New Competitor Advancing in Healthcare Walmart - Health Clinics and Clinical Trials
By Barbara C. Carey and Mike McCall, RN
I grew up in a neighborhood grocery store. My parents earned enough income for us to be comfortable. We went to Catholic schools, had vacations, a large house and boating was our hobby. My parents paid for my college education as well as my brothers. They were generous to their church and charities. I remember the first large chain grocery to come to our southern town—Piggly Wiggly. Their prices were better, and their store was larger. My parents closed the store when their children were grown, and they could live on their income. Twenty years later very few neighborhood groceries exist.
Grocery shoppers go to Walmart, Sam’s, Kroger, Super One, Albertsons', Publix, H-E-B and similar stores.
I see the same pattern emerging in healthcare. Walmart is focused on being a one-stop shop for healthcare with affordable prices whether you have insurance or not. They recently built a clinic next to a large Walmart store in Dallas. It is a primary care clinic with an urgent care clinic. It also offers lab, x-ray, EKG testing, dental, vision and counseling services. The nutritionist takes her clients next door to the Walmart store to pick out healthy food
items. Walmart also offers their associates $1.00 per day to enter a health care field for a BA, BS or a shorter Diploma course.
Walmart recognizes the scope of patients with chronic diseases and has acquired Chicago based HabitNu who trains Walmart workers at two of its stores to teach patients about disease prevention, set weight management goals and provide support for a healthy lifestyle.
On October 11, 2022, Walmart announced the launch of the Walmart Healthcare Research Institute. It will focus on inclusion in clinical studies on treatments for chronic diseases. The groups they want to include are older people, rural residents, women and minority populations. Their clinical tool, My Health Journey will give patients information about clinical trials and how to participate.
Walmart is in the initial stages of its drive into healthcare, but it brings many strengths:
High level of analytical sophistication and logistics Nationwide reach – cities and rural areas
Deep investment pockets
Ability to form strong partnerships and to acquire providers and other firms Millions of customers who could be potential patients
Pricing advantages like their $4 generic medication program
Significant advertising and marketing budgets
1.7 million employees in the U.S. who can use their services
Community hospitals and even larger hospital systems will be impacted in the future by Walmart, CVS, Amazon, and United Healthcare who just bought LHC Group, one of the largest home care companies in the US. Many large players are entering the primary care business as well as other healthcare industry segments. This is a significant development since primary care physicians are the lifeline of hospital referrals.
Strategically, now is the time to drive change in your institutions to compete with future strong competitors. Walmart will offer convenience, affordable pricing and many services in one place. They have not yet built a hospital. Do you think they will not enter the hospital market?
How can you position your hospital for this competitive future?
What steps do leaders need to take now to maintain and grow their patients? Maintain and recruit providers?
Build state of the art facilities that can compete in image, technology and efficiency?
How can you make your services more “user friendly?”
In Summary...
There are opportunities NOW for smart leaders to build the alternative to "big box" healthcare...
Think about what happened to neighborhood groceries and other local retail businesses when large institutional players came into towns and cities. We are at a crossroads moment. Get advice, think long term and be the hospital that serves future generations.
TCI believes that strategic planning and marketing should focus on long-term goals that can drive change in the short-term.
We are able to consult with our clients to bring a level of thinking that can drive change and innovation and help them to compete.
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