The disruption promised by the retailization of healthcare hasn’t materialized as planned. Walmart and Walgreens recently announced the closing of retail clinics. “The news is a significant setback for retail health players, some of whom are now realizing that delivering retail-driven primary care may not be economically viable and certainly isn’t causing the disruption in local healthcare markets that many predicted,” said Emarketer senior analyst for digital health Rajiv Leventhal. Reimbursement for primary care is a major challenge, as are labor shortages and higher costs. Retailers that are not able to scale their clinics through synergies with other parts of their business models, as CVS has done, will find costs rising above their ability to make money.
Read the full article: Retail Clinic Failures Show Collaboration May Work Better than Competition //
Source: https://www.healthcarefinancenews.com/news/retail-clinic-failures-show-collaboration-may-work-better-competition