Walgreens is expanding its value-based care footprint in its first major health care move since the sudden departure of CEO Rosalind Brewer earlier this month, Tina writes.

Why it matters: The national pharmacy giant, which also recently saw its CFO leave, has signaled its desire to bolster a health care delivery business that has fallen short of investors' expectations as retailers angle for primacy in the sector.

Driving the news: Walgreens announced this morning it's teaming up with Pearl Health, which has a platform to help enable value-based care, to accelerate Walgreens' collaborations with community-based primary care physicians.

• Walgreens officials called it an example of how the company is continuing to lean into its value-based care portfolio and partner with local health systems and providers.
• "How we differentiate ourselves is, we want to be able to partner with every health plan, every health system every, doctor," John Driscoll, president of U.S. healthcare at Walgreens Boots Alliance, told Axios.

This latest deal is purely a partnership involving no capital spending, Driscoll said.

• The idea is to marry Pearl's operating system and capabilities to Walgreens' care delivery assets. Walgreens will act as a management services organization for doctors and hospitals, Driscoll said.

Yes, but: The company's major health care deals with urgent and primary care providers in recent years haven't yet translated to big profits, and analysts said there's uncertainty about the company's direction on health care.

• "I think Walgreens needs to reiterate its priority of building up its U.S. health care business and show promising signs from both top- and bottom-line perspectives to regain confidence from investors," Keonhee Kim, equity analyst at Morningstar, told Axios.

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Meanwhile, other retail giants are moving forward in their quest to build a truly one-stop health care shop, write Axios' Erin Brodwin and Aaron Weitzman.

Driving the news: Incited by Amazon's $3.5 billion purchase of clinic operator One Medical, Walmart is the latest commerce giant accelerating moves in the primary care space.

• Walmart, which has reportedly struggled with its health care strategy in recent years, is reportedly in talks with ChenMed, an operator of a series of clinics.
• A deal that would value ChenMed at several billion dollars could still be weeks away and may still fall apart, Bloomberg reported. The companies did not respond to a request for comment.
• Walmart has reportedly paused its plans to build 4,000 of its own primary care clinics, according to Business Insider.

A version of this story was published first on Axios Pro. Get news like this by subscribing.

Doctors are urging Medicare officials and lawmakers to work together to ease steep cuts to physician payment slated for next year.

Why it matters: Congress holds most of the power when it comes to changing Medicare's physician payment system. But amid political gridlock and a jam-packed congressional schedule, doctors are urging the Biden administration to do whatever it can to boost Medicare payments next year.

Driving the news: In July, the Centers for Medicare and Medicaid Services proposed a 3.36% decrease to a key physician payment metric known as the conversion factor. Some of that decrease is statutorily mandated.

• Medicare's physician payment system doesn't account for inflation, though by the agency's own estimates medical practice costs will increase by 4.5% in 2024.

What they're saying: "These cuts are unsustainable and unconscionable," American Medical Association president Jesse Ehrenfeld said in a statement.

• Medicare administrators should "use every policy lever available" to lessen payment cuts for physicians next year, the AMA wrote to CMS on Monday as the payment rule's comment deadline closed.
• The Medical Group Management Association in its own letter to CMS asked officials to work with Congress to lift physician pay, warning that the current proposal could force providers to limit new Medicare patients or make cutbacks to care.

Our thought bubble: Congress has at least partially averted doctors' scheduled Medicare cuts over the past several years, and it's possible — even likely — they'll figure out how to do so again.

• But the threat of a government shutdown and a cap on federal budget growth could limit the prospects for congressional action before the end of the year.

Most Americans say they wouldn't want to live in a nursing home — or for a relative to live in one — over concerns about care quality and cost, Maya writes about a new Gallup survey.

Why it matters: Nursing homes already had an image problem before they were hit hard by COVID-19, and the poll suggests they have more work to do to regain public trust.

• The Biden administration's recent proposal to boost nursing home staffing requirements could help improve public confidence in the industry, though some advocates say the policies don't go far enough to ensure patient safety.

By the numbers: More than 40% of U.S. adults rate nursing home quality as poor or failing, per the survey. And 70% said they'd be at least somewhat uncomfortable about going into a nursing home when they can no longer take care of themselves.

The other side: Nursing homes provide life-saving care to seniors and people with disabilities, and it's important to strengthen — rather than demonize — nursing homes so they can still provide care to people who require it, said the American Health Care Association, an industry group.

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🦠 California is on track to undo a law punishing doctors who spread COVID misinformation. (LA Times)

🩸 The American Red Cross said it urgently needs blood donations after last month's climate-related disasters hurt collection efforts. (HealthDay)

🏥 Washington University said it will stop providing gender-affirming drugs to minors who are still eligible under a restrictive new Missouri law. (St. Louis Post-Dispatch)