Telehealth is the market that has probably surged the most during the COVID-19 outbreak sometime 4 years ago. McKinsey stated that the utilization of telehealth has stabilized at levels 38X higher than before the pandemic.
Its usage has stabilized and doesn’t show a growth that dramatic since (as there is no incentive that big possible), but the level of its use is much higher than pre-pandemic. This environment creates extra opportunities for new players in the market.
Giant retailers that already have services and departments are now gladly offering convenient and accessible telehealth solutions to the giant pool of their customers.
In this blog post, we’re going to explore telehealth services by retailers, the ways they usually come to this healthcare department, the reasons behind it, the scale the companies are involved in, and retailers’ role in the future of telehealth.
Elinext is a software development company, for us this trend represents an exciting opportunity to develop custom telehealth software that can power the future of healthcare delivery. Our portfolio includes several telehealth projects that have certain success in their niches. Contact us to get a free quote for your retail company.
Introducing Main Players
Walmart, CVS, and Amazon One Medical are among the biggest retail chains incorporating telehealth services. Consumers have access to these retailers’ services. Virtual consultations, remote monitoring, and prescription writing are among the most common offers by these and other retailers.
Walmart: Trouble in Paradise?
Walmart Health Virtual Care has existed since 2019 when the company acquired MeMD (originally founded in 2010). MeMD was first aimed at virtual care. Despite expanding its services range, the retail giant has struggled to recruit the required number of healthcare professionals to satisfy the staffing needs
Despite the rapid expansion into the sector, the retail giant reportedly struggled to recruit and retain healthcare professionals, spurred by staffing issues from the pandemic. However, they do proudly claim that the company “provided peace of mind and quality care to millions of members in times of uncertainty”.
Walmart Health was announcing expansion that turned out to be not happening to the planned scale. 28 new Walmart Health centers were planned in 2024, bringing the total number to 75 locations across the nation in seven states. Then their goals changed, and it was reported just 22 new locations were expected.
This is still a good sign considering virtual care is in high demand, and the company is growing. One of the factors that stand in the way of growth is, perhaps, stiff competition in the sector, which includes massive growth of the direct competitor Amazon One Medical.
CVS
CVS Health, through its MinuteClinic, offers telehealth visits through its app, allowing customers to connect with nurse practitioners and physicians for minor illnesses and preventive care.
CVS’s strong presence in neighborhoods across the US makes it a convenient location for health services. The company sees telehealth as a natural extension of its in-person MinuteClinics, enhancing accessibility and reducing healthcare costs.
In 2020, CVS saw a 600% increase in telehealth visits, driven by the COVID-19 pandemic. The company continues to enhance its digital offerings to maintain this momentum.
Sree Chaguturu, MD, Executive Vice President and Chief Medical Officer for CVS Health, highlights the importance of the human touch with the patients: “We’re putting people first. Always.
The company conducted research on virtual care after their 1,000,000 telehealth sessions in 2019 turned out to be 52,800,000 in the following years. Here are some key takeaways from it:
- While 62% of the physicians believe their patients are glad they have a virtual care option, just 28% of the patients complain that they miss a face-to-face connection.
- Elderly respondents see the main challenges of telehealth as cost, privacy concerns, lack of knowledge, and lack of interest in the technology.
- The main reasons for liking virtual care among all the respondents are convenience, speed, and safety.
Source: cvs.com
“Once people had their first experience [with telehealth], they found the care to be quite good,” – notices Taft Parsons III, MD, Chief Psychiatric Officer for CVS Health.
The retailer has plans for expansion and is already feeling well on the market, providing their telehealth services via secure compliant software.
Amazon One Medical
As is often the case with healthcare providers owned by giant retailers, One Medical has also existed independently before being acquired by Amazon for a sizable compensation. The compensation was at $3.5 billion, and the deal was completed back in 2023.
Acquiring by Amazon helped the company to improve, speed up, and personalize care for patients, at least it was claimed by Andy Jassy, Amazon’s Chief Executive.
Amazon’s entry into telehealth is seen as a major disruptor. They now offer customers two ways of getting convenient remote care: pay-per-visit telehealth for 30+ common conditions, or membership where customers pay a monthly or annual fee.
One Medical Membership’s 24/7 on-demand virtual care includes video chats and easy in-app Treat Me Now services for immediate needs and common concerns like cold and flu, skin issues, allergies, and more.
The convenience is immense as one can get telehealth sessions from those who deliver meds to their door.
Benefits of Telehealth for Retail
As retailers continue to invest in telehealth services, they are becoming key players in the healthcare landscape. Their expansive physical presence, combined with their growing digital platforms, makes them well-positioned to offer affordable, convenient, and scalable healthcare services.
For software developers, the continued growth of telehealth in retail represents a significant opportunity to create custom solutions that integrate healthcare with retail operations, improve patient outcomes, and enhance customer experiences.
Retailers’ investments in telehealth are not just a trend but a strategic shift toward a more integrated healthcare delivery model, with the potential to revolutionize how care is accessed and delivered across the United States and beyond.
Stats Proving Telehealth and Retail Are Profitable if in Symbiosis
The growing convergence of retail and telehealth is not only enhancing customer experiences but also contributing to significant market growth and improved healthcare outcomes. Below are some key figures supporting this statement.
Walgreens Boots Alliance reported that its online pharmacy business saw 116% growth in 2021, partly driven by the telehealth services it offers.
In 2023, the US telehealth market was valued at $449.85 billion, and Amazon’s influence is expected to drive further growth in this space.
Kroger, one of the players on the market, operates over 2,200 pharmacies and offers telehealth services nationwide, helping them engage customers with a seamless healthcare experience alongside their grocery shopping.
Telehealth services can reduce care costs by $200 per visit on average compared to in-person consultations.
These statistics clearly demonstrate the transformative power of telehealth in retail, offering compelling evidence of its rapid growth and lasting impact. Retail giants like Walgreens, Amazon, and Kroger are not only enhancing patient care but also driving innovation in the healthcare industry.
Conclusion
Symbiosys of telehealth and retail are revolutionizing healthcare delivery, making it more accessible, convenient, and cost-effective for millions of consumers.
Retail giants like Walmart, CVS, Amazon, and many others are already playing pivotal roles in shaping this transformation, offering access to healthcare solutions and covering virtual care needs.
As the telehealth market continues to expand and evolve, retailers are strategically positioning themselves as key healthcare providers.
Custom telehealth software can help retailers improve patient outcomes, streamline operations, and stay competitive in this rapidly growing sector. Elinext is equipped to build the telehealth platforms that will power the future of healthcare.
If your retail business is ready to take the next step into telehealth, contact us. Let us help you design a custom telehealth solution tailored to your unique needs.
