Walmart is a savvy observer of national trends. For example, it recently noted two parallel and prominent developments: First, the health care market has expanded, because the Affordable Care Act has mandated that more consumers have access to insurance and health care services. Second, rural areas continue to suffer from an expanding, critical shortage of doctors and health care providers. Adding these observations together, Walmart recognized the potential for its latest new offering: health care clinics.
In several states, Walmart stores have begun to feature primary care health clinics, staffed by at least one supervising physician, nurse practitioners, and medical assistants. These clinics offer basic medical services but also promise the ability to treat more chronic or serious medical concerns. In this sense, they differ from the acute care clinics that populate additional Walmarts, as well as Walgreens and CVS stores.
Visitors to the primary care clinics pay $40 per visit; many of them have no other primary care physician. Especially in rural locations, the local Walmart is far more accessible than a comprehensive or supportive health care system. However, some observers express concerns that a retail store cannot effectively deal with chronic health problems such as diabetes that often entail complex side effects and issues.
In addition to the broader $1.7 billion health care market, Walmart has a large target market of potential customers close at hand: its employees. Walmart employees pay only $4 per visit. Approximately half of its 1.1 million staffers receive their health care through Walmart’s system.
For Walmart, the primary care clinics offer great promise. Primarily, the retail giant hopes to grow even larger by expanding its offerings and tapping into the growing health care market. Furthermore, if more people visit Walmart stores because they need to see a doctor, more people will be walking through the aisles, increasing the chances that they will make additional purchases. Receiving care at Walmart also increases the likelihood that patients fill their prescriptions at the Walmart pharmacy under the same roof.
Discussion Questions:
- How are different stakeholders affected by Walmart’s entry into primary healthcare services?
- Are there any potential problems associated with this move?
Source: Rachel Abrams, The New York Times, August 7, 2014