enabled, value-based primary care provider VillageMD is looking to public markets, according a Bloomberg report. The Walgreens-backed company uses a team-based model to provide care for patients.

Teams include pharmacists, lab techs, behavioral health counselors, nurses, physicians and other care givers.

The company has a hybrid approach to care that includes in-person clinics, virtual care and home visits. Several of the clinic locations are at Walgreens – which previously pledged to invest $1 billion in equity and convertible debt to VillageMD over a three-year time frame. However, the company also partners with other physician groups.

According to Bloomberg's sources, the company is looking to raise as much as $1 billion, which could boost its valuation to $10 billion.

WHY IT MATTERS

IPOs are becoming a common trend in tech-enabled healthcare companies. According to Rock Health, six traditional digital health companies went public through an IPO in 2020.

In 2019, Rock Health reported six IPOs. They came after a three-year IPO drought, according to the research organization.

THE LARGER TREND

VillageMD isn’t the only company using a hybrid approach to care. OneMedical is another tech-backed primary care company. In 2020, the provider went public through an IPO.

There are several other companies that provide brick-and-mortar and virtual services, including women's health companies Kindbody, which has raised a total of $32 million; Advantia, which landed $45 million in 2020; and Tia, which raked in $24.27 million in its Series A funding.