Walmart Health is poised to broaden its footprint in the Lone Star State, with the opening of its first Houston location next week. This expansion comes despite construction-related setbacks that have delayed clinic openings in Phoenix and Oklahoma City until early 2025.
The retail giant had previously announced plans to nearly double its clinic presence by the end of 2024, aiming for a total of 75 locations. While these ambitious goals remain intact with an expected early 2025 completion, resource constraints have necessitated a temporary shift. Six clinics in the Phoenix area and four in Oklahoma City will have to wait until next year.
Undeterred, Walmart is forging ahead with its Texas expansion. Seven additional clinics are slated to open across the Houston metro area by year-end. The Dallas-Fort Worth region and the Kansas City market will also see new clinics, with 10 and 4 planned respectively.
“Walmart Health continues to deliver healthcare that is convenient and personalized to each patient,” declared David Carmouche, M.D., Walmart’s senior vice president of healthcare delivery. “We’re thrilled to be expanding into Missouri and deepening our presence in Texas this year as we remain committed to growing our footprint to over 75 locations by early 2025.”
Established in 2019, Walmart Health has grown to operate 48 clinics across Arkansas, Florida, Georgia, Illinois, and Texas. These locations offer a comprehensive range of services, including primary care, dental care, mental health services, X-rays, and other lab tests. Staffing includes physicians, dentists, behavioral health clinicians, and social workers. Additionally, the clinics leverage their connection to Walmart stores, facilitating access to resources like nutrition classes.
The foray by retail giants into primary care represents a growing trend. CVS Health, with its network of MinuteClinics within pharmacies, further solidified its healthcare presence by acquiring Oak Street Health in early 2023. Similarly, Walgreens boasts ownership of VillageMD and its associated primary care clinics. The online retail behemoth, Amazon, also joined the fray with its acquisition of One Medical earlier this year, underscoring the increasing interest of non-traditional players in the healthcare sphere.
As a result of this activity, estimates from consultancy Bain suggest that by 2030, a significant portion (around 30%) of the primary care market could be held by these non-traditional players. Retailers are strategically positioned to become the front door to the healthcare system for consumers. By integrating primary care capabilities, either through physical locations or telemedicine options, they can nudge patients towards additional services offered within their ecosystem, such as pharmacies, urgent care clinics, insurance plans, or even medical devices sold in-store.
This trend presents both challenges and opportunities for the healthcare landscape. While it promises increased convenience and accessibility for patients, the role of traditional healthcare providers and potential consolidation within the market warrant careful consideration.
(Hero image credit: Walmart Health)
