Retailers are dealing with a number of headwinds in healthcare in 2024. Walmart and Greenback Basic each just lately ended healthcare endeavors, and CVS Well being is reportedly on the lookout for a non-public fairness accomplice for Oak Road Well being (which it acquired in 2023). VillageMD, which is backed by Walgreens, is shuttering quite a few clinics.
Nonetheless, Mary Langowski, government vp and president of U.S. healthcare at Walgreens Boots Alliance, sees a robust future for retailers in healthcare.
“I occur to be very bullish on the function of retail in healthcare and albeit, having a really central function in healthcare,” she mentioned. “And a part of that’s as a result of over 80% of individuals need well being and wellness choices in a pharmacy and in a retail setting. Shoppers need the convenience, they need the comfort of it. And people are vital issues to remember, that demand is there.”
Langowski, who joined Walgreens in March, made these feedback throughout a Tuesday fireplace chat on the AHIP 2024 convention held in Las Vegas. She added that what the business is seeing shouldn’t be an “evolution” of whether or not retailers will exist in healthcare, however a shift round what the “proper mannequin goes to be.”
“We actually suppose that for those who take our core belongings, … we could be a actually good accomplice to not only one supplier entity however many, many supplier entities and payers throughout the US,” Langowski mentioned. “We’re all over the place. We’re locally, we’re digitally inclined. I believe a method for us is much less capital-intensive, capital-light and really scaled fashions.”
She additionally advised the well being plans within the viewers that she needs to collaborate extra. She mentioned she sees retail as a “actually vital entry level” within the healthcare system.
“We’ve individuals utilizing their pharmacists two instances greater than any physician and Medicare sufferers see us eight instances greater than their doctor,” Langowski declared. “We’re not doing sufficient collectively to benefit from these moments the place we will interact individuals and we will create interventions approach earlier of their healthcare illness state.”
Langowski famous that insurers are below quite a lot of stress, together with rising prices, regulatory points and challenges contracting with suppliers. Nevertheless, Walgreens’ belongings are “extremely complementary” to insurers’ belongings, she mentioned.
“We aren’t going to do what you do. You don’t do what we do, however we work rather well collectively,” she mentioned. “And what it’s going to take is being intelligent in regards to the industrial and financial mannequin and I imagine there are a number of methods to create win-win eventualities the place all people does properly. Most significantly, sufferers get more healthy they usually have a significantly better and far more seamless expertise with the system.”
Picture credit score: Walgreens
