One year after retail health expansion reached a fever pitch, this week’s graphic takes stock of disruptors’ care delivery strategies. After Walmart, Walgreens, CVS Health, and Amazon made significant retail health investments into 2023, their fortunes and strategies diverged significantly in 2024. Walmart announced in late April the shuttering of Walmart Health, just weeks after touting further expansion. Amid broader cost-cutting efforts, Walgreens reported plans to close VillageMD clinics and Walgreens pharmacies in recent months, and is even considering a sale of its stake in VillageMD in light of persistent pressure from investors. CVS is also struggling to leverage its care delivery assets amid cost constraints and a strategic reckoning. The future path CVS takes remains unclear, as it is reportedly both seeking a private equity partner to expand Oak Street Health and considering a breakup of key business units. Amazon is the last of these disruptors to be holding course by steadily increasing its retail health investments. One Medical’s footprint grew significantly in the first year after the Amazon acquisition, and its membership rolls were presumably given a boost by the Prime discount on memberships (although Amazon does not publicly disclose its enrollment). With Amazon and any other primary care retailer that stays in the game, health systems may find willing and able partners for their access strategies, as referral relationships could drive volumes and boost revenues for both parties.
