Walmart: A Rural Health Care Panacea?
It can’t be denied that external market disruption is influencing change in the health care ecosystem.
One only has to do a quick review of the headlines to see mega deals popping up including CVS/Aetna and Cigna/Express Scripts. There are also newcomers like Amazon, JPMorgan Chase, and Berkshire Hathaway, which continue to keep us curious. One potential vertical partnership that took to the interweb earlier this year was that of Walmart and Humana, as they began evaluating each other as potential suitors. This intriguing potential partnership has me pondering the question – could such a relationship position Walmart as a type of rural health panacea?
The rural placement of Walmarts across the country has long been controversial, often seen as a capitalist conglomerate that powers its way into towns with ultra-low prices, ultimately resulting in a retail desert. To others, it means jobs and consumer goods at a fair price – with a host of shopping options “made in America.” Rachel Monroe eloquently outlines how Walmart has become the center of rural towns across America in her article, “How Walmart Became the Town Square in Rural America”. Bottom line is that in rural America, Walmart may be the only source of groceries and other household supplies – for a significant rural radius.
Consider the Super Walmart – a purveyor of all things shopping and beyond. Super Walmarts offer common household items, groceries, onsite clinics, optical centers, pharmacies with DME supplies and often include a Subway or similar chain restaurant, positioning them as a day trip for many. The retail data Walmart is collecting is powerful and vast, and when coupled with the data of a health plan such as Humana – or another large insurer – could unearth social determinant insights with profound impact if actioned accordingly. Can we envision a future where Walmart is able to leverage the power of such data, partnering with health plans and local health care organizations to capitalize on the engaged consumer – delivering patient-centered wellness and health care while you shop? Is it also possible that brand loyal Walmart shoppers will choose integrated care in this way?
Just last month Walmart inked a deal with Anthem to expand access in 2019 to include over the counter drugs and supplies for Medicare Advantage patients at reduced costs. Beginning in 2019, the Bipartisan Budget Act of 2018 will allow for expansion of “primarily health related benefits … beyond a specific medical condition to include social supports” with Medicare Advantage plans. This could include benefits like air conditioners for people with asthma, healthy groceries, home-delivered meals, assistance with housing and non-skilled home-care services – services closely aligned with addressing the social determinant of health and ultimately, all available at Walmart.
So to ponder this question again, can we envision a future where Walmart is partnered with health plans and local health care organizations to capitalize on the engaged consumer – delivering patient-centered wellness and health care while you shop?
I believe the answer is yes.
Rural America is often poorer, sicker, and older than other settings and access to care can be hampered by long drives, lack of transportation alternatives, and a shortage of certain specialties. Is it possible that a Walmart with new vertical partnerships could become a medical home or neighborhood? Consider a retail clinic backed with intelligent data, partnered with local resources to deliver whole person care; care that is catered to a patient’s specific needs. Enter telehealth supported by commercial broadband, groceries hand-picked to manage specific conditions, medical supplies and DME available while you wait, diabetic education and training, facilitated advance care planning, access to primary care, injections and immunizations, integrated mental health and other specialties – all in a day’s trip to Walmart.
Perhaps this is the beginning of something bigger in rural America – a disruptor with real potential to drive the Triple Aim – lowering costs, engaging patients and their care givers, and delivering better outcomes – perhaps it IS the making of a rural health panacea.
Penny Osmon Bahr is an executive level health care operations professional that works to develop business strategy, navigate regulatory impact, and execute improvement across the health care ecosystem. She brings over 20 years of industry experience and has worked across the continuum with independent physicians practices, accountable care organizations, health systems, and health plans. Penny has strong business acumen and is a thought leader with exceptional communication. She is professionally respected for her broad industry knowledge, leadership, and her ability to convey complex information across all stakeholders.
Comments are closed.