Behind Retailers' Healthcare Strategies, Operational Know-How
On the question of timing, there are a couple of mile markers that are worth keeping in mind. An important on is 2017 when states can open the public exchanges to employers. Employers are also looking at private exchanges and this becomes very relevant because that is more and more individual retail customers shopping for healthcare and when you flip that business model from wholesale to retail that is when you see this changing dynamic pick up speed.
HLM: Do you foresee retailers acquiring hospitals or other traditional venues?
Connolly: It's been widely reported that Walgreen's is running three ACOs right now. I don't know if that means they want to run 300 ACOs but it is interesting that they are experimenting with that. CVS is a licensed Medicaid provider in the state of South Carolina, at 28 CVS pharmacies. Overall we are seeing experimentation. And this is a real testing period for these players to see what they might be good at.
John Commins is a senior editor with HealthLeaders Media.
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