In a strategic shift towards retail healthcare, numerous companies are aiming to tap into the burgeoning home healthcare sector, vying for a share of the colossal $4 trillion health industry. This movement encompasses a range of innovations from retail health clinics to wearable medical devices, all with the objective of broadening healthcare accessibility, enabling patients to receive care within the confines of their homes.
Medical devices, including smartwatches and remote monitoring tools like blood pressure cuffs and glucose monitors, have emerged as a substantial market opportunity. Although the fundamental premise mirrors that of traditional retail – delivering a product or service to a customer – the stakes are considerably higher. Federal Trade Commission Chair, Lina Khan, underscored this distinction, emphasizing that healthcare acquisitions involve matters of life and death, distinguishing them from routine purchases.
The health division of retail giant Best Buy (BBY) has been a prominent player in this evolving landscape, initiating moves over five years ago, with a focus on technological platforms and device providers tailored to home-based patient care. In a significant development, Best Buy acquired Current Health, a provider of at-home technology, patient monitoring, and healthcare services, in 2022, for an impressive $400 million. This followed the 2018 acquisition of GreatCall, an emergency response service for elderly patients, at a substantial $800 million, resulting in an augmentation of their customer base by 900,000 subscribers.
Best Buy’s strategic partnerships with leading hospital systems, amalgamating at-home care with the expertise of Geek Squad – their longstanding technology support service – have proven fruitful. Additionally, the introduction of dedicated spaces in 40 stores nationwide, showcasing a range of devices including non-healthcare products, has reinforced their commitment to advancing healthcare technology.
Despite its success, Best Buy maintains its primary role as a technological support partner, affirming its distinction from retailers like Walmart (WMT) and Amazon (AMZN), who have ventured into the domain of healthcare provision through health centers and acquisitions of primary care services, respectively.
Deborah Di Sanzo, President of Best Buy Health, articulated the company’s mission, stating, “We are not looking to provide care; we want to make the process of receiving care at home easier by doing what we do best: bringing consumers the technology they need to age, receive care and remain well in their homes.”
The company leverages its expansive store network, with 70% of Americans living within 10 minutes of a Best Buy, to offer interactive displays that familiarize customers with the latest at-home healthcare technology.
The rise of big box medicine becomes prominent as the retail healthcare industry shifts towards online platforms, diminishing the need for large physical stores. GE Healthcare (GEHC), an independent entity since this year, has been a longstanding player in hospital-grade medical devices, yet it recognizes the potential of at-home care. This involves the distribution of portable devices through retailers, as well as supplying retail clinics with hospital-grade equipment.
Catherine Estrampes, CEO for GE Healthcare in the US and Canada, highlighted the increasing demand for accessible technology in homes or retail spaces, amid the growing influence of retailers like Walmart and CVS.
Estrampes also proposed an innovative concept of integrating mammograms into retail health sites, envisioning a scenario where customers could undergo the procedure in an on-site clinic before their shopping endeavors.
GE Healthcare has introduced a handheld ultrasound device, Vscan Air, designed for both maternity care and with significant advantages for rural markets. In a strategic move, GE Healthcare acquired Caption Health, an AI platform, with the potential to guide patients, such as pregnant individuals, in the use of handheld ultrasound devices, offering a potential reduction in the number of required physician visits.
In this context, the integration of electronic medical records among healthcare partners emerges as a pivotal avenue for enhancing patient outcomes. Additionally, it serves as a foundation for GE to refine its product offerings through data-driven insights, with the ultimate goal of early detection and treatment.
In conclusion, the retail healthcare industry stands at the forefront of a transformative shift, as major players like Best Buy and GE Healthcare leverage technological innovation to bridge the gap between traditional retail and life-saving healthcare services, reshaping the landscape of accessible and personalized care.
Source: Yahoo Finance
