In April this year, Walmart announced that all of its 51 health clinics in the United States will close their doors. The supermarket chain does not see a sustainable business model in them. Over the past five years, the chain has invested tens of millions of dollars in the concept. Just five years ago, supermarket chain Walmart opened the first Walmart Health in Dallas, USA. For a relatively low fee you could use - among other things - the family doctor and the dentist, as well as have your health checked. The plan was to become a major player in health care in the United States.
And Walmart is not the only one closing its doors. American drugstore chain Walgreens and other big names that had set up health clinics are also closing those clinics again. Timothy Hoff, professor of management, health care systems and health policy at Northeastern University in the United States, has an idea why.
Expanding too quickly
According to Hoff, companies have wanted to grow too fast. However, because of the low margins in healthcare, that is not feasible. Inflation has been huge in recent years, causing costs for staffing and renting or buying premises to rise sharply, while margins have remained low and thus profits have lagged.
Still, Hoff is surprised that companies are giving up so quickly. Several years ago, they saw opportunities as there was a growing shortage of physicians. They were convinced they could conquer the healthcare industry and make a long-term living there.
Privatized health centers have a right to exist
According to Hoff, there is indeed a place for these types of low-threshold privatized health centers. It just needs a smarter approach. For example, he suggests opening six health centers in a region and linking them to a general practice. That way, people can go to a health center for a large portion of their problems and still see a general practitioner if necessary.
He also says there should be more use of virtual care and wearable technology. If people have enough tools in their homes to monitor their health, they might be willing to pay for a subscription to monitor their vitals and conditions. That is also primary care, according to Hoff, but in a different form.
Health Arena
Belgian company In4Care is also working on a completely new healthcare concept: the Health Arena, the health center of the future. According to Nico de Fauw, CEO and Matchmaker of In4Care, the current healthcare system is completely outdated, giving innovations no real chance.
In4Care and its network partners want to change this by developing a new healthcare system that focuses on prevention and health promotion with the goal of keeping people healthy as long as possible. When fewer people get sick, fewer people call on the health care system as well, ultimately reducing the shortage of health care personnel.
