Kroger Health’s Post

🌟 𝑷𝒓𝒆𝒔𝒄𝒓𝒊𝒑𝒕𝒊𝒐𝒏 𝒇𝒐𝒓 𝑳𝒐𝒔𝒔: 𝑪𝒊𝒈𝒏𝒂'𝒔 $1.8𝑩 𝑾𝒓𝒊𝒕𝒆-𝒐𝒇𝒇 𝒐𝒏 𝑾𝒂𝒍𝒈𝒓𝒆𝒆𝒏𝒔' 𝑽𝒊𝒍𝒍𝒂𝒈𝒆𝑴𝑫 𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕💊 𝑰𝒏 𝑨𝒑𝒓𝒊𝒍 2024, Cigna Healthcare's Evernorth division invested $2.5 billion in VillageMD at the end of 2022, gaining a minority share in the Walgreens-owned primary care🏥 company. The #corporation wrote off over $1.8 billion💸 of its #investment in the provider during the first quarter of 2024, accounting for more than half of its total investment💰. Executives stated that despite Walgreens closing a significant number of clinics, VillageMD's growth has been lackluster📉. Due to the recent struggles faced by 💊retail #health providers, Walmart decided to close its 🏥clinics earlier this week, only days after announcing that it will be expanding through early 2025. In collaboration with VillageMD, Evernorth's principal objective is to keep expanding its value-based care👩🏻⚕️ initiatives in the areas where the primary care provider is having the greatest success. 𝑳𝒐𝒐𝒌 𝒂𝒕 𝒐𝒖𝒓 𝑪𝒐𝒓𝒓𝒆𝒍𝒂𝒕𝒆𝒅 𝑹𝒆𝒑𝒐𝒓𝒕 👉: https://bit.ly/44sxOfb #Cigna #Wallgreens #Evernorth #VillageMD  #PrimaryCare #ValueBasedCare #prophecymarketinsights

Walmart, Walgreens, CVS Health Clinic Experiment is Struggling… Despite their early promise of convenience and accessibility, in-store clinics haven't been the golden egg-laying goose many retailers originally envisioned. That's why Walmart recently announced it would shutter its 51 in-store full-service healthcare centers. Another symptom of the ailing market is Walgreens, which announced the closing of 160 VillageMD locations (Walgreens owns a 53% stake in VillageMD, which also operates free-standing clinics). CVS's MinuteClinic, the largest in-store clinic with over 1,100 locations, has announced dozens of clinic closings this year in Southern California and New England. But the business experience in the retail health clinic space has largely disappointed. That's not a huge surprise to Timothy Hoff, professor of management healthcare systems at Northeastern University. The retail clinics depend on volume selling. "If you can't pump through a lot of patients, it doesn't work," Hoff said. Staffing was also a struggle. "They ended up being more expensive to run than they thought, combined with a workforce shortage, they just didn't work." There is also the issue of cross-selling. A lot of retail chains use clinics as loss leaders to steer customers to other products and services they sell: lure customers in, in the hope they buy other stuff. But the model didn't materialize. If someone is sick enough to seek care, they probably won't be in the mood to purchase a pint of ice cream or socks while they are out. Likewise, "people coming in for groceries won't necessarily hop over to the clinic," Hoff said. #retailhealth #instoreclinics #walmart #walgreens #cvs #MinuteClinic #healthcare #healthcarecosts #workforceshortage #businessmanagement #pharmacy https://lnkd.in/g2-KuFB3

My take: In an inflationary environment and amidst the evolving retail landscape, Walmart's decision to close its health centers and virtual care while simultaneously launching a new private-label food brand reflects a strategic move towards optimizing its business portfolio. This decision appears to align with three key observations: firstly, the rising market share growth of private-label products in the packaged foods category, indicating a growth opportunity for Walmart to strengthen its position in this category. Secondly, there's recognition that while good primary care is essential, it poses challenges in terms of appropriate business model economics, particularly when retail customers may struggle with out-of-pocket payments. Finally, it's important to note that convenience care does not necessarily lead to affordable care. By reallocating resources from these healthcare areas to areas of potential growth, Walmart demonstrates its agility in responding to market dynamics while navigating the complexities of consumer demand, the competitive retail landscape, and financial sustainability. https://lnkd.in/gM_Dkhhf https://lnkd.in/gKkbi_sC

🔍 Walmart's closure of 51 health centers across multiple states is a telling development in the retail-to-healthcare transition saga. This outcome, both surprising and expected, underscores the significant challenges retail giants face when entering the complex healthcare industry. What can we learn from this venture? More importantly, what are the implications of these closures for the rural populations in these regions, and across America? Join the conversation. https://lnkd.in/dEFf6gfx #HealthcareIndustry #BusinessInnovation #RetailHealthcare

I recently came across the news about Humana and Walmart teaming up to offer primary care services, and I couldn't help but reflect on the implications of this partnership for the healthcare landscape. This collaboration is a fascinating move, combining Walmart's vast retail presence with Humana's healthcare expertise. It’s an innovative approach to making primary care more accessible, particularly for those in underserved areas. However, this model does raise some questions. Will patients feel confident receiving care in a retail environment? There’s always a concern about the quality of care in such settings, and building trust will be essential. Additionally, integrating healthcare into retail operations presents its own set of challenges, from logistics to regulatory compliance. On the flip side, this partnership opens up exciting opportunities. By focusing on preventive care and leveraging data analytics, Humana and Walmart could significantly improve health outcomes and reduce costs. Plus, it sets a precedent for how retail and healthcare can collaborate in the future. 💡 As a market research consultant, I see this as a pivotal moment for both industries. Over the past few years, I've noticed a growing trend of non-traditional players entering the healthcare space, driven by the need for more accessible and cost-effective care solutions. It will be interesting to watch how this partnership evolves and what it means for the broader healthcare ecosystem. 𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝘆𝗼𝘂𝗿 𝘁𝗵𝗼𝘂𝗴𝗵𝘁𝘀 𝗼𝗻 𝘁𝗵𝗶𝘀 𝗰𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝗼𝗻? 𝗗𝗼 𝘆𝗼𝘂 𝘁𝗵𝗶𝗻𝗸 𝘄𝗲’𝗹𝗹 𝘀𝗲𝗲 𝗺𝗼𝗿𝗲 𝗿𝗲𝘁𝗮𝗶𝗹 𝗴𝗶𝗮𝗻𝘁𝘀 𝘀𝘁𝗲𝗽𝗽𝗶𝗻𝗴 𝗶𝗻𝘁𝗼 𝘁𝗵𝗲 𝗵𝗲𝗮𝗹𝘁𝗵𝗰𝗮𝗿𝗲 𝘀𝗽𝗮𝗰𝗲? #healthcare #innovation #primarycare #seniorcare #medicareadvantage #telehealth #behavioralhealth #retailprimarycare #accesstocare #patientoutcomes Humana Walmart Health ------------------------------------------------------------------------------------------ PS: Hey there! I'm Jess, a market research consultant specializing in the healthcare and animal health industries. I help clients navigate market complexities and capitalize on growth opportunities through customized research and analysis. If you're interested in discussing how current and emerging trends could impact your business or strategy, let's connect!

Healththink Post#12. I can understand why retail giants have pursued primary care--(1) new revenue streams, (2) additional boosts to lagging store sales, and (3) low cost equipment, staffing, and overhead costs. Makes sense. But the economics of fee-for-service primary care in the US can be challenging. Large health systems can use primary care to control patient flows to their facilities and also drive more lucrative specialty care. I don't see the same upside for the retail giants as their ability to leverage primary care to support other service lines through vertically integrated services is limited relative to traditoinal heatlhcare. Hence, we hear of WalmartHealth announcing the closing of 51 stores. #Cicero #healthcare

I think this is the second time Walmart has canceled its health services strategies, so I cannot say I am surprised. Walgreens has also had recent failures with a primary care strategy in both VillageMD and Walgreens Health. Both Walgreens and Walmart, like CVS, needed to buy a health plan and unfortunately there are not many good options available in the market. Vertical and horizontal integration, it seems, continues to be the best strategy in a healthcare services market plagued by monopoly. #digitalhealth #WalmartHealth

Last week, Walmart, the biggest retailer in the United States, announced it is shutting down its health centers nationwide - a clear sign of a broken health care system that prioritizes profits over people. And helps explain why people have so little trust in the system. At USofCare, we believe in a health care system that's equitable and accessible for all Americans, regardless of their financial status. 𝗪𝗲’𝗿𝗲 𝗮𝗱𝘃𝗼𝗰𝗮𝘁𝗶𝗻𝗴 𝗳𝗼𝗿 𝗮 𝗵𝗲𝗮𝗹𝘁𝗵 𝗰𝗮𝗿𝗲 𝘀𝘆𝘀𝘁𝗲𝗺 𝘁𝗵𝗮𝘁 𝗽𝗿𝗶𝗼𝗿𝗶𝘁𝗶𝘇𝗲𝘀 𝗽𝗮𝘁𝗶𝗲𝗻𝘁𝘀' 𝗻𝗲𝗲𝗱𝘀. Take a look at how we are building a better health care system with our United Solutions for Care 👇 https://lnkd.in/gfZABWJk

After 5 years - working in primarily rural areas - Walmart is leaving as there is no path toward a successful business model in these communities. The closures are also going to include virtual services as well a the offices at the stores. If Walmart can't make it work - then I'm not sure there is another option to help these areas. The rural USA vs urban USA divide will continue. #healthcare #businessmodel #bizlessons.

Optum winds down its telehealth business. Walgreens shutters hundreds of VillageMD sites and writes off their ~$6B investment as essentially a total loss. Now Walmart Health is closing *all* of its 51 clinics and pulling back on their bold aspirations to open hundreds of them over the coming years. This is a pathetic turn of events for the company, but not particularly surprising given all the other failures from BigCos over the last decade. I'm just trying to finish up my takeaways from the Oracle Health summit last week, but these big announcements keep coming. Now I need to write up an analysis of the latest from both Optum and Walmart 😬 But first, what are this community's thoughts on these stories and their implications? Some of my initial questions upon hearing this news: • What does the ongoing collapse of retail health and telehealth services say about the economics of healthcare in this country? Is this simply more of the "big dogs" biting off more than they can chew and having unrealistic expectations? Or is this tied to them being for-profit, publicly traded organizations that can't rationalize healthcare's slim margins to shareholders? (Thanks for nothing Milton Friedman) • How many billions of dollars have been wasted on these efforts, increasing access in certain areas of the country only to pull out of those markets suddenly like this? Is there anything positive we can take away from these much-hyped failures to execute? Is there something more fundamental this can teach us about how care delivery can successfully be transformed? • What impact does profit-hunting by non-healthcare organizations have on the patient experience of care and population outcomes? Have failures like this been looked at by anyone through an academic or public health lens yet? #retailhealth #telehealth #WalmartHealth