Business

Wal-Mart Aims to Become Largest Provider of Primary Healthcare Services

“Wal-Mart wants to be your doctor,” writes Julie Appleby and Sarah Varney of NPR.

Well, perhaps their aspirations aren’t that great. It’s more likely that Wal-Mart sees an opportunity in the market and they want in on it.

In a request sent to the their partners, the retail giant writes that they intend “to build a national, integrated, low-cost primary care healthcare platform that will provide preventative and chronic care services that are currently out of reach for millions of Americans.”

Based on their 14-page request, it appears that Wal-Mart is looking to offer medical services that range from the management of diabetes to HIV infections, reports NPR.

On Tuesday, Wal-Mart spokeswoman Tara Raddohl confirmed the proposal.

But where did this marketplace opportunity come from and why has Wal-Mart suddenly become interested in heavily stepping up its investment in the health care industry?

It’s called the Patient Protection and Affordable Care Act.

When the federal health law takes effect in 2014, there will be millions of Americans expecting to have government or private health insurance. Obviously, demand for care and medicine will skyrocket.

Wal-Mart intends to meet that demand.

“We have a massive primary care problem that will be made worse by health reform,” says Ian Morrison, a Menlo Park, Calif.-based health-care consultant. “Anyone who has a plausible idea on how to solve this should be allowed to play.”

Wal-Mart’s in-store medical clinics could also be part of a wider effort by doctors and hospitals to “streamline care and lower costs.”

“Such collaborations [between doctors and hospitals], known as accountable care organizations, might contract with in-store medical clinics,” Paul Howard, a senior fellow with the Manhattan Institute for Policy Research, confirmed in the NPR report.

“In health care, Wal-Mart has already flexed its super-size muscles when it comes to prescription drugs,” says Ed Kaplan, a senior vice president at The Segal Company, an HR benefits firm.

Kaplan went on to say that Wal-Mart could “bring its massive purchasing power to medical supplies, diabetes test strips, just about anything.”

Indeed, their efforts to collaborate with others on health care could actually help lower costs for some patients and increase access to primary care services.

Furthermore, with their impressive shipping network, Wal-Mart may be able to bring an element to the health care industry that could be very lucrative for both itself and its partners.

Nevertheless, their approach has detractors.

Glen Stream, president of the American Academy of Family Physicians, says Wal-Mart’s proposal takes health care in the wrong direction by further fragmenting care. The argument is that patients should seek care from physicians who are familiar with the patient and the history of their health.

Aside from the philosophy of the doctor/patient relationship, there are critics who believe Wal-Mart’s newest initiative just won’t work.

“Maybe Wal-Mart can deliver a lot of this stuff more cheaply because it is an expert at doing this with other types of widgets, but health care is not a widget and managing individual human beings is not nearly as simple as selling commercial products to consumers,” says Ann O’Malley, a physician and senior health researcher at the Center for Studying Health System Change.

Currently, Wal-Mart has a number of in-store clinics but it has yet to figure out how to streamline its clinic business model.

NPR explains the current situation:

Until recently, Wal-Mart was the nation’s leader in opening [in-store] clinics, but has dropped to third place with about 140 of them, well behind CVS Caremark‘s nearly 550 Minute Clinics and Walgreens’ 355 Take Care clinics, according to data tracked by Tom Charland, CEO of Merchant Medicine, a Minnesota-based research and consulting firm.

About 1,300 store-based clinics are open nationwide, he says.

In 2007, Wal-Mart CEO Lee Scott announced the firm would open 400 clinics by 2010.

But early efforts backed by venture capital money faltered and the firm failed to reach that number . . . Wal-Mart then switched strategies and began leasing space to hospital systems, and the clinics began to grow again.

Still, last month, the firm appeared to be struggling: Wal-Mart opened three in-store clinics, but closed 10 . . .

“This is an industry where people haven’t figured out how to make money,” said Tom Charland. “My guess is the whole purpose of (Wal-Mart’s) request for information is to find someone to help them because they’ve not been able to pull it off.”

(h/t Newser)

Comments (68)

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  • rousha50
    Posted on November 9, 2011 at 11:16pm

    I have been in some nasty Walmarts and the thought of going there for any of my healthcare needs?? Well, it just is not going to happen. Just look at some of the photos that go around the internet with pictures of their “special” shoppers. YUCK!!!

    Report Post »  
    • pamela kay
      Posted on November 10, 2011 at 2:22am

      I am having a hard time with this one. Please tell me what kind of Dr. would want to set up in a Walmart? There is a clinic in a local store close by me in Ohio. I peeked in as I walked by. Not to many English speaking patients in that itty bitty waiting room. It was funny because they actually had someone stand in front of their cubical and try to get people to come in and try their services. Really? It made me shiver and not want to come back. It is bad enough that there are sick people everywhere you shop but to know that they are coming in purposely because they need treatment for whatever creeps me out. I have seen the videos and I think that thee majority of them were filmed at this store. Oooooooo, seriously, I think that they were. The first of the month is the worst. Once I had to run into the store around midnight to pick up some cold medicine, NEVER again.

      Report Post » pamela kay  
    • charleyrocks
      Posted on November 10, 2011 at 4:59am

      My goodness I remember when they killed many dogs and cats with their food, why would I trust my med’s coming out of china? What fillers do they use in their pills? The same as what they put in the dog food? They can‘t be trusted period so folks don’t give in to them.

      Report Post » charleyrocks  
    • smackdown33
      Posted on November 10, 2011 at 6:37am

      This is what you get when you allowed the government to control your healthcare. You were all warned back in the early 1960′s. You didn’t listen then, and you are not listening now. You deserve what you get, and it’s going to get a whole lot worse.

      Report Post »  
    • JRook
      Posted on November 10, 2011 at 8:19am

      Interesting concept, but then again most of their employees won’t be able to utilize the service.

      Report Post »  
    • jb.kibs
      Posted on November 10, 2011 at 11:46am

      LOL @ Walmart… they are full of fail. you get what you pay for.

      Report Post »  
    • Vechorik
      Posted on November 10, 2011 at 8:01pm

      One look at a WalMart bathroom makes me wonder about this.
      Now I know why WalMart people courted Obama so much at the White House.

      Plus, I just learned this that I didn’t realize before:
      ROMNEY’S 2012 PLAN CUTS MEDICARE–Ron Paul’s plan cuts $1 trillion the first year and it balances the budget in 3 years. The plan cuts spending by ending the costly unconstitutional foreign wars, and cuts foreign welfare, corporate welfare, and overgrown federal bureaucracy. These cuts are made so that those who are dependent on domestic spending programs such as Medicare aren’t endangered through a sudden change in benefits. Romney’s plan cuts Medicare, on which many elderly Americans rely.

      Report Post »  
  • UnreconstructedLibertarian
    Posted on November 9, 2011 at 11:02pm

    I did business with Wal-Mart back in the 90′s. At that time Sam gave the individual store managers authority to make local purchases, if the price was competitive. I supplied vegetables to 7 stores upon the agreement of those managers. It was good for me, them, and the consumer.

    Sam died

    Within a year I was contacted by Bentonville, wanting not only individual HPC codes on each item, but itemized profit statements on each enterprize. Also, that I’d need to grow my business 100 fold to supply the area east of the Mississippi River. I told them to kiss my rebel posterior. I would not reveal my profit margins – as they were variable from year to year based on growing conditions.

    My buddy, who also supplied them produce – took the bait. They immediately renegotiated his contract the next year to elimnate his reported profit margin. Within two years – he was Ch 7 broke.

    This not only happened to my buddy, but Murray Mfg. American Greetings, Schwinn bicycles. The list goes on and on and on.

    Wal-Mart has NOT raised the standard of millions of Americans. It HAS induced them to buy alot of crap whose manufacture has been summarily exported outside the country. That will eventually dry up as their predatory retailing exhausts suppliers willing to sacrifice themselves and consumers find themselves without an income source.

    Enjoy
    http://www.youtube.com/watch?v=pKv6RcXa2UI

    Report Post » UnreconstructedLibertarian  
    • beh0003
      Posted on November 10, 2011 at 11:08am

      Great post. I’m pretty sure I remember hearing something about Snapper, the lawn mower manufacturer as well. Walmart wanted to pay even less than they were already paying, and Snapper finally got fed up, and said screw you to Walmart. Haven’t seen a Snapper in Walmart since. I always thought of Snapper as a premium brand anyway. I have to admit, every once in a while, I will go in Walmart for an emergency if nothing else is open (which is usually around 3am), other than that, NEVER. I still love my local ACE hardware store!

      Report Post » beh0003  
  • Conservative Warrior Princess
    Posted on November 9, 2011 at 10:57pm

    Don’t want greatvalue healthcare, thanks.

    Report Post » Conservative Warrior Princess  
  • FreeWilly
    Posted on November 9, 2011 at 10:55pm

    As a distributor that services two Walmarts in my area. I would have to say that if they run this new venture like they run their stores, there would only one word to describe how this would turn out……DISASTER!!!!

    Report Post »  
  • YoungBloodNews
    Posted on November 9, 2011 at 10:47pm

    Wow BLAZErs

    This story was all over HA like 8 hours ago, now your catching on… As I have said before, fire your story finder PLEASE.

    And to quote the best poster at HA:

    Mike Judge was a prophet!

    Report Post » YoungBloodNews  
  • dealer@678
    Posted on November 9, 2011 at 10:39pm

    I went in for a flu shot at Sams and the dam mexican pointed me to the tire section. Yea thats my health provider of choice

    Report Post »  
    • blue_sky
      Posted on November 9, 2011 at 10:51pm

      Also the danger is that Wall-Mart has a big lobbying arm. If government pump money in Wall Mart it becomes “too big to fail.” We have to be open for them to try, but government should not give them any regulation breaks (unless equally to all private companies) or money.

      Report Post »  
  • peterpiper
    Posted on November 9, 2011 at 10:06pm

    “Aside from the philosophy of the doctor/patient relationship”

    The doctors are forced to have a doctor/insurance company relationship, at least with the insurance I have. It is not always obvious, but if you pay attention it is clear the Insurance companies are making our care decisions.

    Maybe Walmart can provide ” low-cost primary care healthcare platform that will provide preventative and chronic care services that are currently out of reach for millions of Americans.”

    Is this change in the law going to allow Open Market competition? Or would walmart have to register in each state?

    Report Post » peterpiper  
    • dealer@678
      Posted on November 9, 2011 at 10:34pm

      Do the doctors speak freakin english. At Sams Club in Dallas they dont

      Report Post »  
  • TheePolitinator
    Posted on November 9, 2011 at 9:57pm

    Yup same here I now only shop at small local stores, mom and pop stores and no wally world. I don’t care if they are the only ones on planet earth with what I need I will go without!! Its time to say f’em all!!

    Report Post » TheePolitinator  
    • Marci
      Posted on November 9, 2011 at 10:01pm

      This will not work for them, but I say let them try. If they fail, they shut them down. I used to work for the home office, they are good at a lot of things, but I don’t think this will be one of them. Case in point, their vision centers suck. The doctors who staff them often are there just as a stepping stone. Some of them are fantastic, but they don’t stay there long. And the employees of them tend to be of the same caliber as a cashier, and the service is severely lacking.

      Report Post » Marci  
  • Danola
    Posted on November 9, 2011 at 9:54pm

    Walmart is lobbying for Congress to tax the internet for everyone. They are claiming that it is unfair to them. I used to love Wally World, but I have changed my shopping habits!

    Report Post »  
  • BONETRAUMA
    Posted on November 9, 2011 at 9:53pm

    i want a china doctor, china butt wipe, and a little china doll!

    Report Post »  
  • last frontier
    Posted on November 9, 2011 at 9:50pm

    Almost every thing that Walmart sells is second quality that’s why you always see the cast of Jerry Springer shopping there.

    Report Post » last frontier  
  • South Philly Boy
    Posted on November 9, 2011 at 9:46pm

    Last time I went to WalMart I needed some help and
    two of the employees I asked DID NOT SPEAK ENGLISH.

    Report Post » South Philly Boy  
    • TheePolitinator
      Posted on November 9, 2011 at 9:59pm

      Yup and I swear to God they only hire people with a sever mental handicap. No offense to the mentally challenged but drooling on your register should not be considered a hiring point.

      Report Post » TheePolitinator  
    • william.wadsworth
      Posted on November 9, 2011 at 10:32pm

      Plus the fact that Walmart seems to attract all of the wierdos, rednecks, and generally odd people of our society.

      Report Post »  
    • SHOWMESTATEGUY
      Posted on November 9, 2011 at 10:42pm

      @ William——-

      I’m surprised you would say that. I’m sure I saw your mom and dad in Wal Mart last Saturday.

      Report Post »  
  • Dinkiecb
    Posted on November 9, 2011 at 9:34pm

    and why in the world would i want to go to walmart for my healthcare? let’s see .. drive over to the walmart drop my car off to get the oil change, get medical care, grocery shoping, stop at the walmart pharmacy to pick up my perscriptions, go get my car and go home..seems simple enough..yeah yeah … that’s it .. i really want to spend my whole day at walmart! NOT

    Report Post »  
  • BloodSweatandTears
    Posted on November 9, 2011 at 9:31pm

    It goes that if you have a billion dollars you can steer the economy…There’s only so many families with that much clout.

    Report Post »  
  • SERUM
    Posted on November 9, 2011 at 9:30pm

    I’m already paranoid of sick people at Walmart. In the future, I’ll be taking my personal shopping cart with nbc mask! Kid you not!

    Report Post »  
    • SERUM
      Posted on November 9, 2011 at 9:46pm

      And if anybody stops me…face full of Lysol! Lol!

      Report Post »  
  • dontbotherme
    Posted on November 9, 2011 at 9:29pm

    Walmart has really made an effort to help the everyday citizen. Prescriptions that would normally cost well over $100.00 are $4.00 to $20.00ish. If they want to use our free market system to provide affordable health insurance (instead of a forced costly government plan that is already failing) I say go for it! This is what America is. I think a lot of the negative voices concerning this company are due to the fact that they are non-union. Simple.

    Report Post »  
    • dontbotherme
      Posted on November 9, 2011 at 9:43pm

      Ok. I totally misread this report. I would never go to Walmart for medical care. This is what happens when I am listening to the debate, reading & trying to think & type at the same time.

      Report Post »  
  • Smokey_Bojangles
    Posted on November 9, 2011 at 9:23pm

    You would have to go to China for treatment in a sweat shop.

    Report Post » Smokey_Bojangles  
  • SIXFRIGATES
    Posted on November 9, 2011 at 9:23pm

    Wal-Mart is the dark side of capitalism… They make enough money everyday before 8am everyday to buy land, pay for a store to be built and stock said store. They place a store and HUNDREDS of people LOSE JOBS. Those people who were making between $40,000 – $150,000 now can take jobs at just over minimum wage or try to rebuild somewhere else…. which most likely already has a Wal-Mart within 25 minutes. THE WALTON FAMILY DOESN’T WORK yet each is worth $5 Billion. And now, as I’ve been telling everyone they are on the precipice of being the only place to go for healthcare. We will ALL be working at Wal-Mart just so we can afford to buy things at Wal-Mart within a decade. They will devour each segment of every market in due time. Auto repair, healthcare, FOOD, CLOTHES, gasoline, banking (they already have their own bank, it’s themselves). Wal-Mart is a monopoly and there needs to be limits on the number of stores and they must double their salaries at a minimum.

    Report Post » SIXFRIGATES  
  • DiamondDog
    Posted on November 9, 2011 at 9:18pm

    All lab work and surgery will be done in China. In store exams will be done by illegals.

    Report Post »  
  • nohussein
    Posted on November 9, 2011 at 9:13pm

    walmart beat the hussein, priceless.

    Report Post » nohussein  
    • restorehope
      Posted on November 9, 2011 at 9:29pm

      You really don’t think that big government is going to let Walmart compete with Obamacare, do you? They will come up with some restrictive laws that make it impossible to offer better coverage than Obamacare. By the way, I think Obamacare should really be referred to as “Obamadoesnotcare”, otherwise he would not have forced this evil program down our throats with no remorse at all.

      Report Post »  
  • TRILO
    Posted on November 9, 2011 at 9:12pm

    It will be a cold day in hell before I use any service that Walmart provides. Ever since they became partners with the Dept of Homeland Security in their “See Something Say Something” campaign and became partners with Michelle Obama on her fat crusade I will not step foot in any Walmart store. Period!!!

    I shop at my local grocery stores and they are never out of what I need and I get much better service.

    Report Post » TRILO  
  • RightPolitically
    Posted on November 9, 2011 at 9:10pm

    The detractors of this idea are likely people affiliated with the competition. As to the argument that patients need to be familiar with their doctors which might not occur in the clinic model, okay fine. But what is better, nothing or SOMETHING?

    Report Post » RightPolitically  
  • GBMBulletsSKNRD
    Posted on November 9, 2011 at 9:08pm

    DAHART, your a dumba$$.

    You go get em Wal-Mart.

    Report Post »  
  • On The Bayou
    Posted on November 9, 2011 at 9:04pm

    Hell give em a shot at it, they can`t do any worse than we have now.

    Report Post » On The Bayou  
    • CatB
      Posted on November 9, 2011 at 9:28pm

      I’m game also .. I only have “major medical” which means I must be VERY sick before they pay for anything .. it is all I can afford to buy .. this could work even if we can REPEAL OBAMACARE .. which is my ultimate goal (premiums are increasing at the fastest rate I have EVER seen since Obamacare was proposed and forced onto the citizens) … my dog gets better treatment for less cost than I do!

      Report Post »  
  • Dahart
    Posted on November 9, 2011 at 8:56pm

    I can stand Wal-Mart now why in the he$$ would buy my insurance form them

    Report Post » Dahart  
    • Stoic one
      Posted on November 9, 2011 at 9:05pm

      Walmart has made life more affordable for millions. There is something to be said for that. Healthcare in this country is in trouble. If Walmart wants to give it a try .-.-.-. OK. If it is too expensive or of poor quality it will die

      Report Post » Stoic one  
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