Avi Rosenzweig’s Post

With Walmart’s recent announcement – closing all 51 of its retail primary care clinics – those of us in value-based care can breathe a sigh of relief. Just because a commerce giant can deliver goods to appease the needs of our instant consumerism doesn’t mean that they can successfully launch and maintain a sustainable healthcare delivery model. Those of us in the industry recognize that our system needs improvement; however, witnessing the closure of clinics like these highlights a healthcare reality: achieving positive outcomes requires patient and provider engagement, a collaborative partnership and commitment. Unfortunately, this announcement shows that once again those in most need of intervention will be the ones that suffer. Clearly mega retailers underestimated the complexities of health care delivery. Recognizing this lesson, we as healthcare leaders are called to serve our communities holistically and meet them where they are. We at CareNu are committed to the communities we serve, addressing healthcare disparities and inequities while continually innovating to make a difference and transform the current system. #CareNuCares #CareNuIsNow #ValueBasedCare #Innovation

👇 𝐇𝐞𝐚𝐥𝐭𝐡𝐜𝐚𝐫𝐞 𝐝𝐢𝐬𝐫𝐮𝐩𝐭𝐢𝐨𝐧 𝐢𝐬 𝐇𝐀𝐑𝐃 "Walmart will close all of its health-care clinics across the country, a stunning reversal of its plans to bring its low-priced reputation to the dentist and doctor’s office along with the grocery aisle." "Walmart believed it could use its massive financial scale and store base to offer convenient, low-cost services to patients in rural and underserved areas that lacked primary care options." "Walmart said it was a 'difficult decision,' but its health care push was not profitable for the company because of the 'challenging reimbursement environment and escalating operating costs.'" "Walmart’s announcement is also another sign of how challenging it is to disrupt and radically improve American health care." ☝💯 𝐘𝐄𝐒! 👇 𝐓𝐡𝐞 𝐛𝐨𝐭𝐭𝐨𝐦 𝐥𝐢𝐧𝐞: To see Walmart Health close everything at once is a genuine surprise. A slow down in growth wouldn't have surprised me. I constantly wondered about low profit margins and staffing costs every time I saw news about a new Walmart Health expansion. Primary care is essential, but it's also a challenging, low-profit business. That makes it a difficult fit for retailers who prefer high-margins and can tap into a readily available workforce. This might not be the last news like this given how challenging the space is proving to be for disruptors. #healthcare #retail #walmart #hcmktg #walmarthealth

Big changes in retail healthcare: Walmart announced the closure of 51 health centers across five states and their virtual care operations, reflecting a strategic shift in their healthcare services. This decision may signal a trend among large retailers reevaluating their healthcare offerings amidst evolving economic conditions and consumer preferences. It emphasizes the need for businesses to adapt and focus on areas with the most impact. How will this affect the landscape of retail healthcare? Read more about this development. https://lnkd.in/gjidRwth #Healthcare #BusinessStrategy #Walmart #RetailHealthcare

Several major retail healthcare providers are closing clinics and downsizing in a shift of strategy for the rapidly expanding retail health sector. Walgreens-backed VillageMD is closing about 60 clinics across non-strategic markets in 2024, while One Medical, recently acquired by Amazon, is closing six clinics and laying off 201 employees in early 2024. Walmart is also closing all 51 of its health clinics and shutting its virtual healthcare operations. These moves highlight the challenges retail health providers face in achieving profitability and sustainable growth models. As competition intensifies and economic pressures mount, companies are prioritizing strategic market focus, cost optimization, and operational efficiencies to position their retail health offerings for long-term success.

Today, Walmart Health announced plans to close all 51 of its health centers across 5 states, along with its telehealth business segment, Walmart Health Virtual Care.    Our three things that matter about this move:    1. Walmart Health cites a challenging reimbursement environment and rising operating costs as major contributing factors. Despite recent announcements to deepen its presence in Texas and expand into Arizona, Walmart Health has opted to discontinue its comprehensive array of integrated clinics, which have included primary care, dental, behavioral, and other ancillary capabilities. However, Walmart Health is not the only retail health company facing the daunting challenges of healthcare reimbursement and delivery pressures. As an example, Walgreens reported a $6B loss in its second fiscal quarter, largely attributed to its rapid expansion and investment in VillageMD. 2. Workforce challenges are another driving factor to consider in this decision. Many physician practices are still struggling from the ramifications of the pandemic, with more than 40% of practices not having enough doctors to meet patient needs. Walmart Health also attributed difficulties in recruiting healthcare professionals amidst the staffing crisis and tight labor market conditions as compounding factors in their decision. 3. Walmart Health is redirecting its focus towards its pharmacies and vision centers, marking a strategic pivot back to its longstanding core services. This shift underscores the company's commitment to leveraging its existing infrastructure while acknowledging the implications of its broader healthcare efforts on patients, healthcare providers, and the communities it has served. The company affirmed its dedication to continuity of care for the patients served, as well as providing support to affected providers and team members.   Given the broader trends shaping the industry, how will this decision impact not only retail health but also other organizations within the healthcare sector? What implications or solutions do these trends hold for the accessibility of healthcare services in rural and underserved communities? https://lnkd.in/erENXNMH #ro3llc #WalmartHealth #RetailHealth #Healthcare #PrimaryCare

Citing lack of profitability among other reasons, Walmart Health announces the closing of its 51 health centers and virtual care operations. This is tough news for many, many reasons. When I heard the announcement of these clinics coming online, I expected a fair amount of momentum, as it aligned with the adage of 'meeting people where they are' and the tagline of 'save money, live better'. Primary Care in the US is already a struggle. From the crisis in low numbers of HCPs/healthcare staff to the overall reimbursement landscape, for example. In areas around our country considered to be 'access deserts,' I surmised that Walmart Health Clinics had to have played a huge role in increasing access to care for those citizens who would or are otherwise left behind. I understand these are business decisions, but we can and should do better. I see many within my expanded LinkedIn network who have created similar posts are also receiving a barrage of commentary and opinions regarding this top news story. Ultimately, I believe there will be a void, an absence felt, in areas where these clinics served their communities across the five states they operated in. But make no mistake, there are others trying to thrive in the 'healthcare embedded in retail channels' space. So, where did Walmart go wrong? Moving forward, and more importantly, what lessons or pearls can we learn from Walmart's valiant attempt and subsequent exit? How can these be transformed into applied #strategies, to ensure the success and survival of new entrant healthcare solutions? #Walmart #WalmartHealth #HealthcareStrategies #PrimaryCare #Healthcare

Walmart shuttering all 51 health centers, citing lack of profitability https://lnkd.in/gWFTqxff From the article: "'Whatever the reason, if the largest company in the largest country in the world cannot – or won’t - operate primary care clinics profitably, it is ominous for the future of rural healthcare in America.'" #hospitals #clinics #healthcare #healthcarefinance

Walmart Health’s closing has been more emotionally charged for the healthcare community than other shutdowns and failures I’ve seen - what’s different? I think it’s because #healthcare 4.0 has long been looking for a tangible win in primary care innovation - something that could finally break the inflationary “sick care” #finance cycle - and #Walmart Health seemed to be doing so well. Just in March they announced an expansion of Walmart Health. They appeared as if they had found success where others haven’t. There’s a definite sting I feel when hearing Walmart cite all of the typical reasons for abandoning #primarycare that independent practitioners, community clinics, and #health systems have also fallen victim, whether it be abysmal reimbursements or burnout and talent management. Those who work in or around healthcare can feel these pains every day and we continue to hope for true, cycle-breaking #innovation because we see the pain and distress that often accompany access to care in the current environment. While I feel for the employees and patients of Walmart Health, I do remain optimistic for innovation in primary care delivery. This is a system very nearly (if not already) at its breaking point with some of the best mind’s working to figure it out. So, it may not be Walmart Health, but change in primary care is still coming. https://lnkd.in/emaqK7Dw

Healthcare is expensive to run! Walmart to shut all health clinics in US over lack of profitability. The most surprising aspect of Walmart's decision is the abrupt reversal from their ambitious expansion plans announced just last year. They had aimed to nearly double the number of health centers by 2024, positioning themselves as a key player in providing accessible healthcare. This sudden shutdown of all their health clinics and virtual healthcare operations contrasts sharply with their previous strategy, making it an unexpected and significant shift in their business direction. The key question is: What specific challenges in the healthcare market did Walmart encounter that led to the decision to close all 51 of its health clinics and end its virtual healthcare operations, despite the initial optimistic expansion plans? Full article on Reuters written by Siddharth Cavale & Granth Vanaik: https://lnkd.in/g-GHNkFp #healthcare #expensive #investing #economy #USA

Today, Walmart Health announced plans to close Walmart Health and Walmart Health Virtual Care. Our rule of three, LLC team has been tracking the happenings with our “Big Four” in healthcare (Amazon, CVS Health, Walgreens, and Walmart Health) for some time, and this certainly represents a major shift in strategy, as each of their competitors struggle similarly in bringing retail-focused primary care capabilities to market in a sustainable way. Walmart Health cited several compounding factors in their decision. With a challenging reimbursement environment, rising operating costs, and continued workforce challenges stemming from the pandemic, Walmart Health and Walmart Health Virtual Care were deemed unsustainable, particularly relative to the larger company strategy. The retail giant is now shifting its focus to the core services it has offered for decades, with a continued emphasis on health and wellness initiatives that its pharmacies and vision centers can realize. Simultaneously, the company remains committed to ensuring continuity of care for the patients impacted and supporting all affected providers and team members in the interim. This is a tough day and announcement to grapple with, as David Carmouche, MD pointed out in his post earlier. The promise of retail-driven primary care models is immense, or said differently, the transformational opportunity in the industry Walmart Health was attempting to deliver against felt very compelling. Uniquely, our rule of three, LLC team has had an opportunity to serve this fantastic organization, and it is with sadness that we post today, with so many amazing team members and communities impacted. The opportunity to change our industry for the better no doubt created a “Walmart Effect” that rippled through so many other organizations, bringing their distinctive brand of relentless consumer focus to an industry in desperate need of it. Our hope is that the opportunity to learn from Walmart, as so many have done in other industries, remains strong, focusing on an experience that matters, a cost structure that’s affordable, and a team that is as committed to each other as they are to the patients/communities served. This industry needs transformation, and it needs bold, focused organizations to lead that change. We hope this is inspiration to pick up the baton, not end the race. Although we won’t be able to list them all, we have interacted with so many fantastic leaders across Walmart Health, who represent such a strong team, who include but are certainly not limited to: David Carmouche, MD, Ken Silverstein, MD, MBA, Angela Cosby, Erica Mobley, Courtney P., Shannon Borkowski, Pritesh Gandhi, Bill Goodwin, MBA, Emily Aaronson, Jon Freshman, Julie Kass, Haresh Desai, Claude Pirtle, MD, MS, FACP, FAMIA, Janine Lin, Chris Rodino, Neal Simmons, Kelsey Coyle, JD, Keith Tanski , Amanda Deegan   #WalmartHealth #HealthcareTransformation #PrimaryCare #RetailHealth #RetailHealthcare  #ro3llc