Walmart’s Closure Of Clinics Is Part Of Larger Retail Retreat From Health Care
Walmart will shut down all 51 of its health clinics and its virtual care services, citing costs and the challenges of reimbursements as the force behind its change of strategy.
Modern Healthcare:
Walmart Health To Close All Clinics, End Virtual Care
Walmart will close all of its clinics and its virtual care platform in a sharp reversal of its five-year-old health center strategy. The retailer attributed the shutdown of its Walmart Health unit, which involves closing 51 clinics across five states, to a challenging reimbursement environment and escalating operating costs, making the business model unsustainable. Walmart declined to share closing dates for individual centers, but a spokesperson said some clinics will remain open for up to 90 days. (Hudson, 4/30)
Axios:
Retailers Retreat From Health Care Delivery
Walmart's decision to shutter its health clinics and virtual care services marks the most significant retrenchment yet from major retailers who sought to transform how health care is delivered. (Reed, 5/1)
Axios:
End Of Internet Subsidy Threatens Telehealth Access
Millions of low-income Americans may find it harder to see health care providers virtually after federal subsidies for high-speed internet expired Tuesday. Many of the 23 million households that received financial help to afford their internet bill made or attended health care appointments online, a federal survey indicates. (Goldman, 5/1)
On the UnitedHealth hack —
Bloomberg:
Change Healthcare Hack: US Cybersecurity Agency Questioned Over Response
A trio of US senators asked the federal government’s lead cybersecurity agency to explain its response to a February ransomware attack on an insurance company that paralyzed much of the country’s health-care system. The group, led by Senator Elizabeth Warren, a Massachusetts Democrat, on Monday asked the US Cybersecurity and Infrastructure Security Agency to share details of its role in addressing the breach of Change Healthcare. ... The letter also requested a broader picture of the risk posed by ransomware and the agency’s efforts to combat it. (Bleiberg, 4/30)
Bloomberg:
Elizabeth Warren Urges SEC To Probe UnitedHealth Stock Sales
Democratic US lawmakers led by Massachusetts Senator Elizabeth Warren are asking the Securities and Exchange Commission to investigate the timing of stock sales by UnitedHealth Group Inc.’s chairman and three executives. The company officials netted a combined $101.5 million through trades made after the company was reportedly notified of an antitrust investigation but before the probe became public, Bloomberg News disclosed earlier this month. (Tozzi, 4/30)
Modern Healthcare:
What UHG’s Andrew Witty Will Tell Congress About The Change Outage
UnitedHealth Group CEO Andrew Witty is scheduled to be on Capitol Hill Wednesday, responding to lawmakers demanding answers about the company's failed cybersecurity measures and response to the Change Healthcare cyberattack. Witty plans to testify before the Senate Finance Committee Wednesday morning and the House Energy and Commerce's Subcommittee on Oversight and Investigations in the afternoon. The House committee released Witty’s written testimony ahead of the hearing. (Berryman, 4/30)
More health care company developments —
Modern Healthcare:
Tenet Healthcare Plans To Invest In Specialty Care, Expansions
Tenet Healthcare plans to grow its ambulatory surgical center footprint and invest in specialty hospital care after a strong first quarter, CEO Dr. Saum Sutaria said. During a first-quarter earnings call with analysts Tuesday, Sutaria said Tenet spent $449 million on 45 new ambulatory facilities during the quarter and the system anticipates more mergers and acquisitions and start-up investments for its ambulatory surgical center division. (DeSilva, 4/30)
Modern Healthcare:
CVS Health Buys Medicare Advantage Broker Hella Health
CVS Health paid an undisclosed sum to acquire Hella Health, according to the Medicare Advantage brokerage's founder. Hella Health debuted in 2020 and claims to offer more than 3,000 Medicare plans from insurers such as CVS Health subsidiary Aetna, UnitedHealth Group subsidiary UnitedHealthcare and Humana. (Tepper, 4/30)
Crain's Chicago Business:
Moody's Gives Duly Health And Care Credit Rating Downgrade
Following various belt-tightening measures, including layoffs and compensation cuts, Duly Health & Care was downgraded by a major bond credit ratings agency, an indication that the private-equity-backed physicians group’s financial position continues to darken. Moody’s Ratings downgraded Duly on three key metrics in an April 16 report, saying the action reflected its “deteriorating operating performance and very high leverage," or debt loads, based on an analysis of the company’s financial performance in the 12 months ended Sept. 30. (Davis, 4/30)
Modern Healthcare:
Akili Layoffs Hit 46% Of Employees
Digital therapeutics company Akili said Tuesday it is reducing its workforce by 46% and exploring strategic alternatives. Akili, which has developed video game therapies for people with attention deficit hyperactivity disorder, said in a release it was eliminating its marketing and medical affairs teams. As a result, the company said it would “substantially reduce” promotional activity for its EndeavorRx and EndeavorOTC therapeutic video games. This is the third major layoff for Akili in 18 months. (Turner, 4/30)
