Retailers will face a number of healthcare headwinds in 2024. Walmart and Greenback Normal just lately exited their healthcare efforts, and CVS Well being is reportedly searching for a non-public fairness companion for Oak Road Well being (which it acquired in 2023). VillageMD, which is backed by Walgreens, is closing quite a few clinics.

Nonetheless, Mary Langowski, govt vice chairman and president of U.S. healthcare at Walgreens Boots Alliance, sees a robust future for healthcare retailers.

“I'm very optimistic concerning the position of retail in healthcare and, fairly frankly, I play a really central position in healthcare,” she mentioned. “And a part of that’s as a result of greater than 80% of individuals need well being and wellness choices in a pharmacy and in a retail atmosphere. Customers need the comfort, they need the comfort of it. And people are essential issues to bear in mind, that demand is there.”

Langowski, who joined Walgreens in March, made the feedback throughout a Tuesday night fireplace chat on the AHIP 2024 convention in Las Vegas. She added that what the business is seeing is just not an “evolution” on whether or not healthcare retailers will exist, however a shift round what the “proper mannequin can be.”

“We actually suppose that if you happen to leverage our core property, we is usually a actually good companion for not only one supplier, however for a lot of, many suppliers and payers throughout america,” Langowski mentioned. “We’re all over the place. We’re locally, we’re digitally oriented. I believe a technique for us is much less capital intensive, capital gentle and really scaled.”

She additionally advised well being plans within the viewers that she desires to collaborate extra. She mentioned she sees retail as a “actually essential entry level” into the well being care system.

“We now have individuals who use their pharmacist two instances greater than any physician, and Medicare sufferers see us eight instances greater than their physician,” Langowski said. “We're not doing sufficient collectively to reap the benefits of these moments the place we are able to interact folks and we are able to create interventions within the well being state of their illness a lot earlier.”

Langowski famous that insurers are beneath vital stress, together with rising prices, regulatory points and challenges in contracting with suppliers. Nevertheless, Walgreens' property are “extremely complementary” to insurers' property, she mentioned.

'We're not going to do what you do. You don't do what we do, however we work very effectively collectively,” she mentioned. “And what this requires is a great method to the business and financial mannequin. I imagine there are a number of methods to create win-win eventualities the place everybody does effectively. Crucial factor is that sufferers turn out to be more healthy they usually have a a lot better and rather more seamless expertise with the system.”

Photograph credit score: Walgreens