Walmart Health, the healthcare arm of retail giant Walmart, is intensifying its efforts to capture more business from Medicare Advantage plans as it prepares to expand its in-store clinics throughout the United States.
Walmart Health's expansion plans place it in direct competition with other retailers seeking a portion of the primary care market. Amazon, which recently acquired concierge medical provider One Medical for $18 per share in an all-cash transaction with a value of roughly $3.9 billion, is one of Walmart's chief competitors.
A Growing Primary Health Market
Walgreens, Dollar General, and Albertson's are among the other competitors. CVS Health is also acquiring Oak Street Health, a provider specializing in Medicare populations, for $10.6 billion.
Recent projections provided by Statista indicate that the industry's revenue will reach a staggering $17.03 billion by 2023. In addition, the industry is anticipated to expand by 12.90% per year between 2023 and 2027, resulting in a market volume of $27.67 billion by the end of 2027.
This growth is primarily the result of a rise in the number of users, which is expected to reach 84.4 million by 2027. In addition, the user penetration rate is anticipated to increase from 21.7% in 2023 to 24.3% in 2027. This will result in a greater demand for health care services, as more people will have access to them.
Walmart Health Expansion
An Axios report tells us that the company announced plans to add 28 new health clinics to its network by 2024, effectively doubling its current clinic footprint.
The clinics provide a variety of primary care services, such as behavioral health, vision screenings, and dental care.
Read Also: University of Sussex Researchers Develop Fitness & Healthcare Monitoring Technology Using Seaweed
Walmart Health has identified four locations for new clinics, including Dallas, Houston, Phoenix, and Kansas City, Missouri.
Walmart Health is looking to use its partnership with UnitedHealth Group to deliver care to Medicare Advantage plan senior beneficiaries. This year, Medicare Advantage plans are projected to serve more than 50 percent of eligible beneficiaries, which makes them particularly lucrative for payers.
Walmart Health's expansion strategy targets areas with a substantial presence and projected local population growth. According to Walmart's senior vice president of omnichannel care, David Carmouche, the company focuses on markets with demographic growth among those aged 64 and older.
Scaling Back 2029 Target
Walmart Health has reportedly scaled back its target of opening 4,000 clinics by 2029 despite its bold expansion plans. According to Business Insider, in 2021, Walmart opened just 20 clinics.
Axios also cites that the company has had some high-profile departures, including Cheryl Pegus, former Walmart executive vice president of Health and Wellness, and Marcus Osborne, former senior vice president of Walmart Health.
In response to patient feedback, Walmart Health has also reduced the size of its clinics to approximately 6,000 square feet and integrated Epic's electronic health record system.
As Walmart Health expands its clinic network and develops its healthcare offerings, it is likely to capture a larger share of the primary care market as it draws more patients.
Stay posted here at Tech Times.
Related Article: Walmart Wants to Propose a $3.1 Billion Opioid Lawsuit Settlement
