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Austin, Texas-based Harbor Health, a primary and specialty care clinic group and insurance company, announced it is acquiring 32 clinics from VillageMD.
The acquisition will expand the company's presence in the Texas market, including San Antonio, El Paso and Dallas, as well as Austin, quadrupling Harbor Health's clinical presence from 11 to 43 clinics and adding more than 80 clinicians, including physicians and advanced practice providers.
The expansion will establish 10 clinics in Austin, 10 in San Antonio, six in El Paso and six in Dallas.
Additionally, the company said the expansion will also allow Harbor Health to enhance its insurance plans by expanding the coverage it provides to employers and consumers.
In November 2025, the company will be added to healthcare.gov, the individual insurance marketplace, where it will offer fully insured individual and family health plans.
"We have an increasing demand for our care and the Harbor Health and VillageMD teams are strongly aligned in our clinical model to focus on high-touch care, putting the consumer first and coordinating care journeys, to result in better health outcomes," Dr. Clay Johnston, Harbor Health cofounder, said in a statement.
THE LARGER TREND
Earlier this month, Harbor Health secured $130 million. Existing investors General Catalyst, 8VC and Alta Partners co-led the funding round, while DFO Management increased its support.
The funds were used to expand the company's large employer health insurance plans and launch individual and family insurance plans.
In May, Harbor Health launched a mental health program that integrates within its clinics. The aim is to build a system that ensures the right level of care is available when needed, helping address behavioral health issues quickly and efficiently.
In 2024, Harbor Health secured $95.5 million in funding. General Catalyst led the round, with participation from Alta Partners and 8VC. The funds were used for continued growth in providing primary care services and broadening the scope of specialty care offerings.
Through VillageMD's operating companies Village Medical, Summit Health, CityMD and Starling Physicians, the company offers value-based primary care, multispecialty care, urgent care services and virtual care throughout the U.S.
In 2024, Summit Health opened two new multispecialty healthcare hubs in Fair Lawn and Bridgewater, New Jersey. The two facilities brought together more than 60 primary care and specialty physicians in more than 20 areas of medicine.
In 2024, Walgreens, which previously owned a stake in VillageMD, closed 60 of the company's clinics that it deemed were underperforming. The company exited five markets on the heels of weaker-than-anticipated earnings in the fourth quarter of last year.
