Healthcare regulators for the state of Connecticut are investigating VillageMD's acquisition of a 30-location medical group in the state, Hartford Business Journal reported March 13.
VillageMD, which is majority owned by Walgreens, completed the deal for Starling Physicians on March 1, announcing it two days later.
The Connecticut Office of Health Strategy plans to inquire into whether the transaction required a certificate of need, which is supposed to be filed for ownership transfers of large group practices in the state, according to the story.
"Starling remains a physician-owned medical practice and will continue to provide high-quality medical care to the communities it currently serves," VillageMD said in a statement published by Hartford Business. "As a result, a CON was not required for the transaction."
Organizations face civil penalties in Connecticut for willfully failing to apply for a certificate of need when it's required, the news outlet reported.