What is Behind the Walmart and Humana Partnership and Why Should We Care?
Back in March 2018, the Wall Street Journal recently reported that Walmart plans to purchase Humana.
Humana was worth $37.5 billion at that time, and that purchase would be the largest acquisition so far for Walmart.
Our topic today is revisiting the "what and why" behind Walmart's purchase Humana. What are the strategic drivers behind this partnership and why should we care?
Let's examine three strong drivers pushing these two companies together:
1. Medicare Advantage (MA) is the future of healthcare.
Medicare Advantage is cutting healthcare costs and improving the quality of care. The industry forecast is that Medicare Advantage enrollment will rise from 20 million to 38 million by the end of 2025. That is a 50% market penetration.
Humana is already a key player in the Medicare Advantage market. They are launching a new brand called “Conviva” in its health clinics and related doctor practices in south Florida and Texas, states with a large number of senior citizens. So together, Walmart and Humana stand to rule the future healthcare world.
Above diagram sources: Medicare.gov; KFF: Medicare Advantage 2019 Spotlight: First Look. $6,700 maximum for in-network only. If out-of-network, there is a $10,000 maximum allowed.
2. Data is King!
Healthcare organizations that can accurately capture and analyze data, will lead the industry of the future.
Walmart and Humana already manage huge amounts of data. They have the know-how and technology to combine and leverage data from claims and retail platforms. Together, they will build a better 360-degree view of the consumer, which will deliver more meaningful and engaging experiences.
That view is essential to survival as Amazon is positioning itself as a potentially huge player in the healthcare space.
3. The future of care delivery is closer to our homes!
The healthcare model of the future brings together the best doctors and data and delivers care as close to the consumer's home as possible.
When Humana bought Kindred Healthcare last year, the golden price was Kindred at Home: 40,000 caregivers serving about 130,000 patients in their own homes every day. The strategy is to keep patients out of the hospital while providing top care for them in lower-cost outpatient settings or better yet, at home.
Kindred at Home generates $2.5 billion in annual revenue. Combine that with Walmart's footprint and now you should see the bigger picture.
What are your thoughts about this type of partnership? What should we consider before buying a Medicare Advantage product? Is care at home an appealing option for you?
I encourage you to watch my video on this topic.
Until next time, cheers!
Josué Batista is a business technology and strategist, solutions architect, international speaker, and writer with a concentration on digital health and emerging technologies, in particular, distributed ledger technologies (blockchain), artificial intelligence, and the internet-of-things. Schedule time with Josué to create and execute a strategic plan that takes advantage of Digital Business Transformation, improves the business value from your technology investments, and unleashed innovation for your organization, employees, customers.
Ld Director, Data Engineering (CVS Health)
1yThis makes so much sense to me now as I learn more on Value Based care and its rise for Medicare Advantage payers and providers
Retired Watershed Specialist/Environmental Educator at Lackawanna County Conservation District
1yWell I currently have Humana/Walmart Rx Part D and I can honestly say that I’ve never had worse service in my life. I just got off the phone with them for the fourth time this week. Last week it was 3 times for a total of almost 2 hours just trying to get 1 Rx filled. That doesn’t count the time I spent communicating with my Dr’s office. Each time I was on the phone with them they told me that they were expediting my order, then another week goes by and I get a phone call from them asking the same question I answered the week before. They are totally incompetent. I have 3 scripts with them and miraculously they have no trouble filling my two expensive orders but the $4 one seems to be impossible for them. However they always manage to double bill me for that one. I do not recommend them at all. My initial sign on period was just as bad but now I can’t switch until open enrollment.
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1yHow & why did @Walmart keep their doors open during the Wuhan lockdown & all smaller businesses forced to close their doors? Any chance all of this "stay at home" push & home delivery heading towards permanent house lockdowns?? Look at Wally's values and follow the money. No good for the working class will come of this.
Sales at Dillard's Inc.
2yDermatologists have not yet gotten my skin infection from selling shoes at Dillard's, from 2001 to 2003, cured, & some of those were through my Humana plan, in addition to Prudential, Aetna, & BCBS. I finally realized that curing me would prevent other people from getting my infection---- Why would they want to do that? It's also So Much fun to make fun of me, as I stare at them scared, worried, & confused as to why they are allowed to keep doing this to me---- destroying my physical & emotional well-being, unable to touch my grandchildren. It gets to the point that it seems futile to Even Try to get help--- but I promise you, with a firm touch, it is contagious. Then, there's the larger problem--- a Humana counselor asking me questions, and memories that were hypnotically put there jumping on queue to the forefront of my mind, to help obtain a false diagnosis--- that I was not only hypnotized, I think, to be, but to change my mental health so that I couldn't explain it---- hypnotically tortured by noises. Hordes of people went around making these noises. Waiters & waitresses slammed their hands down on my table at nice restaurants, neighbors moved out, & their replacements moved in, eager to make these noises. What a country.
Student at Harper College
2yBig brother is creeping in everywhere. If they know everything about you, one could say they have you under their thumb?!?!