Workweek May 13, 2023
By Jared Dashevsky, MD

Giant retailers like Amazon, Walmart, and Dollar General are venturing into the $4.2 trillion healthcare industry.

Why would retailers be so attracted to this industry?

In this article, I’ll delve into retailers’ motivations, highlight major players, and discuss the implications for patients, physicians, and the healthcare system.

Why are Retailers Entering Healthcare?

Prominent retailers are investing heavily in the healthcare industry to claim a share of the $4.2 trillion market, focusing on total-cost value-based care. In this model, physicians receive a capitated rate to manage the entire cost of care for their patients, adjusted for patient health risks and physician performance scores.

Medicare Advantage (MA) centers on this care model, with traditional Medicare and commercial insurers gradually adopting it. The...

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