Wal-Mart alters clinic strategy

BENTONVILLE, Ark. —Wal-Mart is expanding its reach into the healthcare sector with its plans to operate 400 co-branded, in-store health clinics by 2010.

The move comes on the heels of the retailer’s announcement that it plans to offer its own PBM services to “select employers” and the closure of 23 CheckUps in-store health clinics in Wal-Mart stores in four Southern states.

“We believe Wal-Mart is changing its retail clinic strategy on the heels of the closure of CheckUps. The company now requires that clinic operators within its stores must either be a hospital system or be closely affiliated with one,” stated Deborah Weinswig, Citigroup analyst, in a recent research note.

The big-box retailer is partnering with clinic operator RediClinic and local hospital systems to open the co-branded clinics, dubbed The Clinic at Wal-Mart, in 200 Wal-Mart supercenters. Wal-Mart also has signed a letter of intent to partner with St. Vincent Health System, a part of the Catholic Healthcare Initiatives system, to open four co-branded clinics in Little Rock, Ark.

The Clinic at Wal-Mart, owned and operated by St. Vincent Health System, is expected to open in Little Rock by the end of April, as will the clinic owned and operated by RediClinic in association with a local hospital system in Atlanta. By the summer, Wal-Mart expects to open co-branded clinics with RediClinic and a local hospital system in Dallas.

There currently are 77 limited-scope medical clinics opened in Wal-Mart stores across 12 states through several partnerships with independent healthcare clinic operators.

Not only will the clinic expansion likely drive new prescription customers and bolster front-end sales, but it also will give customers greater access to a low-cost option for the treatment of common ailments and preventive care, such as health screenings, medical tests and vaccinations. Weinswig noted that more than half (55 percent) of its in-store clinic patients are uninsured. For those who are insured, Wal-Mart plans to accept health insurance plans, including Aetna, Humana, Blue Cross Blue Shield and others.

“Wal-Mart is giving operators a turnkey solution: offering a 500-plus-square-foot clinic with all the bells and whistles. The operator will get major brand visibility and will not have to negotiate for space or location, deal with building permits, contractors or suppliers. Meanwhile, Wal-Mart can standardize the clinic experience no matter what store patients visit,” Weinswig stated.