Retail Health Gaining Strength in a Competitive Market

Retail Health Gaining Strength in a Competitive Market

While I usually touch on emerging or existing legislation in my articles, I thought I’d pivot and write about something happening in the healthcare marketplace that has surprisingly little regulation or oversight at all.

That would be the growth of retail health – that is, clinical or healthcare services being offered in the retail setting, such as at clinics in pharmacies, grocery stores, or shopping centers.

Walmart, Walgreens, Amazon, and CVS are all jumping into the game, with significant investment and acquisitions happening in the past year.  

Retail health’s appeal to consumers is that basically, healthcare is provided like any other retail commodity. Retail health clinics offers convenient hours, walk-in or last-minute appointments, less-expensive services, and transparency in pricing. Retail health clinics are mostly staffed with physician assistants and nurse practitioners who in turn are offered regular hours and strong administrative support.

The forecast for retail health in this post-pandemic era is bright and sunny. According to an analysis by Bain & Company, retail health has the potential to grab as much as a third of the U.S. primary-care market by 2030. Indeed, one survey says that about two-thirds of Americans believe that five years from now, most primary-care services will be provided at retail health clinics.

The potential for growth is in one part energized by brand familiarity and loyalty. For example, over 40 percent of Americans shop at Walmart on a weekly basis, and nearly two-thirds of American adults have an active Amazon Prime membership.

Now, while retail health is making a move into primary care, recent action seems to indicate that they also may be using relatively inexpensive primary-care services as a loss leader for them to enter the chronic care arena. CVS recently bought Oak Street, which, yes, is primary care, but it is primary care for the Medicare crowd, whereas reimbursement will be value-based, and 9 out of 10 patients have a chronic condition. CVS has also bought Signify, a home health company.

In order to successfully manage chronic care, a healthcare entity needs to be able to track and communicate with patients, and establish a network of providers for successful continuity of care. Does retail health have that? Maybe not yet, but retail health clinics are digitally connected to the consumer, and they appear to be well-poised to move patients seamlessly between in-person care and virtual care.

Most importantly, retail health can afford to experiment (and maybe fail) with some of those experiments. Why? Because they are well-bankrolled by huge corporations.

As I mentioned, the retail health sector is remarkably unregulated. Most states do not issue facility licenses to retail health clinics, avoiding oversight by state departments of health. Only Massachusetts has regulations designed specifically for retail health; Massachusetts limits the clinics to a specific set of services. And in fact, one service that retail health clinics cannot provide in Massachusetts is primary care.

Stepping back, if we use the language of retail and capitalism, it has become apparent that in the next few years, hospitals and physicians are going to have to compete for a decreasing number of paying customers (that is, for commercially insured patients). More of the population is aging in or becoming eligible for government programs. Utilization of healthcare services is down 6 percent from pre-pandemic levels, while emergency-room visits are down 30 percent – the only increase in usage among healthcare services was in urgent care and hospital outpatient services.

And in this competitive environment, retail health is throwing its hat into the ring. It’s the Walmart-ing of American Healthcare.

Facebook
Twitter
LinkedIn

Matthew Albright

Matthew Albright is the chief legislative affairs officer at Zelis Healthcare. Previously, Albright was senior manager at CAQH CORE, and earlier, he was the acting deputy director of the Office of E-Health and Services for the Centers for Medicare & Medicaid Services.

Related Stories

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

I022426_SQUARE

Fracture Care Coding: Reduce Denials Through Accurate Coding, Sequencing, and Modifier Use

Expert presenters Kathy Pride, RHIT, CPC, CCS-P, CPMA, and Brandi Russell, RHIA, CCS, COC, CPMA, break down complex fracture care coding rules, walk through correct modifier application (-25, -57, 54, 55), and clarify sequencing for initial and subsequent encounters. Attendees will gain the practical knowledge needed to submit clean claims, ensure compliance, and stay one step ahead of payer audits in 2026.

February 24, 2026
Mastering Principal Diagnosis: Coding Precision, Medical Necessity, and Quality Impact

Mastering Principal Diagnosis: Coding Precision, Medical Necessity, and Quality Impact

Accurately determining the principal diagnosis is critical for compliant billing, appropriate reimbursement, and valid quality reporting — yet it remains one of the most subjective and error-prone areas in inpatient coding. In this expert-led session, Cheryl Ericson, RN, MS, CCDS, CDIP, demystifies the complexities of principal diagnosis assignment, bridging the gap between coding rules and clinical reality. Learn how to strengthen your organization’s coding accuracy, reduce denials, and ensure your documentation supports true medical necessity.

December 3, 2025

Proactive Denial Management: Data-Driven Strategies to Prevent Revenue Loss

Denials continue to delay reimbursement, increase administrative burden, and threaten financial stability across healthcare organizations. This essential webcast tackles the root causes—rising payer scrutiny, fragmented workflows, inconsistent documentation, and underused analytics—and offers proven, data-driven strategies to prevent and overturn denials. Attendees will gain practical tools to strengthen documentation and coding accuracy, engage clinicians effectively, and leverage predictive analytics and AI to identify risks before they impact revenue. Through real-world case examples and actionable guidance, this session empowers coding, CDI, and revenue cycle professionals to shift from reactive appeals to proactive denial prevention and revenue protection.

November 25, 2025
Sepsis: Bridging the Clinical Documentation and Coding Gap to Reduce Denials

Sepsis: Bridging the Clinical Documentation and Coding Gap to Reduce Denials

Sepsis remains one of the most frequently denied and contested diagnoses, creating costly revenue loss and compliance risks. In this webcast, Angela Comfort, DBA, MBA, RHIA, CDIP, CCS, CCS-P, provides practical, real-world strategies to align documentation with coding guidelines, reconcile Sepsis-2 and Sepsis-3 definitions, and apply compliant queries. You’ll learn how to identify and address documentation gaps, strengthen provider engagement, and defend diagnoses against payer scrutiny—equipping you to protect reimbursement, improve SOI/ROM capture, and reduce audit vulnerability in this high-risk area.

September 24, 2025

Trending News

Featured Webcasts

Top 10 Audit Targets for 2026-2027 for Hospitals & Physicians: Protect Your Revenue

Stay ahead of the 2026-2027 audit surge with “Top 10 Audit Targets for 2026-2027 for Hospitals & Physicians: Protect Your Revenue,” a high-impact webcast led by Michael Calahan, PA, MBA. This concise session gives hospitals and physicians clear insight into the most likely federal audit targets, such as E/M services, split/shared and critical care, observation and admissions, device credits, and Two-Midnight Rule changes, and shows how to tighten documentation, coding, and internal processes to reduce denials, recoupments, and penalties. Attendees walk away with practical best practices to protect revenue, strengthen compliance, and better prepare their teams for inevitable audits.

January 29, 2026

AI in Claims Auditing: Turning Compliance Risks into Defensible Systems

As AI reshapes healthcare compliance, the risk of biased outputs and opaque decision-making grows. This webcast, led by Frank Cohen, delivers a practical Four-Pillar Governance Framework—Transparency, Accountability, Fairness, and Explainability—to help you govern AI-driven claim auditing with confidence. Learn how to identify and mitigate bias, implement robust human oversight, and document defensible AI review processes that regulators and auditors will accept. Discover concrete remedies, from rotation protocols to uncertainty scoring, and actionable steps to evaluate vendors before contracts are signed. In a regulatory landscape that moves faster than ever, gain the tools to stay compliant, defend your processes, and reduce liability while maintaining operational effectiveness.

January 13, 2026
Surviving Federal Audits for Inpatient Rehab Facility Services

Surviving Federal Audits for Inpatient Rehab Facility Services

Federal auditors are zeroing in on Inpatient Rehabilitation Facility (IRF) and hospital rehab unit services, with OIG and CERT audits leading to millions in penalties—often due to documentation and administrative errors, not quality of care. Join compliance expert Michael Calahan, PA, MBA, to learn the five clinical “pillars” of IRF-PPS admissions, key documentation requirements, and real-life case lessons to help protect your revenue.

November 13, 2025

Trending News

Happy National Doctor’s Day! Learn how to get a complimentary webcast on ‘Decoding Social Admissions’ as a token of our heartfelt appreciation! Click here to learn more →

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 1 with code CYBER25

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24