Wal-Mart has made two announcements in recent days that show
the retailer is moving aggressively to change the health care system—both as an
employer covering more than a million people and as a company looking to lift
its stagnant share price.
Washington that the company plans to increase
its number of in-store health care clinics to 2,000, up from 76, in the next five to
seven years, with 400 new clinics coming in the next two years.
“I think it will be a great opportunity for our business,”
Scott said. “But more importantly, they will provide something to our community
that is desperately needed: affordable access at the local level to quality,
affordable health care.”
Scott reiterated an announcement made last week of a
partnership between the retailer, Blue Cross Blue Shield of Arkansas and the
University of
Arkansas to develop ways
health care can be improved through the use of technology. Wal-Mart hopes to
streamline health care just as it did with its own supply chain.
“Health IT is perhaps the single largest opportunity to drive
cost out of the health care system,” Scott said during his keynote address. Then
he asked other employers to join Dossia. That group, founded by Wal-Mart, Intel,
BP, Pitney Bowes and Applied Materials, says employees of member companies will
have a personal health record by the end of the year.
The effort to use its purchasing power to reduce costs
through technology and the creation of health clinics that treat patients as
consumers are two ways Wal-Mart is trying to repair its economic fortunes,
reduce its own health care costs and make a public case that the market, not
government, can solve problems plaguing the health care system.
“The private sector can lead. The private sector can make a
difference,” Scott said.
He said Americans need to become better health care
consumers, and that Wal-Mart will help provide them with the tools to do
so.
Wal-Mart has also been
busy creating in-store clinics. Rather than hire a company that specializes in
clinics, Wal-Mart has tapped local health care providers. This model will help boost the
business of doctors in rural areas where Wal-Mart has a big presence. The
clinics will also help doctors who have lost some business to the forces of
globalization and employers that ship blue-collar jobs overseas or cut back on
health benefits. These local providers can also make referrals to area
doctors and hospitals.
As the health care debate gains more national attention,
groups coming together to stake out a position on the subject of reform continue
to proliferate.
One such group that Wal-Mart helped launch is called Better
Health Care Together. Other members include the Service Employees International
Union, Kelly Services, Intel and the Communications Workers of America. The
group is having a meeting in New
York next month, Scott said.
“This is too important for our country to be divided into two
camps,” he said.
But when it comes to health care, even CEOs concerned with
spiraling costs remain divided.
Safeway CEO Steven Burd is orchestrating his own group of
health-care-minded CEOs. Burd told Workforce Management that he does not
think Wal-Mart will be a member when the group is formally announced in
May.
“I think it’s a very broad-based coalition. We add companies
to it every week” Burd said.
—Jeremy Smerd