The Wall Street Journal’s Post

Kevin Matthews thank you for bringing my attention to this article. Many large companies are challenged to solve the challenges we are having with Americas reactive sick care, health care system. The latest is Walmart. The challenges with making primary care work are rooted in financing and where the dollars flow (along with changing the clinical delivery model, etc etc). To have control/influence over the overall health care dollar, through primary care is an effective start. What do you think were the challenges to Walmart and all the other big box retailers that were in and are now out? #vbc #advancedprimarycare #valuebasedcare ChenMed VillageMD OneMedical Group Marathon Health Premise Health

Major retailers are reevaluating their strategies in the #healthcare sector after facing challenges in providing comprehensive primary care. The high costs and complexities of primary care, including #lowreimbursements and workforce issues, have led to setbacks for retailers like #Walmart and #Walgreens. Retailers are now focusing on healthcare services that are typically paid for out of pocket, such as vision clinics, dental services, aesthetics, and weight-loss drug management. Partnerships and collaborations with online platforms and community organizations are expected to increase as retailers test new approaches in healthcare. Retailers that provide services to healthcare providers, such as Best Buy's Geek Squad for home health devices, may find more success in the industry.

Walmart's decision to shutter its healthcare business, including 51 clinics and telehealth services, highlights the significant challenges retail companies face in the complex healthcare system. Despite attempts to leverage their scale and cut costs, retailers like Walmart and Walgreens have struggled with profitability due to the challenging reimbursement landscape and escalating operational costs in healthcare. Health economists suggest that the retail strategy of undercutting prices and gaining market share does not work well in healthcare given its unique cost structure. The closure raises questions about the compatibility of building a reliable primary care business with the demands of publicly traded companies focused on quarterly profits and shareholder value. While some retailers like Amazon continue to expand in healthcare, others like Target are opting for partnership models, indicating the difficulties in sustainably managing a healthcare business alone. https://lnkd.in/eDi-aUX9 #healthcare #healthcareinnovation #accesstocare

It’s interesting to look back at the discussions about the rise of retail healthcare 2 or 3 years ago. I remember some predicting dire results for traditional medical practices. Others were more measured in their predictions. The truth is that what we often see has played out: Disruptors aren’t always well informed about or well prepared for the tough realities of delivering healthcare. It’s hard work. The margins are razor-thin. Finding and keeping staff and providers can be difficult. As I’ve said in the past, sometimes the better answer is smart, strategic partnerships. Via Healthcare Finance News

Why the Walmart Model Doesn’t Work in Healthcare 'Just a few years ago, it looked as though national retail chains such as Walmart, Walgreens, CVS & Amazon were going to be your doctor, too. Now they are medical-school dropouts. In recent years, everyone from large retailers to private-equity firms to insurers have been jockeying to acquire doctor chains. The market top came sometime between mid-2022 and early 2023. Within a span of eight months, Amazon.com said it was spending $3.9 billion to buy the primary-care chain One Medical; a Walgreens unit struck a $9 billion deal to expand its medical practices; and CVS Health agreed to spend a whopping $10.6 billion on the primary-care chain Oak Street Health. At the time, it seemed inevitable that the doctor’s office was increasingly going to be a big-box service—something you do on your way to the snack aisle. But it has NOT worked out. “To put it bluntly, primary care is hard,” said Stephanie Davis, an analyst at Barclays. The problem for Walmart, said Craig Garthwaite, a strategy professor at Northwestern University, is that in medicine you can’t really build economies of scale by driving the costs of such things as purchasing and advertising down to charge lower prices and gain market share. In a doctor’s office, your big-ticket costs are the people': A family physician might make something like $200,000, while a nurse practitioner is paid around $100,000. “If it were easy to provide higher-quality care and take on costs, we wouldn’t have the problems with healthcare we have in this country,” said Mike Pykosz, who co-founded Oak Street and is now president of healthcare delivery at CVS. https://lnkd.in/e-REEfNt

When Walmart got into the retail healthcare business in 2019, its vision was to bring a "one-stop model of healthcare" to communities, addressing the cost and convenience barriers that many Americans face. This week's news that Walmart is shuttering both its health centers and its virtual care operations due to them not being “a sustainable business model” underscores a persistent issue: cost management remains a formidable challenge in healthcare. At Wellbridge Health, we believe there is a better way to reduce costs: get out in front of them by addressing the fundamental cost drivers—chronic conditions such as heart disease, diabetes, and COPD/asthma. And doing so in a way that is simple for the patient and an easy lift for health plans. Our strategy leverages the power of virtual care, with daily/weekly interactions between patients/members and master’s level health coaches trained in behavior change, which is proven to be effective for: • Getting ahead of medical crises • Teaching how to access the right care at the right time at the right place • Improving self-management (including medication management) and preventing disease progression • Providing resource guidance at the right time and removing barriers that address the social determinants of health Focusing on daily patient engagement creates a scenario where avoidable ED/hospitalizations and costs are dramatically reduced while patient outcomes improve. This approach isn’t just feasible; it’s a sustainable business model that benefits everyone in the healthcare space. #virtualcare #connectedcare #SDOH #patientoutcomes #digitalhealth #chronicdisease #WalmartHealth

Retailers are uniquely positioned to capitalize on the growing demand for convenient, affordable and personalized healthcare services, but how? Give this a read for valuable guidance. and you can also download "Unlocking Pharmacy, Health and Wellness: The Retailer’s Playbook"

Walmart declared that there is not a sustainable business model for them to continue investing into healthcare and they will shut down all 51 health centers it opened up and are getting rid of their virtual care program too. The real reason? “This is a difficult decision, and like others, the challenging reimbursement environment and escalating operating costs create a lack of profitability that make the care business unsustainable for us at this time.” This decision shouldn't fool anyone. It's not about healthcare not being interesting and profitable to tech and retail companies, but specifically the US market is a tricky and expensive one. The company’s 4,600 pharmacies and roughly 3,000 Vision Centers won’t be affected though https://lnkd.in/gZhaqNjA MediJourn™

Value-based healthcare is hard to scale…

🚨Walmart is shutting down the Walmart Health clinics and virtual health programs, citing an unsustainable business model.¹ 📢 Why does this matter? This is a huge shift in the retail healthcare landscape with huge implications for the U.S. healthcare system. Walmart's move comes as a surprise, as the company had recently positioned itself as a key player in the retail healthcare space, offering in-person clinics and virtual care options to consumers.² However, Walmart's press release indicates that the company has determined there is not a sustainable business model for continuing these healthcare initiatives.³ This decision will undoubtedly impact health consumers in the U.S., who have come to rely on the convenience and accessibility of retail healthcare options. Retail healthcare has been seen as a way to increase access to care, particularly in underserved areas⁴ but with Walmart's withdrawal from this space we'll have a void that needs to be filled. As the healthcare industry continues to evolve, it will be important to closely monitor the shifting landscape and the impact on consumers.⁵ One way you can do that is through Clarivate's #MarketAccess Intelligence platform. Read more here: https://lnkd.in/eaQacJfA Source: ¹ https://lnkd.in/ef4aHfz5 ²  https://lnkd.in/eTXuAA3N ³  https://lnkd.in/ehpka6BQ ⁴  https://lnkd.in/eSYpB3AW ⁵  https://lnkd.in/eE7vk4a7 #RetailHealthcare #MarketAccess #HealthcareIndustry #VirtualCare #HealthcareAccess #HealthcareEvolution #HealthcareTrends #PatientAccess #Pharmaceuticals #LifeSciences