/ en Sat, 26 Apr 2025 14:50:54 -0500 Tue, 04 Mar 25 06:00:00 -0600 /aha-center-health-innovation-market-scan/2025-03-04-emory-healthcare-network-partnership-builds-new-paths-access <div class="container"><div class="row"><div class="col-md-8"><img src="/sites/default/files/inline-images/Emory-%20Healthcare-Network-Partnership-Builds-New-Paths-to-Access.png" data-entity-uuid="427b2645-479d-4131-9fff-19a46a157001" data-entity-type="file" alt="Emory Healthcare Network Partnership Builds New Paths to Access. A clinician in scrubs holding a clipboard stands in front of a CVS Health MinuteClinic kiosk." width="1200" height="751"><p>At a time when many retail pharmacies are rethinking their strategies and cutting back on primary care service offerings, Emory Healthcare Network and CVS Health are bucking that trend in Georgia.</p><p>Emory is expanding its relationship with CVS’ MinuteClinics in 35 locations. The <a href="https://news.emory.edu/stories/2025/02/hs_cvs_minuteclinic_ehn_primary_care_collaboration_20-02-2025/story.html" target="_blank" title="Emory University Emory News Center: MinuteClinic and Emory Healthcare Network expand primary care access to Georgians">partnership</a> that began in 2011 is evolving to provide more options for primary and preventive care throughout the Atlanta metro area that Emory Healthcare serves. It’s all part of Emory’s continuing push to look for meaningful ways to broaden access to primary care in the state and to address a shortage of critical providers, Emory Healthcare leaders note.</p><p>MinuteClinic primary care patients will have access to Emory Healthcare Network’s extensive resources, including hospitals, specialists, diagnostic and radiology facilities and specialty labs, making it easy for patients to receive additional care when needed.</p><p>Since the outset of their relationship, Emory and MinuteClinic have worked together to offer walk-in adult wellness exams or physicals and sick visits at various MinuteClinic locations. MinuteClinic nurse practitioners and other advanced practice providers staff the clinics and Emory physicians serve as collaborating physicians for the locations, which offer same-day visits and offer evening and weekend hours or virtual services that make care more convenient.</p><p>MinuteClinics largely serve younger, healthier patients, and their expectations around interacting with the health care system are unique, so having MinuteClinic as a network option expands the reach of primary care, Creagh Milford, D.O., president of retail health, recently told Fierce Healthcare.</p><p>And because both Emory and MinuteClinics use Epic electronic health records, it’s easier to keep the full care team abreast of patient encounters. CVS also has introduced training and new workflows for MinuteClinic staff to focus on such preventive care services as health maintenance visits, screenings and management of chronic conditions.</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } h2 { color: #9d2235; } Tue, 04 Mar 2025 06:00:00 -0600 Primary Care /aha-center-health-innovation-market-scan/2024-11-12-cvs-minuteclinics-introduce-primary-care-select-markets <div class="container"><div class="row"><div class="col-md-8"><p><img src="/sites/default/files/inline-images/CVS-MinuteClinics-Introduce-Primary-Care-in-Select-Markets.png" data-entity-uuid="3033924c-ce35-4170-bc22-2a4b9c922161" data-entity-type="file" alt="CVS MinuteClinics Introduce Primary Care in Select Markets. Two clinicians in a CVS MinuteClinic review medical records on a clipboard." width="100%" height="100%">)</p><p><a href="https://www.cvshealth.com/" target="_blank" title="CVS Health homepage">CVS Health</a> announced last week that it now will provide in-network primary care for Aetna members in select markets through its <a href="https://www.fiercehealthcare.com/retail/cvs-expanding-its-minuteclinics-primary-care-heres-why" target="_blank" title="Fierce Healthcare: CVS is expanding its MinuteClinics into primary care. Here's why">MinuteClinics</a>. This service is available for some individual and commercial members in Houston, San Antonio and the greater Atlanta area, with plans for future expansion. <a href="https://www.cvs.com/minuteclinic" target="_blank" title="MinuteClinic homepage">MinuteClinics</a>, located in CVS pharmacies, total about 1,100 locations nationwide.</p><p>Creagh Milford, D.O., MPH, president of retail health for CVS, said that while the national average wait time for a primary care appointment is about 26 days, some MinuteClinic patients report having waited three months to a year to see their primary care provider. This lack of timely access often results in higher-cost visits to emergency departments or urgent care centers and limits preventive care access.</p><p>MinuteClinics currently serve about 5 million patients, with data showing that about half do not have a primary care provider or have not seen one in years. This represents an opportunity for CVS to connect patients with essential primary care services. Milford noted that in pilot markets, interest in primary care services has been strong.</p><p>Historically, MinuteClinics have offered wellness visits, chronic condition management and behavioral health services. In these initial markets, this has expanded to include a full range of primary care services. MinuteClinics leverage Epic's electronic health record system to support comprehensive population health management and identify care gaps, enabling value-based primary care delivery.</p><p>CVS’s expansion into primary care with MinuteClinics includes plans to launch in two more markets this year and expand further in 2025. This move comes amid a mixed landscape for retail health: <a href="https://corporate.walmart.com/news/2024/04/30/walmart-health-is-closing" target="_blank" title="Walmart: Walmart Health Is Closing">Walmart recently closed its health clinics</a> and <a href="https://www.forbes.com/sites/saibala/2024/08/19/walgreens-potential-sale-of-villagemd-yet-again-signals-the-challenges-of-care-delivery/" target="_blank" title="Forbes: Walgreens’ Potential Sale Of VillageMD Yet Again Signals The Challenges Of Care Delivery">Walgreens is considering selling</a> its primary care unit, <a href="https://www.villagemd.com/" target="_blank' title=" villagemd>VillageMD</a>.</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } Tue, 12 Nov 2024 06:00:00 -0600 Primary Care /aha-center-health-innovation-market-scan/2024-11-05-walgreens-cvs-and-walmart-scale-back-health-care-amid-financial-strain <div class="container"><div class="row"><div class="col-md-8"><p><img src="/sites/default/files/inline-images/Walgreens-CVS-and-Walmart-Scale-Back-on-Health-Care-amid-Financial-Strain.png" data-entity-uuid="4504aa73-93b1-4f84-8829-f7dbdc92bdc3" data-entity-type="file" alt="Walgreens, CVS and Walmart Scale Back on Health Care amid Financial Strain. A business man with Walmart, CVS, and Walgreens logos on the back of his suitcoat and holding a giant ruler faces a bar graph showing a downward trend." width="100%" height="100%"></p><p>In 2024, retail health care faced significant disruption as industry giants like Walgreens, CVS and Walmart reevaluated their health care strategies in response to rising operational costs, reimbursement challenges and shifting market conditions. The difficulties encountered by these companies illustrate the complex nature of balancing health care delivery with traditional retail operations, requiring more than capital investments to remain sustainable.</p><p>Managing care services within a retail framework has proven to be a formidable task. Retailers must align their strategies within health care regulations, manage unpredictable reimbursement models and overcome staffing shortages, all while maintaining profitability. With rising labor costs and an uncertain financial landscape, several major retailers are scaling back their health care ambitions or pivoting to new approaches.</p><h2><span>Walgreens</span> <span>|</span> Scaling Back VillageMD</h2><p>Walgreens, once committed to making VillageMD the centerpiece of its health care strategy, has significantly altered its course. At the <a href="https://www.walgreensbootsalliance.com/news-media/our-stories/walgreens-hlth-2024-committing-patient-care-local-communities" target="_blank" title="Walgreens Boots Alliance: Pharmacy & Healthcare Walgreens at HLTH 2024: Committing to patient care in local communities">HLTH Conference</a> in October, Walgreens’ U.S. health care president, Mary Langowski, revealed that the company is moving away from an exclusive reliance on VillageMD and adopting a diversified approach to health care delivery.</p><p>This year, <a href="/aha-center-health-innovation-market-scan/2024-04-09-walgreens-shutters-160-villagemd-clinics-after-6-billion-loss">Walgreens closed 160 VillageMD clinics</a> — approximately half of its footprint — due to rising operational costs, marking a significant retrenchment. The closures reflect broader financial pressures across the company, which also announced plans to shutter 1,200 retail stores, or about 14% of its total locations, over the next three years.</p><p>Walgreens had invested heavily in VillageMD, committing more than $6 billion to acquire a majority stake in 2021, with ambitions to expand into primary care. The aggressive expansion included the $8.9 billion acquisition of Summit Health+CityMD in 2023, adding multispecialty and urgent care services. However, the company struggled with financial headwinds in its pharmacy and retail segments, forcing a strategic pivot.</p><p>Walgreens now seeks to leverage its extensive retail network by deepening partnerships with multiple payers and pharmacy benefit managers. This shift signals a departure from a single-provider model and aims to position Walgreens as an integral part of the health care journey — offering touch points throughout the care continuum without being tied to a singular partner.</p><p>As part of its new strategy, Walgreens announced an <a href="https://www.walgreensbootsalliance.com/news-media/our-stories/walgreens-expands-virtual-healthcare-services-30-states-adds-lab-test-orders" target="_blank" title="Walgreens Books Alliance: Walgreens expands virtual healthcare services to 30 states, adds lab test orders and virtual STD treatments">expansion of its virtual health care</a>, which offers consultations for common conditions, as well as prescription questions and lab orders. Last week, the pharmacy retailer said it would provide virtual care to 30 states.</p><h2><span>CVS Health</span> <span>|</span> Facing Leadership Changes and Financial Pressures</h2><p>CVS Health also <a href="https://www.cvshealth.com/news/company-news/cvs-health-appoints-david-joyner-president-and-chief-executive-officer.html" target="_blank" title="CVS Health: CVS Health Appoints David Joyner President and Chief Executive Officer">announced a strategic realignment</a> in October, with CEO Karen Lynch stepping down amid the company’s mounting financial difficulties. Longtime executive David Joyner will take the helm as CVS contends with a decline in stock prices and rising costs within its Aetna health benefits segment, which includes Medicare Advantage plans.</p><p>Financial pressures have forced CVS to lower its earnings outlook three times this year. In a cost-cutting move, the company recently laid off approximately 2,900 employees and announced plans to reduce expenses by $2 billion. These measures include discontinuing some Coram infusion services and closing or selling 29 retail pharmacy locations.</p><p>Despite these challenges, CVS remains committed to expanding its primary care footprint through Oak Street Health, which operates more than 200 stand-alone centers across 25 states. CVS intends to open 24 additional Oak Street locations by year-end, demonstrating its belief in the long-term potential of primary care, even as other retailers are pulling back from the sector.</p><h2><span>Walmart</span> <span>|</span> Exiting Health Care Ambitions</h2><p>Earlier this year, Walmart announced that it would <a href="https://corporate.walmart.com/news/2024/04/30/walmart-health-is-closing" target="_blank" title="Walmart Corporate: Walmart Health Is Closing">close all 51 of its health clinics</a> and discontinue its virtual care services. The closures come as Walmart struggles to build a viable business model for health care operations launched in 2019. Positioned to provide affordable care in underserved communities, Walmart’s clinics faced challenges related to reimbursement structures and rising operational costs.</p><p>Initially, Walmart planned to expand its health care offerings, but rising expenses and market dynamics forced the company to retreat from health care delivery.</p><h2><span>Amazon</span> <span>|</span> Staying the Course amid Market Shifts</h2><p>While some retailers retreated from health care, Amazon continues to invest heavily in the sector. In 2023, Amazon acquired One Medical, a provider of physician-staffed clinics and virtual care services, which now operates nearly 240 offices across more than 20 U.S. markets.</p><p>At the HLTH Conference, <a href="https://newsroom.clevelandclinic.org/2024/10/21/cleveland-clinic-and-amazon-one-medical-announce-collaboration-to-expand-access-to-high-quality-coordinated-care-in-the-cleveland-area" target="_blank" title="Cleveland Clinic: Cleveland Clinic and Amazon One Medical Announce Collaboration to Expand Access to High-Quality Coordinated Care in the Cleveland Area ">Amazon announced a new partnership with Cleveland Clinic</a>, designed to coordinate care between One Medical’s primary care clinics and Cleveland Clinic’s network of specialists and hospitals. Amazon’s continued investment signals confidence in the future of retail health care, emphasizing the role of technology and partnerships in meeting consumer demand for accessible care.</p><h2><span>Key Takeaways</span> <span>|</span> The Future of Retail Health Care</h2><p>The divergent paths taken by Walgreens, CVS, Walmart and Amazon reflect the complex dynamics of retail health care. Success in this space depends on more than infrastructure and capital. Companies must align their strategies with market realities, maintain operational efficiency, create sustainable care models and compete with established providers.</p><p>Retailers venturing into health care must address rising labor costs, evolving reimbursement models and the intricacies of managing health care delivery alongside retail operations. As the industry evolves, technology, partnerships and flexible care models will play pivotal roles in determining which players can succeed in meeting consumer needs while maintaining profitability.</p><h3><span>Learn More</span></h3><p>This <a href="/aha-center-health-innovation-market-scan/2024-02-19-special-report-how-health-care-disruptors-will-transform-field">AHA Market Scan Trailblazer special report</a> explores the health care disruption outlook for 2024.</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } Tue, 05 Nov 2024 06:15:00 -0600 Primary Care /aha-center-health-innovation-market-scan/2024-10-29-cleveland-clinic-and-amazon-one-medical-partner-expand-primary-care <div class="container"><div class="row"><div class="col-md-8"><img src="/sites/default/files/inline-images/Cleveland-Clinic-and-Amazon-One-Medical-Partner-to-Expand-Primary-Care.png" data-entity-uuid="04462f85-deeb-4f71-978f-7187b8b62549" data-entity-type="file" alt="Cleveland Clinic and Amazon One Medical Partner to Expand Primary Care. A One Medical sign above an urban clinic and office." width="100%" height="100%" class="align-center"><p>Cleveland Clinic announced last week that it is <a href="https://newsroom.clevelandclinic.org/2024/10/21/cleveland-clinic-and-amazon-one-medical-announce-collaboration-to-expand-access-to-high-quality-coordinated-care-in-the-cleveland-area" target="_blank" title="Cleveland Clinic Newsroom: Cleveland Clinic and Amazon One Medical Announce Collaboration to Expand Access to High-Quality Coordinated Care in the Cleveland Area">partnering with Amazon One Medical to bring primary and specialty care</a> to Northeast Ohio. <a href="https://www.onemedical.com/" target="_blank" title="Amazone One Medical homepage">One Medical</a>, a hybrid primary care provider offering both virtual and in-person services, will open its first Cleveland-area office in affiliation with Cleveland Clinic.</p><p>The new facility will provide same-day and next-day appointments, on-site lab services and comprehensive virtual care to support patients. Together, the organizations aim to offer more accessible and coordinated health care to the community.</p><p>One Medical offers members same-day appointments and 24/7 virtual care for an annual fee of $199, with a discounted rate of $99 for Amazon Prime members. The company collaborates with about 20 health systems nationwide, providing specialty care referrals through these partnerships.</p><p>“This partnership reflects our shared commitment to meeting the needs of our patients and elevating the care we provide to our communities,” said Tom Mihaljevic, M.D., Cleveland Clinic’s CEO and president. “Amazon One Medical will complement our current primary care offerings, expanding access to essential health care services.”</p><p>The first location is set to open in 2025, with additional sites to be determined by both organizations. Over the coming years, Cleveland Clinic and Amazon One Medical will work together to determine where new offices are needed to meet patient demand in Northeast Ohio.</p><p>A day after announcing the Cleveland Clinic partnership, One Medical introduced <a href="https://www.aboutamazon.com/news/innovation-at-amazon/amazon-one-medical-launches-ai-tools-for-better-patient-care" target="_blank" title="Amazon: Amazon One Medical launches AI tools to help doctors get back to focusing on patient care">new AI tools aimed at reducing the administrative burden on its providers</a>. These tools leverage AWS generative AI services, including <a href="https://aws.amazon.com/bedrock/" target="_blank" title="AWS: Amazon Bedrock landing page">Amazon Bedrock</a> and <a href="https://aws.amazon.com/healthscribe/" target="_blank" title="AWS: AWS HealthScribe landing page">AWS HealthScribe</a>.</p><p>Using HealthScribe, One Medical providers can capture conversations in real time during patient visits. The AI-generated notes then can be reviewed, modified and approved by the providers before being finalized. The AI tools also streamline patient care by analyzing and summarizing external medical records, giving physicians quick access to essential information such as screening exams, test results and current or past medications.</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } Tue, 29 Oct 2024 06:00:00 -0500 Primary Care /aha-center-health-innovation-market-scan/2024-08-20-what-make-seismic-shifts-retail-health-care <div class="container"><div class="row"><div class="col-md-8"><p><img src="/sites/default/files/inline-images/What-to-Make-of-the-Seismic-Shifts-in-Retail-Health-Care.png" data-entity-uuid="0b15638c-c3c1-4c9b-b2d2-f7aaa2a462ef" data-entity-type="file" alt="What to Make of the Seismic Shifts in Retail Health Care. A hospital executive on a mountaintop looks into a cloud of fog to see what the future holds for retail health care at Walmart, Walgreens, and CVS Health." width="100%" height="100%"></p><p>No matter how you slice it, 2024 was going to be a telling year for retailers in health care. Companies that have invested billions of dollars in providing primary care and health and wellness services have had to make tough decisions about their strategies and futures in the field.</p><p>By the end of Q2, it became apparent that the great experiment was crumbling for some companies. For others, the dream had largely died. And even for the most diversified companies like CVS Health, there has been some painful financial news.</p><p>Here’s a rundown on key changes impacting three of health care’s largest retailers and questions they will need to address about their future in this space.</p><h2><span>Walgreens</span> <span>|</span> Their Primary Care Gambit Takes a Major Hit</h2><p><img src="/sites/default/files/inline-images/Walgreens.png" data-entity-uuid="ba81bc6b-c75e-4e17-abda-0131f8d36daa" data-entity-type="file" alt="Walgreens sign." width="25%" height="25%" class="align-left">Earlier this month, news broke from an <a href="https://investor.walgreensbootsalliance.com/static-files/d13137b6-4aa0-43e5-bd06-0d6143c4d464" title="Walgreens Boots Alliance, Inc., Form 8-K" target="">8-K report</a> Walgreens filed with the Securities and Exchange Commission that the retailer was considering selling all or some of its 53% stake in the primary care provider VillageMD.</p><p>The partnership with VillageMD was designed to provide primary care locations adjacent to hundreds of Walgreens stores around the country. But after announcing last fall that it would close 60 underperforming VillageMD locations in five markets as part of a $1 billion cost-cutting initiative, Walgreens in March said it would close a total of 160 clinics.</p><p>These announcements signaled a potentially huge about-face in Walgreens’ health care strategy. After all, in 2020 and 2021 the company had invested $6.2 billion in VillageMD as a centerpiece for its plans to compete in the retail primary care space with CVS Health, Walmart and Amazon, which acquired One Medical, another primary care provider.</p><p>VillageMD remains unprofitable and analysts see the company as a significant drag on Walgreens’ financial performance, including a $6 billion loss in the second quarter. In addition, VillageMD has defaulted on a $2.25 billion loan agreement with Walgreens, according to the 8-K filing.</p><h3><span>Walgreens’ Key Remaining Questions for 2024</span></h3><ul><li>What will be the company’s value play in health care after the company decides its long-term relationship with VillageMD?</li><li>Will Walgreens’ CEO Tim Wentworth, who took over in October, be able to right the company’s financial ship and establish a clear vision for its future in health care?</li><li>Will the company return to its pharmacy and retail roots or retool its primary care strategy?</li></ul><h2><span>CVS Health</span> <span>|</span> Not Immune from Market Challenges</h2><p><img src="/sites/default/files/inline-images/CVS-Health.png" data-entity-uuid="ed4fd4e5-ea67-42ca-bf84-4552efdb8412" data-entity-type="file" alt="CVS store front." width="25%" height="25%" class="align-left">Along with Amazon, CVS Health has long been the most aggressive investor in retail health care. But it, too, is feeling the financial pain of trying to manage its role effectively as a care provider, pharmacy and insurer with its subsidiary Aetna.</p><p>The company recently <a href="https://www.reuters.com/business/healthcare-pharmaceuticals/cvs-health-cuts-2024-profit-forecast-elevated-medical-costs-2024-08-07/" target="_blank" title="Reuters: CVS Health expects medical costs to remain high through the year">slashed its full-year profit outlook and announced plans to cut $2 billion in costs</a> over the next several years as rising medical costs continue to have a negative impact on CVS and the broader health insurance industry.</p><p>Aetna’s poor financial performance — including a 39% drop in second-quarter operating income — recently <a href="https://www.ctinsider.com/business/article/ct-aetna-cvs-kane-lynch-hartford-ri-ceo-19625667.php" target="_blank" title="CT Insider: CVS replaces Hartford-based Aetna head Brian Kane after less than one year on the job">cost company president Brian Kane his job</a>. He is being replaced by CVS CEO Karen Lynch.</p><p>Lynch and her team now must deal with the unfavorable impact of Aetna’s Medicare Advantage star ratings, which help Medicare patients compare the quality of Medicare health and drug plans.</p><p>CVS’ health services segment, meanwhile, continues to drive substantial revenue for the company. It generated <a href="https://www.cnbc.com/2024/08/07/cvs-health-cvs-earnings-q2-2024.html#:~:text=CVS%E2%80%99%20health%20services%20segment%20generated%20%2442.17%20billion%20in%20revenue%20for%20the%20quarter%2C%20down%20nearly%209%25%20compared%20with%20the%20same%20quarter%20in%202023.%C2%A0" target="_blank" title="CNBC: CVS slashes profit guidance, will cut $2 billion in expenses as insurance costs climb">$42.17 billion last quarter</a>, down nearly 9% from the same quarter last year but near analyst expectations.</p><h3><span>CVS’ Key Remaining Questions for 2024</span></h3><ul><li>Can Lynch and her new management team improve Aetna’s financial performance and operations in the long term?</li><li>Will the company’s primary care strategy change over the coming year and beyond or the way that it integrates with its pharmacy, insurance and other businesses?</li><li>How will the company overcome the challenges in its Medicare Advantage business?</li></ul><h2><span>Walmart</span> <span>|</span> Tapping Out on Primary Care</h2><p><img src="/sites/default/files/inline-images/Walmart.png" data-entity-uuid="407d4a7c-aec1-4ff8-bbad-72c49ce4e6bc" data-entity-type="file" alt="Walmart carts." width="25%" height="25%" class="align-left">After taking a more measured approach to its move into opening primary care clinics, Walmart Health in late June <a href="https://www.cnn.com/2024/04/30/business/walmart-closes-health-clinics/index.html" title="Walmart will close all of its health care clinics" target="_blank"">closed all of its 51 health care clinics</a> across the country and shuttered its telehealth operations.</p><p>The company cited business conditions it could not overcome in making the decision to walk away from primary care. Walmart leaders said they could not operate a profitable business due to a challenging reimbursement environment and rising operating costs.</p><p>The <a href="https://www.cnbc.com/2024/04/30/walmart-to-shutter-health-centers-virtual-care-service.html#:~:text=The%20shortage%20of%20health%2Dcare%20workers%20in%20the%20U.S.%20has%20also%20increased%20the%20company%E2%80%99s%20labor%20costs%2C%20according%20to%20the%20sources%20familiar%20with%20the%20matter.%C2%A0" target="_blank" title="CNBC: Walmart to shutter health centers, virtual care service in latest failed push into health care">shortage of health care workers in the U.S.</a> also increased Walmart’s labor costs, company sources told CNBC.</p><p>In March, <a href="https://www.forbes.com/sites/brucejapsen/2024/03/29/walmart-health-clinic-expansion-on-track-for-70-by-years-end/" target="_blank" title="Forbes: Walmart Health Clinic Expansion On Track For 70 By Year’s End">Walmart leaders said they planned to have 70 health care clinics</a> operating by year-end. That plan was scuttled, however, as the company assessed the long-term prospects for success in an increasingly crowded field.</p><p>It seems that Walmart learned the painful lesson that taking on primary care as a loss leader to help build other segments of its business was not a successful strategy.</p><h3><span>Walmart’s Key Remaining Questions for 2024</span></h3><ul><li>How will Walmart’s health care focus shift in the future? Last month, the company stated that it planned to lease space to Humana’s CenterWell business to establish 23 senior-focused primary care clinics at Walmart Superstore locations in Florida, Georgia, Missouri and Texas. Could this be a precursor to a larger play in targeting health needs for seniors?</li><li>Will the company be content in its current mix of pharmacy and health and wellness services or will it take another angle to provide health care to its vast customer base?</li></ul></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } Tue, 20 Aug 2024 06:15:00 -0500 Primary Care /aha-center-health-innovation-market-scan/2024-08-13-will-one-medical-change-after-losing-google-contract <div class="container"><div class="row"><div class="col-md-8"><p><img src="/sites/default/files/inline-images/Will-One-Medical-Change-after-Losing-Google-Contract.png" data-entity-uuid="ad55f52d-d040-4a8b-b2a7-c53b73be0b82" data-entity-type="file" alt="Will One Medical Change after Losing Google Contract? A One Medical columned storefront." width="100%" height="100%"></p><p>The recent news that Amazon’s primary care subsidiary One Medical will lose its long-standing contract with Google at year-end created quite a buzz about how this might impact the provider’s business.</p><p>After all, Google’s roughly 180,000 employees who received discounted medical care under the contract, accounted for about 10% of One Medical’s revenue in 2020. That figure dropped slightly in 2021, according to media reports. One Medical stopped publicly sharing financials after it was acquired by Amazon in 2022, so it is difficult to know the impact this will have on One Medical’s revenues going forward.</p><p>For its part, Google has stated that the decision to end the One Medical contract had nothing to do with Amazon’s ownership of the primary care provider. Existing One Medical locations on Google’s campuses now have transitioned to Premise Health, which provides digital and in-person health care and wellness services for employers.</p><h2><span>4 Takeaways on How One Medical Will Be Impacted by Google’s Move</span></h2><h3><span>1</span> <span>|</span> One Medical will remain an in-network provider for Google.</h3><p>The key difference is that Google workers will need to pay for their own memberships after this year.</p><h3><span>2</span> <span>|</span> One Medical recalibrates its client strategy.</h3><p>For 2024, the company will focus on midsize clients while developing and building a better strategy for large corporate customers, according to an <a href="https://www.businessinsider.com/google-drops-amazon-one-medical-2024-7" target="_blank" title="Business Insider: Google Drops Amazon's One Medical">internal document</a> that Business Insider (BI) obtained.</p><h3><span>3</span> <span>|</span> The focus on employee communications will change.</h3><p>One Medical plans to improve its direct-to-employee communications with more health-benefit data, BI reported. One Medical wants to contractually require enterprise customers to deliver employee contact information to facilitate direct communication, which typically results in higher usage.</p><h3><span>4</span> <span>|</span> The focus on wellness will increase.</h3><p>The document obtained by BI also indicates that One Medical hopes to boost the percentage of annual wellness visits by enterprise members from 16% to 28% to a total of 160,000 per year.</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } Tue, 13 Aug 2024 06:00:00 -0500 Primary Care /aha-center-health-innovation-market-scan/2024-08-06-whats-behind-humana-walmart-lease-deal-provide-primary-care-seniors <div class="container"><div class="row"><div class="col-md-8"><p><img src="/sites/default/files/inline-images/Whats-Behind-the-Humana-Walmart-Lease-Deal-to-Provide-Primary-Care-to-Seniors.png" data-entity-uuid="ccedd6bd-a4d5-4b9f-98d3-0c1f9f2899bf" data-entity-type="file" alt="What’s Behind the Humana-Walmart Lease Deal to Provide Primary Care to Seniors? A performer on a stage opens a curtain to reveal the Walmart and Humana logos." width="100%" height="100%"></p><p>The <a href="https://press.humana.com/news/news-details/2024/CenterWell-Announces-Plans-to-Open-23-Senior-Primary-Care-Centers-at-Walmart-Locations-in-Florida-Georgia-Missouri-and-Texas/default.aspx#gsc.tab=0" target="_blank" title="Humana: CenterWell Announces Plans to Open 23 Senior Primary Care Centers at Walmart Locations in Florida, Georgia, Missouri and Texas">recent news</a> that Humana’s CenterWell would be leasing space to open 23 senior-focused primary care clinics outside former Walmart health clinics initially seemed like a head scratcher.</p><p>After all, just three months ago Walmart announced it was closing its 51 Walmart Health centers in five states and exiting its telehealth business, stating that it didn’t see a sustainable business model in primary care.</p><p>Now, like the infamous scene from Godfather III, some might be wondering if one or more Walmart executives aren’t muttering, “Just when I thought I was out, they pull me back in.” What in the name of Sam Walton is going on here?</p><h2><span>3 Takeaways on the Humana Deal</span></h2><h3><span>1</span> <span>|</span> This is more of a Humana play, than a Walmart play.</h3><p>The centers will operate adjacent to Walmart stores under the CenterWell Senior Primary Care and Conviva Care Centers brand names, Humana leaders noted. The centers, in various communities in Florida, Georgia, Missouri and Texas, will provide primary care services designed specifically for older adults.</p><h3><span>2</span> <span>|</span> The move will support Humana’s Medicare Advantage business.</h3><p>Earlier this year, Humana announced that it planned to enter three new markets in North Carolina and Louisiana and add additional centers in eight of its current U.S. markets. Humana is among the many health insurers accelerating its efforts to provide convenient access to its members.</p><p>But Humana may have more on the line than some of its competitors, analysts suggest, because of the significant investments it has made in its Medicare Advantage business. The company stated last year that it would exit the employer insurance market in 18-24 months to focus solely on government-sponsored health plans like Medicare and Medicaid.</p><p>Early indications from the change in strategy have not been positive. In late January, Humana — the nation’s second largest private Medicare insurer — projected roughly half the profit in 2024 that investors had expected, according to media reports.</p><h3><span>3</span> <span>|</span> Walmart’s health and wellness business stands to benefit.</h3><p>Company executives see the leasing deal as a win for its older customers as Walmart continues to focus on the pharmacy and optical sides of its health care operations. The centers, they say, will provide convenient access to primary care for seniors.</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } Tue, 06 Aug 2024 06:00:00 -0500 Primary Care /news/headline/2024-07-11-cms-announces-participants-its-new-primary-care-model <p>The Centers for Medicare & Medicaid Services July 10 announced there will be 133 participants representing 772 practices for its new <a href="https://www.cms.gov/priorities/innovation/innovation-models/making-care-primary" target="_blank">Making Care Primary Model</a>. Participants in this voluntary model are from Colorado, Massachusetts, Minnesota, New Jersey, New Mexico, New York, North Carolina and Washington. The model, which began July 1 and will run through 2034, seeks to improve care management and care coordination, enable primary care clinicians to partner with health care specialists, and use community-based connections to address patients’ health needs as well as their health-related social needs such as housing and nutrition.</p> Thu, 11 Jul 2024 14:52:57 -0500 Primary Care /concord/case-studies/clarify-health <div></div><div> /* Banner_Title_Overlay_Bar */ .Banner_Title_Overlay_Bar { position: relative; display: block; overflow: hidden; max-width: 1170px; margin: 0px auto 25px auto; } .Banner_Title_Overlay_Bar h1 { position: absolute; bottom: 40px; color: #003087; background-color: rgba(255, 255, 255, .8); width: 100%; padding: 20px 40px; font-size: 3em; box-shadow: 0 3px 8px -5px rgba(0, 0, 0, .6); } @media (max-width:991px) { .Banner_Title_Overlay_Bar h1 { bottom: 0px; margin: 0px; font-size: 2.5em; } } @media (max-width:767px) { .Banner_Title_Overlay_Bar h1 { font-size: 2em; text-align: center; text-indent: 0px; padding: 10px 20px; } } @media (max-width:530px) { .Banner_Title_Overlay_Bar h1 { position: relative; background-color: #63666A22; } } /* Banner_Title_Overlay_Bar // */ .Banner_Title_Overlay_Bar h1 { color: #fff; background-color: rgba(255, 255, 255, .0); box-shadow: none; } @media (max-width:530px){ .Banner_Title_Overlay_Bar h1 { background-color:#000; } } <header class="Banner_Title_Overlay_Bar"><img src="/sites/default/files/2023-06/Concord_Investing_banner1_1170x250.jpg" alt="Banner Image" width="1168" height="250"><div><h1>East Coast Health System Enhances Care Continuity</h1></div></header></div><div class="raw-html-embed"> /* CntMenuSub */ .CntMenuSub{ margin:20px 0px; padding-bottom: 5px; color: #afb1b1; letter-spacing: 1.5px; font-weight: 400; font-size: 11.2px; } .CntMenuSub a{ text-decoration:none } .CntMenuSub .CntMenuBar{ border-bottom: 1px solid lightblue; } /* if includes a logo */ @media (min-width:361px){ .CntMenuSub.CntMenuSubLogo .CntMenuBar{ margin-top: 10px; float: left; width: calc(100% - 425px); } } @media (max-width:767px) and (min-width:361px){ .CntMenuSub.CntMenuSubLogo .CntMenuBar{ float: left; width: calc(100% - 0px); } .CntMenuSub.CntMenuSubLogo img{ width: auto; } } /* // */ .CntMenuSub .CntMenuBar a:after{ content: "|"; padding: 0 3px 0 6px; color: #555; } .CntMenuSub .CntMenuBar a:last-child:after{ content: ""; } .CntMenuSub .CntMenuSubHome, .CntMenuSub .CntMenuSubParent{ text-transform: uppercase; color: #555; opacity: .9; } .CntMenuSub .CntMenuSubParent{ } .CntMenuSub .CntMenuSubChild{ } .CntMenuSub .CntMenuSubCurrent{ opacity: .7; } .CntMenuSub .CntMenuSubHome:hover, .CntMenuSub .CntMenuSubParent:hover{ text-transform: uppercase; color: #d50032; } /* CntMenuSub // */ <div class="container CntMenuSub"> <div class="col-md-1">   </div> <div class="col-md-10 row CntMenuBar"> <a class="CntMenuSubHome" id="CntMenuSubHome"></a> <a class="CntMenuSubParent" id="CntMenuSubParent" href="./"></a> <span class="CntMenuSubChild" id="CntMenuSubChild"></span> </div> <div class="col-md-1">   </div> </div> var url = window.location.pathname; var path = url.split('/').slice(-3, 2).join('/'); var pathreplace = path.replace(/-/g, " "); document.getElementById("CntMenuSubHome").innerHTML =(pathreplace); var url = window.location.pathname; var path = url.split('/').slice(-2, 3).join('/'); var pathreplace2 = path.replace(/-/g, " "); document.getElementById("CntMenuSubParent").innerHTML =(pathreplace2); var url = window.location.pathname; var path = url.split('/').slice(1, 2).join('/'); var pathreplace2 = path.replace(/-/g, " "); document.getElementById("CntMenuSubParentOnly").innerHTML =(pathreplace2); var y = document.getElementsByTagName("h1"); document.getElementById("CntMenuSubChild").innerHTML = y[0].innerHTML; </div><div class="row sp_Resource1"> .sp_Resource1 { /*padding: 25px 0 0px 0;*/ } .sp_Resource1 h2 { margin-top: 0px; } .sp_Resource1 h3 { margin: 10px 0 0 0; color: #555; font-size: .7em; text-transform: uppercase; font-weight: 400; letter-spacing: 3px; } .sp_Resource1 h4 { color: #002855; line-height: 1.2em; font-size: 30px; margin: 10px 0 15px 0 } .sp_Resource1 p, .sp_Resource1 ul li { font-size: 16px; } .sp_Resource1_holder { background-color: ; padding: 0; overflow: auto } .sp_Resource1 .sp_Resource1_holder img { margin: auto; display: block; box-shadow: 10px 10px 14px -6px rgba(0,0,0,0.75); -webkit-box-shadow: 10px 10px 14px -6px rgba(0,0,0,0.75); -moz-box-shadow: 10px 10px 14px -6px rgba(0,0,0,0.75); } @media (max-width:767px) { .sp_Resource1 .sp_Resource1_holder img { width: 100%; max-width: 150px; } } .sp_Resource1 .btn { margin-top: 20px; } .sp_Resource1_holder h2 span { color: #d50032; display: block; position: relative; font-size: .8em; } <div class="col-md-10 col-md-offset-1 sp_Resource1_holder"><div class="text-align-center col-sm-4 col-md-3"><a href="/system/files/media/file/2024/11/Clarify-atlas-case-study-health-system-enhances-care-continuity.pdf" target="_blank" title="East Coast health system enhances care continuity and increases downstream revenue by $37M with next-gen referral analytics"><img src="/sites/default/files/2024-11/clarify-atlas-system-enhances-care-continuity-247x320.jpg" alt="Cover image" width="247" height="320"></a> </div><div class="col-sm-8 col-md-9"> Scan </h3> --><h2><span>Case Study</span> <a href="/system/files/media/file/2024/11/Clarify-atlas-case-study-health-system-enhances-care-continuity.pdf" target="_blank" title="East Coast health system enhances care continuity and increases downstream revenue by $37M with next-gen referral analytics">East Coast health system enhances care continuity and increases downstream revenue by $37M with next-gen referral analytics</a></h2><p>Learn how by gaining visibility into referral patterns across primary care physicians, specialists, and post-acute care in its market, a leading not-for-profit health system has been able to grow by improving physician alignment, strengthening network integrity, and reducing referral leakage. The health system saw an additional 37,000 referrals kept in-network when compared to the prior year, significantly improving its financial performance.</p><p><a class="btn btn-wide btn-primary" href="/system/files/media/file/2024/11/Clarify-atlas-case-study-health-system-enhances-care-continuity.pdf" target="_blank" title="East Coast health system enhances care continuity and increases downstream revenue by $37M with next-gen referral analytics"><span>Read Case Study</span></a><span> </span></p></div></div></div> /* y-hr3 */ .y-hr3{ clear: both; } .y-hr3 div:nth-child(2) { border-top: solid 2px lightgrey; margin: 50px 0px; height: 0px } /* y-hr3 // */ <div class="row y-hr3"><div class="col-md-3"> </div><div class="col-md-6"> </div><div class="col-md-3"> </div></div><div class="row spacer"><div class="col-sm-8 col-md-offset-2"><div><a href="https://clarifyhealth.com/?utm_source=aha&utm_medium=web&utm_campaign=aha-concord-portcos&utm_term=2024&utm_content=casestudy" target="_blank" title="Clarify Health "><img src="/sites/default/files/2024-11/logo-clarify-2024_834x313.jpg" alt="Clarify Health logo" width="417" height="157"></a><h3><a href="https://clarifyhealth.com/solutions/providers/?utm_source=aha&utm_medium=web&utm_campaign=aha-concord-portcos&utm_term=2024&utm_content=casestudy" target="_blank" title="Clarify Health">Clarify Health</a></h3><p>Clarify Health unlocks valuable insights making complex care decisions easier for providers, payers, tech and services organizations, and life science companies. The <a href="https://clarifyhealth.com/platform/?utm_source=aha&utm_medium=web&utm_campaign=aha-concord-portcos&utm_term=2024&utm_content=casestudy">Clarify Atlas Platform®</a> forms the foundation to stack the building blocks necessary to grow topline, contain costs, guide care, and more. Powered by the industry’s largest and most robust dataset of over 300 million lives and more than 20 billion AI-powered predictions, Clarify’s offerings deliver actionable insights with unparalleled speed and actionability.</p><p>Clarify’s excellence has been recognized by industry analysts and watchers, including a <a href="https://clarifyhealth.com/insights/news/clarify-health-awarded-best-in-klas-2024-for-data-analytics-platforms-for-payers/?utm_source=aha&utm_medium=web&utm_campaign=aha-concord-portcos&utm_term=2024&utm_content=casestudy">Best in KLAS</a> award naming Clarify Health #1 for Data Analytics Platform by KLAS Research. Clarify has also been recognized regularly by the world’s largest and most trusted software marketplace, <a href="https://www.g2.com/products/clarify-atlas/reviews?utm_source=aha&utm_medium=web&utm_campaign=aha-concord-portcos&utm_term=2024&utm_content=casestudy">G2</a>, for high customer satisfaction.</p><p>To learn more about Clarify Health and its high-performance healthcare insights, please visit <a href="https://clarifyhealth.com/?utm_source=aha&utm_medium=web&utm_campaign=aha-concord-portcos&utm_term=2024&utm_content=casestudy">www.clarifyhealth.com</a> or <a href="mailto:Nishta@clarifyhealth.com?subject=I%20would%20like%20to%20learn%20more%20about%20your%20solution&body=I%20would%20like%20to%20learn%20more%20about%20the%20work%20your%20company%20is%20doing%20with%20hospitals%20and%20health%20care%20providers." title="contact Nishta Giallorenzo">contact Nishta Giallorenzo</a>.</p></div></div></div> /* y-hr3 */ .y-hr3{ clear: both; } .y-hr3 div:nth-child(2) { border-top: solid 2px lightgrey; margin: 50px 0px; height: 0px } /* y-hr3 // */ <div class="row y-hr3"><div class="col-md-3"> </div><div class="col-md-6"> </div><div class="col-md-3"> </div></div> Fri, 31 May 2024 09:43:24 -0500 Primary Care /aha-center-health-innovation-market-scan/2024-05-07-disruptors-are-getting-disrupted-5-takeaways <div class="container"><div class="row"><div class="col-md-8"><p><img src="/sites/default/files/inline-images/The-Disruptors-Are-Getting-Disrupted-5-Takeaways.png" data-entity-uuid="b1a7195e-530f-4c08-9f77-d31972bfcb1b" data-entity-type="file" alt="The Disruptors Are Getting Disrupted — 5 Takeaways. A man rubbing his head stands in front of a Walmart Health Center that has a Closed sign on its front door." width="100%" height="100%"></p><p>If recent developments are any indication, it appears that primary care disruptors are being disrupted.</p><p>Regulatory complexities, reimbursement challenges, escalating operating costs, competition for physicians and other factors are taking the steam out of some of retail’s largest companies that once were brimming with optimism.</p><p>Walmart’s <a href="https://corporate.walmart.com/news/2024/04/30/walmart-health-is-closing" target="_blank" title="Walmart Corporate: Walmart Health Is Closing">announcement</a> last week that it will close its 51 health centers in five states and exit virtual care services stunned many observers. Only five years ago, the mega-retailer was touting its business model of bringing convenient access and low-cost primary care to millions of its customers. And just last year, it added 17 primary care centers in Florida.</p><p>Now Walmart says there is not a sustainable business model to continue.</p><h2><span>Facing Health Care’s Harsh Economic Realities</span></h2><p>Walmart is hardly the only company waylaid by health care’s economic and business challenges. Just days earlier, UnitedHealth Group’s <a href="https://www.beckershospitalreview.com/disruptors/optum-shutting-down-telehealth-business.html" target="_blank" title="Becker's Health IT: Optum shutting down telehealth business">Optum subsidiary said it would shutter its virtual care business</a> after a three-year run. Some analysts called the move predictable, attributing it to challenges brought on by market saturation and differentiation challenges. The company, however, still remains a force in the direct care marketplace, employing the most physicians in the field.</p><p>Meanwhile, Walgreens continues to reshape its health care strategy. The retailer, which owns a 63% stake in primary care provider VillageMD, is <a href="https://www.modernhealthcare.com/providers/walgreens-villagemd-closing-clinics" target="_blank" title="Modern healthcare: Walgreens’ VillageMD closing almost 50% of clinics amid $6B hit">closing 160 of its health clinics</a> and took a $6 billion write-down last month in the value of its investment in the company. Contributing factors included slower than expected patient volume growth and changing Medicare reimbursement models.</p><p>And telehealth provider Teladoc, once the darling of Wall Street, has been battered financially as virtual care has become mainstream in a field flooded with competitors. Its stock, which peaked at $294 a share in February 2021, was <a href="https://www.fool.com/data-news/2024/04/29/teladoc-health-reports-mixed-results/" target="_blank" title="The Motley Fool: Teladoc Health Reports Mixed Results">selling for under $13 per share</a> on May 1.</p><h2><span>5 Takeaways on the Thinning Herd of Primary Care Disruptors</span></h2><h3><span>1</span> <span>|</span> The need to disrupt primary care remains.</h3><p>Whatever the shortcomings among the strategies of Walmart and others, they weren’t wrong about the need to dramatically alter the primary care landscape.</p><p>The fact remains that nearly one-third of Americans — more than 100 million — lack access to primary care, notes a 2023 report from the National Association of Community Health Centers. Addressing the needs of these medically disenfranchised people can help hospitals and health systems prevent chronic illnesses and identify risk factors for serious conditions.</p><h3><span>2</span> <span>|</span> Primary care must be viewed as more than a profit center.</h3><p>The truth is: Primary care is hard. The singular purpose of providing patients access to high-quality primary care leaves no room to squeeze profit out of a primary care practice. If the latter is your purpose, it will be difficult to sustain based on our current system, noted Andy Shin, senior vice president of strategy at Mass General Brigham, shortly after the Walmart news broke. Building a positive primary care relationship is key to higher-quality, personalized care; early identification of risk factors for disease; and coordination and continuity of care.</p><h3><span>3</span> <span>|</span> An opportunity exists for providers.</h3><p>Walmart’s exit from the market and other recent developments previously noted could create a temporary void that can be filled by providers who are community-focused and take innovative approaches to meet consumers’ needs for quick turnaround, on-demand services that typically aren’t supported by traditional primary care.</p><h3><span>4</span> <span>|</span> The law of the jungle still applies.</h3><p>Retailers are learning painful lessons that traditional care providers have long known. Only the fittest and most committed to meeting patients’ needs consistently excel in health care. Any emergency medicine physician in a hospital will tell you that health care is expensive and treating patients who haven't been seeing a doctor is not a simple transaction. In this regard, size may help but it can’t guarantee success, as Walmart learned.</p><h3><span>5</span> <span>|</span> All eyes turn to Amazon and CVS Health.</h3><p>Both companies continue to invest in their health care strategies and have cast a wider net than their peers in their health care aspirations that extends far beyond primary care. Amazon, for instance, has invested heavily in the health care supply chain, cloud services, pharmacy and artificial intelligence and will use its platform to connect consumers to other telehealth providers in the marketplace. CVS owns a major insurance plan in Aetna, has extensive health services, pharmacy and wellness divisions as well as other operations.</p><p>Yet, it remains to be seen how sustainable these companies’ strategies will be as their earnings in health care fall under increased scrutiny from investors.</p><hr><h2><span>Learn More</span></h2><p>Download Market Scan’s <a href="/system/files/media/file/2024/02/2024-Health-Care-Disruption-Outlook.pdf">2024 Health Care Disruption Outlook</a> for more on how major retail and tech companies will try to transform the field in the year ahead.</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } Tue, 07 May 2024 06:15:00 -0500 Primary Care