Walmart closing 51 Health Centers over “Lack of Profitability!” Walmart Health Virtual Care (telemedicine) offerings will also end. Article by Daniella Alessandra Genovese Fox Business Network April 30, 2024 MY TAKE: · What does ‘lack of Profitability” really MEAN? o Is it meant that this service line is losing money – financially upside down? o Or does it mean that the line is not producing the “EXCESS PROFITS” that were envisioned - and that corporate leaders and shareholders demand? · Healthcare delivery is NOT a simple business model, though increasingly we see corporate entities entering this arena, often envisioning large profits or - in the case of private equity - valuable ASSETS whose value can be accelerated over short periods - or at least sold off as value-added components. · It has been said that the LURE of ‘excess profit’ invariably leads to GREED, and that in healthcare - greed invariable leads to worsening conditions within healthcare workplaces and worsening outcomes for patients! American Medical Association American Hospital Association American College of Emergency Physicians U.S. Senate Committee on Health, Education, Labor, & Pensions Tennessee Medical Association Jesse Pines Chadd Kraus Lara Vanyo Rita Manfredi TENNESSEE COLLEGE OF EMERGENCY PHYSICIANS Timothy Wilson Ryan Stanton Gabe Kelen, Deidre McPhillips Mollie Pillman Alison Haddock, MD, FACEP Susan Morse mor Chelsea Torres Amy Feldman Jesse Ehrenfeld MD MPH Mel Cortez Larry Bucshon, M.D. Peter Stavros Fox article link - https://lnkd.in/gynsbScT
Harry W Severance, MD’s Post
More Relevant Posts
-
Sam, you are more perceptive than me. I believed that Walmart would become a force to reckon with in retail healthcare (not in in-patient care, obviously). Also, that this competition would be good for individuals. I was wrong on the first part. The second part is now moot, but I continue to believe that outside competition is the medicine our healthcare system needs. #RetainHealthcare #Competition #WalmartHealthcare
Walmart is exiting healthcare. This doesn’t surprise me. Walmart was never designed for healthcare, it was designed for retail. Everyone wants a piece of the $4T pie, but it’s a pie full of indigestible ingredients that would make the biggest companies choke. Especially companies that were never built for healthcare. - fee-for-service doesn’t work, especially with very low fees - relying on legacy payors doesn’t work - using insurance for primary care doesn’t work - not paying providers enough doesn’t work - having a clinic next to gardening supplies doesn’t work Throwing millions at healthcare doesn’t automatically work with a large base that comes to you for something else. I believe a properly built and well-executed healthcare startup that “thinks differently”, will eventually move the needle on improving the American healthcare experience. It’s coming, and will surprise everyone.
To view or add a comment, sign in
-
Walmart is exiting healthcare. This doesn’t surprise me. Walmart was never designed for healthcare, it was designed for retail. Everyone wants a piece of the $4T pie, but it’s a pie full of indigestible ingredients that would make the biggest companies choke. Especially companies that were never built for healthcare. - fee-for-service doesn’t work, especially with very low fees - relying on legacy payors doesn’t work - using insurance for primary care doesn’t work - not paying providers enough doesn’t work - having a clinic next to gardening supplies doesn’t work Throwing millions at healthcare doesn’t automatically work with a large base that comes to you for something else. I believe a properly built and well-executed healthcare startup that “thinks differently”, will eventually move the needle on improving the American healthcare experience. It’s coming, and will surprise everyone.
Walmart Health's shutdown underscores major challenges for retail health 'disruptors'
fiercehealthcare.com
To view or add a comment, sign in
-
Walmart is closing all 51 of its health centers and Walmart Health Virtual Care due to a lack of profitability. The company says the decision was difficult, but that the challenging reimbursement environment and escalating operating costs made it unsustainable... and another bites the dust. Even big business isn't immune to the challenges healthcare organizations face today: profitability, rising costs, access, infrastructure, regulation.... What do you think will happen to other retailers that have expanded into healthcare? https://lnkd.in/gF_U2Au7
Walmart Health Is Closing
corporate.walmart.com
To view or add a comment, sign in
-
Transformative Healthcare and Life Science Visionary Leader | Corporate Strategy, Corporate Development, Corporate Venture Capital, Growth Ventures, M&A and Portfolio Management | Affecting Positive Change
Several major retail healthcare providers are closing clinics and downsizing in a shift of strategy for the rapidly expanding retail health sector. Walgreens-backed VillageMD is closing about 60 clinics across non-strategic markets in 2024, while One Medical, recently acquired by Amazon, is closing six clinics and laying off 201 employees in early 2024. Walmart is also closing all 51 of its health clinics and shutting its virtual healthcare operations. These moves highlight the challenges retail health providers face in achieving profitability and sustainable growth models. As competition intensifies and economic pressures mount, companies are prioritizing strategic market focus, cost optimization, and operational efficiencies to position their retail health offerings for long-term success.
Walmart to shut all health clinics in US over lack of profitability
reuters.com
To view or add a comment, sign in
-
https://lnkd.in/eQYXcGmx Some shocking news from yesterday: Walmart is closing its healthcare centers located within its stores. These centers offered primary care, dental, and mental health services. Despite substantial investment, Walmart has decided to shut down operations. Challenges in attracting patients and achieving profitability contribute to the closures. The move underscores the difficulties faced by retail giants in the healthcare industry, especially around healthcare costs. It also highlights the challenge of providing affordable healthcare to families. At Healia, we’re proud to be helping companies bend the cost curve and provide affordable healthcare. The Total Care Option (TCO), is a solution that allows employers to pay for the health costs of families that enroll in their spouse’s plan. This limits the company’s financial exposure to the family’s out-of-pocket annual expenses and will save the company, on average, $10K per year per family enrolled in the TCO. Employees can use the account to pay for out-of-pocket health costs or premium contributions on their spouse or partner’s plan. This allows our clients to give an incredible new benefit to their employees while saving costs. The rare win/win during challenging times. If you’re an employer or broker/consultant and want to learn more, message us on LinkedIn to schedule a demo! 👍 #employeebenefits #healthcarecosts #healthbenefits #healthinsurance #planselection #benefitdecisionsupport #totalcareoption
Even Walmart thinks American healthcare is too expensive
theverge.com
To view or add a comment, sign in
-
I Help Humans Who Work in Healthcare Advance Their Career 💼 Build A Better Brand 💎 and Create A Legacy ⌛ Resume Expert ⭐ LinkedIn Optimizer 🚀 Interview Coach 🏅 Leadership Trainer 🎤 Relationship Builder 🛠️
My heart goes out to every healthcare professional, administrator, and executive in those clinics, pharmacies, and corporate offices who were told their “position was eliminated” since January. In case you didn’t hear, Walmart announced this week that they are shuttering all 51 in-store clinics and their telehealth services in the next 90 days. But they’re not the only company in healthcare or with a healthcare division that is making the difficult decision. Walgreens recently announced it would be closing 160 of its VillageMD clinics across the country. CVS Health is closing their remaining 300 pharmacies inside Target stores. Amazon announced it will be downsizing multiple corporate offices of its One Medical division and reducing its workforce in its own pharmacy. Even Optum, a UnitedHealth Group division, is considering closing down its virtual care services. DISCLAIMER: I worked for Walmart for 13 years so that one hurt hearing about the most. Being on the receiving end of that decision is devastating. It can be a roller-coaster of emotions from fear, anxiety, and depression. I know what that feels like AND I’ve been helping clients through the process both professionally and personally. If you’ve been recently impacted, I want you to know I’m here and I’m ready to help. At the same time, I know that delivering that news was difficult and stressful. Not only that, you’re still expected to motivate your team and ensure they continue operating at optimal-levels despite the devastation left in that decision’s wake. I know what that feels like too AND I’ve been helping clients in leadership positions control their emotions, manage their expectations, and ensure they and their teams perform well without attrition and resentment. If you’re struggling with moving forward today because of these recent corporate decisions, I want you to know I’m here and I’m ready to help. Corporate decisions aren’t easy for anyone. They never have been and they never will be. It’s how we handle ourselves and what steps we take next that matter.
Retailers retreat from health care delivery
axios.com
To view or add a comment, sign in
-
Walmart's Departure from Healthcare: Lessons in Commitment and Core Competencies The news of Walmart shuttering its Health Centers and Virtual Care operations has sparked discussions on different platforms. Despite impressive revenue and profit figures from the parent company, it appears that these weren't sufficient to maintain its venture into the healthcare realm. This move underscores a vital lesson: from my point of view thriving in healthcare necessitates more than just financial resources; it requires a profound grasp of the industry and steadfast dedication. Walmart isn't the only one facing this challenge; International & Local firms encountered similar outcomes. The healthcare sector is intricate and constantly evolving. While Walmart's intentions were commendable, their withdrawal serves as a poignant reminder that mere financial strength doesn't ensure success across all industries. Passion, expertise, and a concentrated focus on core competencies are indispensable for sustained viability. #healthcare #business #pivot #healthcareinnovation#Investment
Walmart Health Is Closing
corporate.walmart.com
To view or add a comment, sign in
-
Walmart's exit from healthcare is a cautionary tale of the complexities that mar our industry. The shutting of 51 health clinics comes at a time when 11,000 Americans age into Medicare every day, while costs are rising, and physicians remain in short supply. We may not initially appreciate outsiders nor disrupters, but the status quo must be challenged. A way forward? Health systems can adopt a more predictive model, backed by the digital awareness to manage how, when, and where care is accessed. Only then can we deliver the convenience that patients want, while reducing costs and maintaining a capacity of caregivers. The fact that Walmart, atop the Fortune 100, cannot make a buck in healthcare should be a wakeup call. The hurdle is not technology, but changing how we operate.
Healthcare Is a Frontier Not Even Walmart Could Conquer — And It’s Not Looking Great For Others Either - MedCity News
https://medcitynews.com
To view or add a comment, sign in
-
I waited as long as could before commented on the rash of departures from Big Retailers shutting down their various Primary Care investments. This is unfortunate as we need as much investment, innovation, and incremental experimentation to solve the very challenging problems of cost, quality, access, and outcomes impacting the very foundation of our nations health. However, when Primary Care is viewed as a secondary means to some other primary end, it’s going to be challenging to make it work. It’s a people business, with staffing being the largest component, which requires systems, processes, and technology to be smartly harnessed together–with a Service Design mentality–to ensure that each part contributes to a larger, systematic whole. Primary Care is best served “warm”, in the context of a trusted relationship that has been built over time. But critically, Primary Care needs a care model and service experience that also fits into a rational, sustainable, and viable business mode that can endure over time and varied economic circumstances. I would argue that this is one of the most critical, and probably most overlooked components of so many Primary Care initiatives–ensuring that there’s a sustainable business model. The business model must embed the concept of Advanced Primary Care being paid for by redirecting as needed (referral management) and rightsizing care (care management / focus on health and wellbeing) which by definition means reallocating how we spend the dollars. I always revert back to the landmark study on Primary Care, the National Academy of Engineering, Science, and Medicine (NAS) on Implementing High Quality Primary Care (“IHQPC”), which not only spoke to the chronic underinvestment in Primary Care and the serious economic and health implications which result; but more importantly, identified a way to implement the changes that are required to find a new path forward. Primary Care’s role is most definitely not to be the well-intentioned but loss-leading road to hell(th). One thing is for certain, the solution to the Primary Care challenges in the US will not be found on Aisle 3.
Not Awesome: Healthcare is No Longer Available on Aisle 3
http://scottshreeve.com
To view or add a comment, sign in
-
Founder @ ABIG Health | Healthcare Business Strategy I Healthcare Executive I Marketing and Communications I Accelerator
What does it say about our healthcare system when even the world’s largest retailer finds these ventures unprofitable? While we don't have all the details behind Walmart's decision, what we do know is telling: a retail giant couldn't align the numbers to make their healthcare services profitable or leverage them to drive sufficient business to their stores. If they can do it, how do independent physician groups do it? Walmart’s recent announcement to close its retail healthcare clinics marks a concerning trend in primary care. Alongside news of VillageMD closing their practices, it's evident that the business model underpinning healthcare, particularly primary and preventive care, is under severe strain. Revenues and Payor-mix, Inflation, and Expenses: CMS reimbursement rates for primary care and physician services have not kept pace with #inflation and expenses, placing immense pressure on these practices. Moreover, #revenue rates from payers are becoming ever more constrained, further squeezing the viability of such healthcare models. We must also explore how payor-mix and local economic levels play into practice viability. With rising operating expenses, practice operations become strained and unsustainable. Finally, when 51 clinics close, thousands of patients lose access to healthcare. Business decisions and economic drivers have real-world implications for healthcare access and outcomes. Based on Walmart's traditional store locations, these closures will impact many of our most vulnerable populations. More to come, but for now, watch this space. UNC Center for the Business of Health UNC Kenan-Flagler Business School Meroka ABIG Health #providers #patients #virtualhealth
Walmart Health's shutdown underscores major challenges for retail health 'disruptors'
fiercehealthcare.com
To view or add a comment, sign in
More from this author
-
Almost ALL that is wrong with our healthcare workplaces - revealed in ONE “staff meeting memo”!
Harry W Severance, MD 3mo -
Federal "Anti-Referral/Kickback" Laws - How they paradoxically end up Hurting Patient Care
Harry W Severance, MD 4mo -
“Healthcare - Does It Still Look Like a Smart Career Choice-??”
Harry W Severance, MD 7mo
💫 We Help Doctors, Clinicians & Hospitals, Tᴏ Simplify Their "𝐑𝐂𝐌". To Recover Late - Denied Payments. |🔹Unleash The Power Of Efficiency & Profitability With Us..💸🩺🥼
2moThe challenges of balancing profitability with quality healthcare delivery are complex and crucial. Your insights shed light on the nuances of the situation and remind us of the ethical considerations in this field.