USA – Walmart and healthcare giant UnitedHealth Group are linking up in a decade-long program to provide preventive care for people aged 65 and up, and virtual healthcare services for all age groups, according to Reuters reports.
The 10-year partnership represents Walmart’s latest push into healthcare and could help the retail giant better compete with CVS Health and Walgreens Boots Alliance.
Walmart’s clinics could get a boost of new customers from UnitedHealth’s Medicare Advantage members, while UnitedHealth gains access to the largest US retailer’s footprint and a venue to enroll more people, Evercore ISI analysts Mike Newshel and Elizabeth Anderson said in a research note.
Walgreens last October invested $5.2 billion in primary-care provider VillageMD, which has more than 200 locations across 15 markets.
Walmart’s effort with UnitedHealth will target common ailments among aging Americans such as heart disease and diabetes.
The focus will be on value-based healthcare, a model in which hospitals and doctors’ offices are reimbursed for the care they provide through multiple Medicare Advantage plans.
The value-based care partnership will start next year with 15 Walmart Health locations in Florida and Georgia, and expand into new geographies over time, according to a release.
Medicare Advantage plans are run by private insurers and are an alternative to original Medicare, the federal government’s health insurance plan for seniors.
The collaboration will initially exclude coverage for members under the original Medicare.
Unlike traditional fee-for-service models, in which health insurers pay doctors a fee for each service provided, value-based health-care payments are tied to measures of a patient’s health.
The model typically includes dietary guides, cancer screenings, and frequent doctor visits.
The focus will be on value-based healthcare, a model in which hospitals and doctors’ offices are reimbursed for the care they provide through multiple Medicare Advantage plans.
“We expect that through this partnership, we would grow to serve hundreds of thousands of seniors,” Dan Schumacher, UnitedHealth Group chief strategy and growth officer, said.
“Our goal is to make (healthcare) accessible and keep it affordable using these solutions, particularly in these medically underserved communities,” Dr. Cheryl Pegus, executive vice president of Health and Wellness at Walmart, said.
Walmart already provides physicians, community health workers, behavioral-health therapists, and nurse practitioners to help serve seniors who are “already going to buy other products” at Walmart’s health facilities, she said.
Walmart’s healthcare personnel will be able to use Optum, a health services company owned by UnitedHealth Group, which gives providers data analytics on patients.
The collaboration also includes the expected launch of a Walmart and UnitedHealth Group co-branded Medicare Advantage plan in Georgia.
CVS Health is currently overhauling its store network in order to include more health services, such as physician-led primary care centers with integrated virtual and home assets.
After an extended bidding war with other potential buyers, including UnitedHealth, the Rhode Island-based healthcare company agreed to acquire home healthcare firm Signify Health for US$8 billion.
Meanwhile, Walgreens plans to open 200 co-branded primary care clinics with VillageMD this year and recently completed a US$330 million majority stake in at-home care technology platform CareCentrix.
Walmart Health’s inclusion of virtual care services in its Choice Plus PPO plan comes months after UnitedHealth announced plans to expand its virtual care offerings, as well as testing and screening services, for its members in 2023.
Walmart and UnitedHealth Group had partnered in January to provide free, at-home COVID-19 tests.
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