May 5, 2022 – Major retail brands are pushing into the primary care space, attempting to capitalize on a a different form of market share. A December 2021 study published in Health Affairs showed that from 2014 to 2018, hospital and health system ownership of physician practices increased by 89%, from 24% to 46%. But increasingly, health systems are competing for the physician market with health insurers, drugstore chains and other retailers.
Brands like Amazon, CVS, and Walgreens are continuing to invest in primary care services, while Dollar General, Best Buy, Walmart are making the first forays into the primary care space within the last couple of years.
All that said, independent practices, such as Austin Regional Clinic, based in Austin, Texas, remain strong. “Our advantage is being local,” says CEO Anas Daghestani, M.D. “Healthcare is still local, and there are pieces you can solve by providing a digital experience or applying [artificial intelligence]. But at the end of the day, patients seek the relationship, local access and market knowledge.”
Read more in the May issue of Repertoire.