Wal-Mart opens co-branded clinics

Wal-Mart Thursday took another step toward fulfilling its strategy of expanding in-store health clinics—announced nearly one year ago—when it disclosed locations for a co-branded concept called “The Clinic at Wal-Mart.”

Atlanta, Dallas and Little Rock, Ark. will be the first cities to receive the new clinics, which Wal-Mart said will be co-branded with local hospitals and clinic operators. Wal-Mart began opening clinics in stores several years ago and there are currently 77 in operation, however they generally bear the name of the clinic rather than Wal-Mart. The new clinics will carry the Wal-Mart name and that of the operator. For example, in Little Rock, where Wal-Mart has partnered with St. Vincent Health System, the name of the clinic will be, “The Clinic at Wal-Mart, owned and operated by St. Vincent Health System.” In Atlanta and Dallas, where Wal-Mart has partnered with RediClinic and unnamed local hospitals, the clinics will be called, “The Clinic at Wal-Mart owned and operated by RediClinic.”

If the name sounds a little cumbersome it is nothing compared to the sorry state of the nation’s health care system where outdated record keeping systems, runaway costs and uneven access to care have created a new business opportunity for Wal-Mart. Wal-Mart expects to have 400 clinics in stores by 2010 and, based on comments made by president and ceo Lee Scott last April when the concept of aligning with hospitals was first announced, within five to seven years there could be as many as 2,000 clinics in stores.

It may not be everyone’s idea of health care to receive medical attention inside a busy Wal-Mart store, but for many people its is a desirable alternative to seeking treatment at an emergency or not seeking treatment at all. Wal-Mart reports that 55% of the people who use its clinics don’t have insurance.

These customers also benefit from pricing transparency as clinic operators are required to clearly post prices for services and treatments. That’s not the case elsewhere in the health care system where consumers seldom know what they are being charged beyond the amount of a co-pay or deductible. The irony is those without insurance who are often the least able to afford treatment are also typically charged rates substantially higher than the amounts paid by insurance companies who are able to extract steep pricing discounts from providers.