What’s next, Walmart Medical Center?

In another shift in provider dynamics, Walgreen plans to announce a new healthcare offering operated within corporate and government employers, according to the Wall Street Journal. Building on the mini-clinic concept, Walgreen’s “Take Care” health clinics will combine pharmacies, in-store clinics and company health centers, according to the article.

While the offering leverages already-existing business models, Walgreen’s extensive national presence ratchets the threat to traditional primary care providers up to a new level. It also integrates the disparate elements in a more convenient way for both employers who will house the clinics, and the consumers who use them.

How big of a threat is the Walgreen’s initiative? According to the article, Walgreen bought two large corporate health management firms last spring, and already serves more than 350 corporations, including Toyota and Walt Disney. Combine this with the company’s more than 6,600 drugstores, and the potential for expansion is obvious. The article states that the clinics will also appeal to companies through a clear pricing structure (the bain of the traditional provider world).

Does this move healthcare in the right direction? Depends on who you talk to. For consumers who will have access to Take Care through their place of work, the clinic will provide an enhanced level of access and convenience. But many tie healthcare reform to greater integration, not more divergence of care. For health systems and traditional providers of primary care, the impact is obvious: one more threat to their patient channel.