Pressure from lower-priced healthcare options has already been hitting hospitals’ bottom lines. If Walmart’s early talks to acquire Humana come to fruition, that pressure would only intensify, according to the Wall Street Journal.
WSJ was the first to report Walmart—the world’s largest company by revenue—was looking to buy the $37 billion Humana. It would the largest of the vertical integrations proposed over the last few months which could all lead to keeping more patients out of the hospital. With inpatient admissions already an area of concern, Walmart’s massive retail presence could also siphon away more profitable outpatient business from health systems.
“What worries us is death by a thousand cuts,” said Randy Oostra, president and CEO of ProMedica, a Toledo, Ohio-based hospital system. “Another deal and another deal.”
Unlike other outside companies touted as healthcare disruptors, Walmart has a history of a “very sophisticated negotiator” on the care it provides for employees. Its experience with selective direct contracting with hospitals could inform a strategy to expand into care delivery.
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John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.