February 26, 2020

“Attention on aisle seven, the doctor will see you now!” One doesn’t usually associate these two commonly understood and culturally engrained phrases in tandem. They don’t typically go together, at least not in our historical framework. Now, however, America’s biggest retailer is making a push into the healthcare space; and, with their unlimited resources and market omnipresence, a new synergy may be in the offing.  Walmart—the world’s largest chain of retail stores—is throwing its hat into the health delivery ring and appears ready to become a serious player in that sector. Who would’ve thought that in one place you could go pick up a few groceries, a pair of jeans and a knee replacement as well? Talk about your one-stop shopping!

Well, maybe this is not the exact way Walmart’s health initiative will play out, but they do intend to make deep inroads in the healthcare market, starting with education.

Doughnuts and Diplomas

Millions of Americans love to visit the bakery section of their local Walmart. But cookies and cakes are not all they’re serving up at the big box store these days. According to Becker’s Hospital Review, the retail giant is rolling out educational benefit programs to help its own employees prepare for the influx of thousands of new health-related jobs. Becker’s developed a list of five takeaways relative to Walmart’s education-first push into the healthcare market:

1. Beginning Sept. 24, 2019, Walmart’s 1.5 million workers in the U.S. were eligible to apply for one of seven bachelor’s degrees and two career diplomas in health-related fields through Live Better U—Walmart’s education benefit program. Employees pay only $1 a day for the duration of their college or career programs.
2. The seven bachelor’s degrees, which include health science and healthcare management, are offered through Purdue University Global, Southern New Hampshire University, Bellevue University and Wilmington University. The career diploma programs for pharmacy technicians and opticians are offered through Penn Foster.
3. The new programs will help train employees to fill healthcare jobs across Walmart and Sam’s Club, which include more than 5,000 retail pharmacies, 3,000 vision centers, 400 hearing centers and Walmart Health, a standalone health clinic in Dallas, GA., that opened in the fall of 2019.
4. Depending on the success of the standalone primary care clinic in Georgia, Walmart may open more Walmart Health clinics in the future. The retailer also plans to offer home health services and mobile units that offer specialty services, such as dermatology or women’s health, according to Business Insider.
5. “Our presence in thousands of communities gives us a unique opportunity to provide access to affordable healthcare to millions of people, and we need trained associates in order to do so,” Thomas Van Gilder, MD, CMO at Walmart, said in a press release. “As our health and wellness strategy and offerings continue to evolve, Live Better U will play a critical role in preparing our associates across the country for future work opportunities in the growing healthcare field.”

Beyond Pills and Eyeglasses

Yes, we’ve all seen the pharmacies and optometry sections of the big box stores, so there’s no surprise in seeing an emphasis on, or even expansion of, those services. But what Walmart is now experimenting with is truly revolutionary. The seeds that are now germinating in Georgia will yield a creation that could prove a boon to patients looking for ways to spend less on their care.  This assumes, of course, that Walmart infuses its fledgling clinic and potential spinoffs with the same low-cost philosophy that permeates its electronics, produce and other departments throughout all of its stores.

Regardless of what one thinks of Walmart, it has been an American winner. They have found ways to dominate markets, provide a large spectrum of services at a low price, and to stay strong in the midst of modern competitors, such as Amazon.  Now, their innovative and strategic thinkers have seized on a new potential revenue stream, and they are serious about its success. You don’t throw vast amounts of money into educating your employees for potential healthcare jobs unless you plan on staking a serious claim in that market.

A Threat to Hospitals?

So, what does all this mean for traditional health facilities and clinics? There is no indication at this point that a proliferation of Walmart Health centers across the country will offer serious competition to hospitals or surgery centers—at least in this initial iteration. It appears the vision and mission for now is to offer services that one might find at a local doctor’s office. However, there is nothing to prevent Walmart’s business plan from expanding to, say, imaging centers or lab services. If so, this will simply add to the current seepage of patient cases away from hospitals to stand-alone imaging and lab centers.

Only time will tell how all this will play out. Clearly, we’re dealing with a corporation with the wherewithal to make deep inroads in any market they so choose, to reap wherever they sow. For now, we need to keep our eyes on that little town in Georgia to see what the good earth might produce.

As always, should you have any questions, please reach out to us at info@miramedgs.com.