Healthcare disruptors are learning that the industry cannot be managed like a shopping mall. Recent news of Walmart selling its MeMD virtual care program to Fabric, a telehealth startup, highlights this trend. Fabric, a one-year-old company, has partnered with major healthcare providers like OSF HealthCare, MUSC Health, and Intermountain Health. This move comes after Walmart announced the closure of its virtual care platform and many in-store health centers, signaling a shift away from retail primary care services.
This decision by Walmart follows a pattern of disruptors backing out of the retail primary care space due to challenges in turning a profit. Walgreens, CVS Health, and Rite Aid have all scaled back their healthcare plans in response to business struggles and the selling of pharmacies. Amazon has also recently announced plans to consolidate its virtual care and primary care services onto a single platform. Fabric’s acquisition of MeMD, which was acquired by Walmart in 2021, will allow them to expand and offer in-demand behavioral health services to their customers.
Fabric is positioning itself as an innovative healthcare technology company that provides exceptional patient care. CEO Aniq Rahman stated that the acquisition aligns with their vision to transform healthcare delivery across different payer organizations and employer groups. However, the challenge remains to create a retail primary care model that is both valuable and sustainable as healthcare services cannot be run like traditional retail stores. Eric Wicklund, Associate Content Manager and Senior Editor for Innovation at HealthLeaders notes that integrating retail strategies into the healthcare sector is ongoing struggle but can enhance patient experience if done effectively
