Today in #Healthin2Point00, Jessica is not impressed by my stock trading and it’s all Walmart’s fault (well, Amazon’s too)! Part of the reason for that is Walmart buying a no-name telehealth company–well it has a name but not one anyone knows. There’s a SPAC exit on the horizon for fast growing remote clinical trials company Science37, and funds for Vim which does scheduling (we think!), and Zoe which sells a diet so expensive you might actually stick to it!–Matthew Holt
By KIM BELLARD
When Walmart announced earlier this summer that it was opening an insurance agency to sell Medicare-related products and services plans, I thought, “that’s it?” When Walmart announced later in the summer that it was partnering (first with Microsoft, then with Oracle) in the bid to buy TikTok, I thought, “well, isn’t that interesting?” And when Walmart announced a few days ago that it was partnering with Clover Health to offer Medicare Advantage plans, I thought: “it’s about time.”
You know Walmart. 265 million people (worldwide) shop at its stores each week. Ninety percent of Americans live within 10 miles of a Walmart store. It is estimated that 95% of Americans shop at Walmart during the year. In over 200 U.S. markets, it accounts for at least 50% of grocery sales. It is the fifth largest pharmacy chain by revenue.
And Walmart has been shaking up healthcare for some time. Way back in 2006, it introduced its $4 Prescriptions program that upended pharmacy pricing. In 2008, it started offering in-store retail clinics, initially in partnership with hospitals and now operates on its own.Continue reading…
By JESSICA DaMASSA, WTF HEALTH
A startup PBM? Partnered up with Walmart to bring “everyday low prices” to prescription drug pricing? Is this too good to be true? A.J. Loiacono, founder & CEO at Capital Rx, gives us a quick primer on “Pharmacy Benefit Managers” (PBMs) and why they’ve become known for the element of mystery they bring to prescription drug pricing. With three big PBMs (CVS’s Caremark, Express Scripts, and UnitedHealth’s OptumRx) controlling three quarters of the total market, it’s no surprise that VC-backed challenger companies in this space are rare. So, how does A.J. believe Capital Rx will shake things up? Learning about this new kind of tech-enabled, customer-focused PBM not only inspires hope for a clear future of prescription drug price transparency, but also makes one wonder about the new vision for American healthcare unfolding at Walmart.
Episode 133 of Health in 2 Point 00 is brought to you by the letter P — that’s P for PBMs, of course. In this episode, Jess and I talk about Genome Medical extending their series B and getting another $14 million on top of the $23 million they already raised for their remote genetic counseling services, the FCC adding another $198 million to their rural health program, bringing the funding to a whopping total of $802 million, Anthem’s PBM IngenioRx acquiring pharmacy startup Zipdrug, and Capital Rx, a startup PBM, announced a deal with Walmart. —Matthew Holt
On Episode 128 of Health in 2 Point 00, Jess and I talk about Proteus filing for bankruptcy, Walmart buying the tech from CareZone for prescription drug management for an unconfirmed $200 million, Kyruus raising another $30 million for referrals and scheduling for large health systems, Headspace raising another $47.7 million, and CareAcademy raising $9.5 million in a Series A to provide online training for professional caregivers for seniors. —Matthew Holt
Today on Health in 2 Point 00, Jess is in Berlin for the Bayer G4A Signing Day where they’re announcing which startups are going to get deals and Glen Tullman is doing a fireside chat with Eugene Borukhovich. In Episode 97, Jess and I talk about Walmart and fertility. Fertility benefits startup Progyny files for IPO and I’m blown away by this relatively new company. Another startup—Halle Tecco’s Natalist—raises $5M to send care boxes to help women get pregnant. Finally, Jess has a conspiracy theory, noticing that Walmart is sneaking into all aspects of health tech… Walmart is expanding Grand Rounds, partnering with Doctor On Demand and HealthSCOPE to offer telehealth to their employees, Sam’s Club is offering $1 telehealth visits to members, and they just announced a partnership with Embold Health for employees in the southeast. Finally, I’ll be at Society for Participatory Medicine next week in Boston—see you all there. —Matthew Holt
As I’m back from a week’s vacation, Jessica DaMassa is slowly pulling me back into the groove with questions about Walmart dumping Castlight, yet more money for telemedicine with MDLive adding $50m, and get.health sponsoring a few tickets to health2con. All in 2 minutes, with a bit of filler!–Matthew Holt
Walmart (WMT) is in talks with Humana (HUM) about a relationship enhancement, possibly an acquisition. The two already know how to work together in alliances (narrow pharmacy network, marketing collaborations, points programs). If a new structure is needed, WMT and HUM must be considering a major expansion of scope or a set of operating models where contributions are difficult to attribute and reward (e.g. joint asset builds). What is on their minds? Beyond any interim incremental moves, what could be the endgame?
Catching convergence fever
Horizontal combinations among the top five health plans have arguably reached the regulatory “permissible envelope.” But provider combinations continue apace, enhancing ability to execute on value-based care to be sure, but also increasing negotiation leverage relative to payers. Further, Amazon’s (AMZN) interest in healthcare is gaining momentum but the specific goals are still mysterious, leaving many incumbents to imagine red laser dots are on their foreheads.
Accordingly, health plans are seeking defensible terrain in convergence combinations: CS & Aetna (CVS-AET), Cigna & Express Scripts (CI-ESRX), Anthem’s PBM insourcing and growing attention to CareMore (United Healthgroup [UNH] has been ahead of the curve as usual: but their recent SCA and DaVita medical group acquisitions have clarified for the market the scope of its ambitions for OptumCare). Of course, each of these moves just contributes to the uncertainty about the new competitive paradigm, driving more land grabs in response. I view the WMT-HUM discussions as part of these developments.
Jessica DaMassa asks me about digital health funding, Walmart and PillPack, Blockchain and my sweater — not in that order, but all in less than 2 minutes. Bonus–Farzad Mostashari’s bow tie makes a twitter appearance! — Matthew Holt
For Episode 14, Jessica DaMassa asks me all the questions she can about health & technology in 2 minutes. On the docket today, Walmart & Humana, MyFitnessPal’s huge data breach, and Apple in health tech (again!)–Matthew Holt