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Abstract

Health care management professionals noted that healthcare had become as a substantial part of the US economy (18% of GDP) and appealed as low hanging fruit for nontraditional players and big box retailers, etc. At the same time, the rising costs, physician shortages, consumerism, digital disruption had put pressure on traditional health care models paving way for new growth models including proliferation of Urgent Care Centers (UCCs) meant to provide episodic care and to treat non-emergency conditions. The UCC segment was expected to touch USD48 billion revenue mark in 2023. Walmart Health (Walmart) was all set to expand its in-store clinic model offering services such as primary and urgent care, labs, X-ray and diagnostics, dental, optical, hearing, behavioral health and counseling from about 30 (as of June 2023) to 74 locations by the end of 2024 across the US. Although Walmart centers were positioned to become Medicare Advantage providers with strong patient outcomes, it witnessed significant executive turnover, besides, faced challenges of rising and falling revenues in this segment. It remained to be seen how Walmart plans to navigate the changing health care landscape to its advantage amidst rising competition from the likes of Amazon, CVS and Walgreens.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2023.

Geographical setting

Region:
Americas

Featured company

Walmart Health
Type:
Public company
Industry:
Retail

Featured protagonists

  • Dr David Carmouche (male), Senior Vice President
  • Alan A Ayers (male), Senior Editor
  • Mark Pauly (male), Professor Emeritus at Wharton

About

Abstract

Health care management professionals noted that healthcare had become as a substantial part of the US economy (18% of GDP) and appealed as low hanging fruit for nontraditional players and big box retailers, etc. At the same time, the rising costs, physician shortages, consumerism, digital disruption had put pressure on traditional health care models paving way for new growth models including proliferation of Urgent Care Centers (UCCs) meant to provide episodic care and to treat non-emergency conditions. The UCC segment was expected to touch USD48 billion revenue mark in 2023. Walmart Health (Walmart) was all set to expand its in-store clinic model offering services such as primary and urgent care, labs, X-ray and diagnostics, dental, optical, hearing, behavioral health and counseling from about 30 (as of June 2023) to 74 locations by the end of 2024 across the US. Although Walmart centers were positioned to become Medicare Advantage providers with strong patient outcomes, it witnessed significant executive turnover, besides, faced challenges of rising and falling revenues in this segment. It remained to be seen how Walmart plans to navigate the changing health care landscape to its advantage amidst rising competition from the likes of Amazon, CVS and Walgreens.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2023.

Geographical setting

Region:
Americas

Featured company

Walmart Health
Type:
Public company
Industry:
Retail

Featured protagonists

  • Dr David Carmouche (male), Senior Vice President
  • Alan A Ayers (male), Senior Editor
  • Mark Pauly (male), Professor Emeritus at Wharton

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