What's Next In Retail Healthcare

Retail healthcare is experiencing yet another shift, with major players like Walmart and Humana redefining their strategies to better serve specific patient populations. Recently, Humana’s healthcare services business, CenterWell, announced plans to lease and open senior-focused primary care centers at 23 former Walmart Health clinic locations across Florida, Georgia, Missouri, and Texas. 

The Transition: From Walmart Health to CenterWell

Humana’s new primary care centers will operate under the “CenterWell Senior Primary Care” and “Conviva Care Centers” brand names. These centers are designed to cater to the unique needs of older adults, providing them with greater access to primary care services. Located next to Walmart stores, these centers will occupy clinical office spaces previously used by Walmart Health.

The financial details of this transaction have not been disclosed, but Humana has stated that the centers are expected to be equipped, staffed, and operational by the first half of 2025. This timeline aligns with Humana’s ongoing efforts to enhance senior care services across the United States.

Walmart’s Strategic Shift

This development follows Walmart’s decision to close its 51 Walmart Health centers in five states and its Walmart Health Virtual Care telehealth business. Walmart cited the lack of a sustainable business model in primary care as the primary reason for these closures. The company faced challenges in recruiting healthcare professionals and physicians, exacerbated by a nationwide healthcare staffing crisis and a tight labor market.

Despite these challenges, Walmart’s decision to lease its clinical spaces to a well-established healthcare organization like CenterWell shows that they are not ready to give up the space. It allows Walmart to focus on its core health and wellness businesses, such as Pharmacy and Optical, while ensuring that the clinical spaces continue to serve the community’s healthcare needs.

Humana’s Background in Senior Care

Humana brings significant expertise in senior care to this partnership. As one of the largest providers of privatized Medicare healthcare coverage in the U.S., Humana is equipped to meet the needs of seniors. The health insurer can include these primary care centers in its health plan networks, incentivizing seniors to utilize these services.

Dr. Sanjay Shetty, president of CenterWell, expressed enthusiasm about the partnership with Walmart, highlighting the opportunity to offer seniors greater access to integrated care. The new primary care centers are specifically designed for seniors, featuring dedicated entrances and easy parking to enhance accessibility.

Implications for Urgent Care Centers

The transition of Walmart Health clinic locations to CenterWell primary care centers underscores a broader trend in retail healthcare: the growing emphasis on specialized care for specific patient populations. This shift could have several implications for Urgent Care:

  1. Increased Competition: With CenterWell’s focus on senior care, urgent care centers may face increased competition for senior patients. Urgent Care centers may need to adapt by offering more senior-friendly services or partnerships with organizations specializing in geriatric care.

  2. Collaborative Opportunities: Urgent Care centers could explore collaboration opportunities with specialized primary care providers like CenterWell. By working together, they can offer a more comprehensive continuum of care for patients, particularly those with chronic conditions or complex healthcare needs.

  3. Enhanced Patient Experience: The focus on accessibility and patient-centric design at CenterWell centers sets a new standard for patient experience. Urgent Care centers can learn from these practices and implement similar improvements to attract and retain patients.

  4. Workforce Challenges: The staffing challenges faced by Walmart highlight an ongoing issue in the healthcare industry. Urgent Care centers must prioritize recruitment and retention strategies to ensure they have the necessary healthcare professionals to meet patient demand.