Just one year after it launched its first health clinic, Walmart Health announced its plan to establish 22 more retail clinic locations in Georgia, Florida, and Arkansas by the end of 2021—adding to its 13 existing clinics spanning these states and Texas. The clinics grant patients access to a range of healthcare services, including on-site lab testing, imaging, dental and vision services, psychiatric care, and access to health and wellness programs.
Along with a clinic expansion strategy, Walmart is also diversifying its healthcare offerings. In June of this year, the retail giant expanded its digital health footprint by acquiring CareZone's prescription management platform to offer medication management and delivery services to its customers.
And, earlier this month, it struck a deal with Medicare-focused primary care company Oak Street Health to incorporate the firm's primary care services at three major supercenters—a strategic move, especially as it wades into senior care. By providing these integrated health solutions, Walmart primes itself as a force to be reckoned with in the healthcare space, and it wouldn't be surprising to see it expand to include telehealth options that complement its digital medication platform and in-person offerings.
As Walmart Health plants its roots as a one-stop-shop for healthcare with a competitive pricing model, we think it's in pole position to poach patients from more traditional healthcare providers. With around 3,600 supercenters and 195 million weekly customers, Walmart already has the brick-and-mortar infrastructure and loyal consumer base to grow its clinics. And with the pandemic causing traditional health clinics to suffer severe financial losses, the company can use its substantial capital to disrupt the primary care space with its innovative model and full suite of health services to take the place of failing clinics.
Further, Walmart flaunts affordability—a primary care appointment costs $40 for adults and $20 for children at Walmart without insurance, which is a fraction of the US average of $106 for a primary care visit. That combined with its brand recognition and the convenience factor of providing comprehensive care at its Walmart supercenter locations may help boost customer acquisition.
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