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(2009 FMS-PCS) The "Wal-mart-ization" of healthcare

By Greg Pawson posted 04-28-2009 08:33

  
On Sunday, Joe Quinn (Senior Director for State Healthcare Policy at Wal-Mart) gave a keynote address on "How Wal-Mart is Reforming Healthcare".  Mr. Quinn's presentation focused on healthcare benefits for their employees, along with efforts such as retail clinics and lower prescription drug costs.

As a group practice administrator, I am both intrigued and concerned to hear about Wal-Mart dipping its toe into my industry.  I asked around afterwards to find out what other people thought of the speech, and the replies were all over the board.  Some people loved it, other people hated it, but more than anything else, Mr. Quinn made us all think.

When I think of Wal-Mart, I think of a company that excels at wringing out efficiencies in their supply chain and their workflow processes, and this is what they bring to the table in healthcare.  My personal opinion is that this is why they were able to score such an easy "win" in the area of prescription drug costs (an area filled with inefficiencies and middlemen).  Retail clinics have been more of a challenge, but if Wal-Mart is successful in lobbying for political reform, who knows what they could do in this area.

What do you think?  Are we all destined to wear blue vests with little smiley faces on them?  Will high-quality, integrated health care delivery systems succeed in fending off the Wal-Marts?  And in the midst of all this change, can independent physician groups survive and thrive in an integrated system?

-Greg
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05-04-2009 12:31

The WSJ Health Blog has a new entry about how Wal-Mart is competing against the pharmacy benefit managers. Unlike retail clinics, I think that this is an area which is ripe for innovation and it is a sweet spot for a company like Wal-Mart.
http://blogs.wsj.com/health/2009/05/04/wal-mart-tries-to-step-on-pharmacy-benefit-managers-turf/

05-01-2009 14:21

Many thanks to Greg for blogging about the FMS conference for those of us who weren't able to attend!

04-29-2009 23:39

Several "retail clinic" sites have already failed. I really don't think that very many people outside some in MGMA membership understand how U.S. healthcare is financially structured.
I don't see this model as financially viable except for two major advantages: skimming ($0.00 of charity care) and cash flow

04-29-2009 13:39

CAUTION: CONTROVERSIAL SUBJECT MATTER
If your personal value-system and political orientation support the concept of competition and free-market solutions to our health-care challenges, it seems as if you have to be OK with Walmart's entry into the market. The theory is that the consumer (the patient) is the best judge of service and quality.
It seems to me that the only folks who have a legitimate gripe about Walmart's entry into the market are those who do not believe that free markets are the solution to some of our biggest health care challenges (such as access and cost). I am one of those who have concerns about the ability of free markets to solve the access challenge. But even I think that Walmart's entry into the market is good for a large set of consumers in a society whose value system does not currently support the concept of universal healthcare (note I did not say single-payer healthcare.)

04-29-2009 09:39

Two articles express my perspective on Wal-Mart's EMR sales offerings. You can read "EMR Success Doesn't Just Come in a Box" at http://blog.cokergroup.com/?p=824 and "Thoughts on Wal-Mart and EMR" at http://blog.cokergroup.com/?p=848.

04-29-2009 08:29

maybe my thought of retiring and working at wal-mart won't be so far-fetched

04-28-2009 16:30

And don't forget that WalMart is selling its own EMR product, complete with Dell hardware. I have not seen the product - or even a review - but it is marketed as a low-priced bare bones product for smaller practices.

04-28-2009 09:15

Walmart features that physicians could emulate:
Open 24/7 at the convenience of patients.
One stop shopping - All MD specialties under one roof with instant scheduling.
Lab & imaging onsite-no waiting.
No one leaves without paying.
If ya can't get it here, it ain't worth gettin.