Walmart, the country’s biggest employer, is trying to redesign how U.S. health care works. It’s one of the few companies that has the power to be successful.
The retailer has been having early-stagetalks with Humana about toughening their partnership, which could also entail an acquisition of the insurer, starts familiar with the situation told CNBC. It also approached online apothecary start-up PillPack to scoop it up for under $1 billion.
These examinations are still early, but point to an ambitious vision in health care to bid services and potentially even take on risk for a large patient citizenry, including lower-income Americans and seniors.
Walmart’s moves come only just weeks after three megacompanies — Amazon, Berkshire Hathaway and J.P. Morgan — announced joint schemes to improve the health care experience for their 1.3 million workers.
Walmart employs 2.3 million people. And it touches millions of Americans utterly its online marketplace and retail stores, where it sells everything from bread to prescription medicines.
“Everyone in the country is talking about Amazon and its confederates changing the landscape of self-insured, large employers,” said Trevor Evaluate, CEO of the health services firm Oxeon Partners, who closely follows Walmart.
“But the firm that has the biggest opportunity to change landscape of health care, understood all the Americans that walk through the door every week, is Walmart.”
Walmart wage-earners and customers come from all demographic groups, including the lower-income inhabitants that accounts for the vast majority of the nation’s health costs.
This cut outs Walmart the potential to make a real difference.
“Walmart has access to the rations consumption, medical data and shopping cart of Americans from all societal classes, and not just the 1 percent,” said Julie Papanek, a health-focused investor at Canaan Pals.
To cater to these groups, Walmart has been ramping up its health gifts, from pharmacy to care delivery, all with a focus on affordability.
The assembly offers a list of prescription drugs that it sells for $4, no bond required. That service alone, the company claims, has saved its buyers more than $3 billion since it was launched more than a decade ago.
It has endeavoured to build on that over the years by offering access to medical distress — with mixed success. Last summer, it started offering lab probe services in some Florida and Texas locations. And it rolled out primary-care clinics that function inside Walmart stores.
For its employees with complex needs be fond of high-risk surgeries, the company has been adding facilities like Mayo Clinic to its network in a “Centers of Fineness” program.
One discrepancy, as Oxeon’s Price points out, is that Walmart’s calling relies on selling everything consumers want — including unhealthy memos like processed food and cigarettes. That could clash with a bigger inspire into health services. In contrast, CVS Health stopped selling cigarettes as as far as someone is concerned of its own transformation into health-care-centered company. Last year, CVS announced lay outs to acquire Aetna for $69 billion.
Still, as Walmart further ventures in its grocery business, there is opportunity to tie in its increasing focus on both labours.
Health experts agree that Walmart is the one to watch.
“Outside of specialty medications, Walmart is quietly the most affordable pharmacy in the country,” said Thomas Cassels, a salubrity researcher and consultant.
“And by contracting directly with providers across the mother country they are closing in on offering the most affordable medical services and events as well.”
Your move, Amazon.