There are numerous cautionary tales that highlight the dangers of being overly ambitious. However, it seems that the executives at major retailers may have missed these warnings as they attempted to dominate primary care using their expertise in consumer markets. Retail giants like Walmart and Walgreens have started to scale back their primary care services, while others are still trying to navigate the challenging economics of healthcare delivery.
As they realize the complexities of the healthcare industry, retailers are adjusting their strategies to be more strategic. Some are focusing more on pharmacy services, others are partnering with digital health startups, and some are collaborating with health systems. Despite the variety of approaches, experts believe that building trust and fostering long-term patient engagement should be at the core of retailers’ efforts.
One of the key issues with retailers’ healthcare initiatives is that they may have misjudged the problem they were trying to solve. According to Ashok Subramanian, CEO of health plan Centivo, retailers may have overlooked the importance of trust and relationships in the healthcare sector. Retail clinics may be convenient, but without a focus on building strong patient-provider relationships, it is challenging to maintain patient loyalty and ensure continued engagement.
Neal Batra, a healthcare leader at Deloitte Consulting, suggests that retailers should shift their focus towards prevention and wellbeing to engage consumers proactively. By offering accessible programs centered around preventive care and wellness, retailers can differentiate themselves and attract consumers before they require traditional sick care services.
Additionally, Oron Afek, CEO of healthcare software company Vim, emphasizes the importance of value-based care models for retailers. By adopting value-based contracts, retailers can incentivize long-lasting relationships with patients and focus on keeping them healthy over time. CVS, with its acquisition of Aetna and partnership with Oak Street Health, has been leading the way in managing value-based care successfully.
In conclusion, retailers in the healthcare space need to rethink their strategies, prioritize trust and relationships, focus on preventive care, and consider value-based care models to succeed in this challenging industry. The Aetna acquisition has provided CVS with a substantial capture, along with a retail pharmacy operation that feeds into MinuteClinics and primary care assets that could be monetized in value-based care.
CVS has opened Oak Street Health centers in Texas and Illinois, with plans to open roughly two dozen centers by the end of the year. The company believes that combining Oak Street Health and CVS Pharmacy under one roof is a key component of its healthcare delivery strategy, emphasizing the specific attributes of its assets.
As retailers like Walgreens and Walmart recover from retail clinic failures, they may shift focus towards health system partnerships. Walgreens is currently partnered with 17 health systems across the country, aiming to provide accessible healthcare services through co-located clinics within its stores.
Retailers may continue to pursue partnerships where health systems rent out clinic space, which could lead to increased power for integrated delivery systems and potentially higher prices for customers.
Some retailers are turning towards partnerships rather than acquisitions in the healthcare space. Costco’s partnership with Sesame, announced last September, is seen as a smart move, offering Costco members discounted access to virtual health services.
Retailers are also focusing on preserving their bottom line and immediate reimbursement for services, leading them to partner with startups that offer cash-pay services rather than diving into value-based care.
Some retailers, like Walmart, are refocusing on their core pharmacy businesses and specialty pharmacy services. Walmart recently announced the opening of 25 autoimmune-focused specialty pharmacies across five states, while Walgreens is expanding its specialty pharmacy offerings to include cell and gene therapy services. La unidad abarca la mayoría de los activos de Walgreens en el espacio de la farmacia especializada, incluida la subsidiaria de farmacia especializada AllianceRx.
La unidad de negocio recién renombrada incluirá un centro de innovación de 18,000 pies cuadrados en Pittsburgh, casi 300 farmacias especializadas comunitarias, cuatro farmacias especializadas centrales y más de 1,500 farmacéuticos especializados.
Para los minoristas, es “francamente mucho más fácil y mucho más lucrativo” expandir su presencia en el espacio de la farmacia especializada que en el espacio de la prestación de servicios de salud, señaló Subramanian de Centivo.
Después de todo, es mucho más fácil mantenerse cerca del diablo que conoces que volar demasiado cerca del sol.
Foto: lechatnoir, Getty Images