Prediction: Companies like Walmart & Walgreens Will Disrupt Healthcare
Status: Occurring
“Motivated by aging baby boomers and government insurance coverage for millions of uninsured, companies like Walmart, Walgreens, or even health clubs like Crunch will march deeper into health care. Many Walmarts already have independent clinics and offer affordable, generic medicines, but the company has barely scratched the surface. It’s just a matter of time before it makes a push into health insurance, negotiating hospital rates, and doing to the medical supply chain what it did to retail. ”
Econovation, 2011,p.172
What Happened
Amazon, Berkshire Hathaway and JPMorgan Team Up to Try to Disrupt Health Care, 2018
“Three corporate behemoths — Amazon, Berkshire Hathaway and JPMorgan Chase — announced on Tuesday that they would form an independent health care company for their employees in the United States…sending stocks for insurers and other major health companies tumbling.”
$69 Billion Merger of Aetna and CVS Health Is Approved With Conditions, Oct 2018
CVS to Buy Aetna for $69 Billion in a Deal That May Reshape the Health Industry, Dec 2017
“A combined CVS-Aetna could position itself as a formidable figure in this changing landscape. Together, the companies touch most of the basic health services that people regularly use, providing an opportunity to benefit consumers. CVS operates a chain of pharmacies and retail clinics that could be used by Aetna to provide care directly to patients, while the merged company could be better able to offer employers one-stop shopping for health insurance for their workers.”
Why We’re Picking Walmart And CVS Over Doctors’ Offices 2017
“Big chains like CVS, Walgreens and Walmart are stepping in to try to correct this market failure. These and other retailers are opening hundreds of new walk-in clinics, staffed by medical professionals such as nurse practitioners and physician assistants. They’re betting that Americans craving speed, convenience and easy-to-understand prices will be willing to break their habit of expecting a doctor to handle all of their medical issues…[R]etail clinics are spreading rapidly: There currently are almost 1,900 across the U.S., up more than sevenfold since 2007, according to data compiled by Merchant Medicine, a consulting firm that tracks the sector.”
“As the company pivots toward full-service health care, its goal is to increase access, lower costs, and improve outcomes for patients. It is also working with employers as a pharmacy-benefits manager and treats patients at the community level with its 980 MinuteClinic locations—the largest clinic network in the U.S. Soon the clinics will also offer everyday care for chronic conditions like diabetes and high blood pressure.”
What’s Next?