For those of us who have long called for a new healthcare delivery business model, Walmart Health represented a much needed alternative. Five years after opening its doors, however, Walmart Health has
Going up against an established industry is not easy, and Walmart understood the risks. At first, their healthcare model was a low-cost subscription service that didn’t rely on insurance. As they advanced into the healthcare market, however, they incorporated a more conventional insurance-based model, providing affordable care within the established insurance framework.
Walmart had five years of growth, collaboration with industry titans and a business model that addressed many of traditional healthcare delivery’s biggest problems. So, what happened?, the company cited the lack of a sustainable business model, and a “challenging reimbursement environment and escalating operating costs.” A few hurdles prevented Walmart Health from reaching profitability.