Pharmacies and insurers are increasingly competing to hire doctors and nurse practitioners directly as they move deeper into primary health care delivery.
Running news: latest example is CVS Health’s latest plan is to reduce its retail locations as it pours more resources into its digital health delivery and health center locations.
why it matters: Primary care is the starting point for all other points of health care. Companies that have more ownership of those interactions are providing convenience to consumers, while also standing to make more money.
big picture: CVS said earlier this month that it needed to hire doctors To fulfill its vision of becoming a one-stop shop for health care services.
- Walgreens Boots Alliance also said it has recently been investing billions in new clinics.
- Two major health insurance companies, UnitedHealth Group and Humana, have increasingly purchased physician offices over the years.
- And even genetic testing firm 23andMe is joining the mix. Lemonade Health acquisition, a virtual primary care company.
state of play: A vast majority of family medicine physicians still work in practices that are owned by a hospital or yourself,
- But the pandemic inspired people Use non-traditional forms Care, including retail clinics and virtual services, has prompted companies such as CVS and Walgreens to hire doctors in those settings.
What are they saying: COVID-19 vaccines and tests had a “halo effect” on Walgreens retail sales, CEO Rose Brewer told CNBC.
- CVS CEO Karen Lynch said at the company’s last, “Primary care is a small component of overall medical costs… earnings call,
- Lynch also added that the company, which owns health insurer Aetna, is taking Aetna members to CVS clinics.
Bottom-lineThe gold rush for doctors and advanced practitioners is about meeting patients where they are in an effort to capture more consumer healthcare and retail dollars.