Walgreens Lose Big in Test Case

First let's talk some background. During the start of the pandemic, getting a COVID-19 test required a doctor's okay. So, Walgreens teamed up with a virtual care company, PWNHealth, to handle test orders. They set up a system where PWN's doctors could order tests for Walgreens customers. Everything ran smoothly until things got messy. As the rules changed, Walgreens decided to have its own pharmacists order tests. But here's where it gets complicated. Walgreens didn't tell PWN about this change, although they kept PWN’s website mark. If you are a Walgreens customer all this means is confusion. PWNHealth, who does business as Everly Health, wasn’t happy. Things escalated further when PWN filed a demand for arbitration. Everly Health and Walgreens had a big argument but this time it was in court documents. Everly Health claimed Walgreens breached their contract, and others issues. Things got heated.

A fair decision was made by an arbitration panel and Walgreens had no choice but to pay a huge $987 million. But Walgreens fought back and disagreed with the amount. Walgreens argued the amount should be much lower. The federal judge in Delaware put an end to it all. He said the money agreed upon was correct. Walgreens spokesperson expressed their disappointment and plans to appeal the decision. This year they are facing financial struggles. Walgreens recently announced they are cutting way back on stores in the coming years. This is not the first time Walgreens has faced difficulties. They've been dealing with issues like medication reimbursements and changing customer habits. Walgreens is trying to turn things around by getting back to basics as a retail pharmacy. But is that enough?

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