Costco Continues Trend Among Retailers to Offer Primary Care Services Utilizing Telehealth Networks; Could Change Care Delivery in the United States
Costco is expanding into primary care by offering its members $29 telehealth visits, lab testing, and virtual mental health services in partnership with the online platform Sesame. The move is part of a broader trend among major retailers to leverage digital tools to create more personalized patient experiences and address consumer frustrations with the traditional healthcare system. Costco’s virtual primary care visits with no wait times will be available in every state, with lab panels and consults priced at $72 and virtual therapy visits at $79. At the end of the most recent quarter Costco had 71 million paid household members (8% year-over-year growth) and 128 million cardholders representing a large potential network to tap.
Sesame, which operates outside of insurance networks, caters to individuals with high-deductible plans and the uninsured. It is a unique healthcare marketplace that directly connects American consumers with thousands of healthcare providers across all 50 states. It offers high-quality, convenient medical care at transparent cash prices, without the need for insurance. Patients can find doctors across 40+ specialties and save up to 60% on services like prescription refills, skin consultations, imaging, dentistry, therapy, and labs.
There has been a growing trend among retailers to increasingly move into primary care delivery. Best Buy Health has launched a hospital-at-home program in collaboration with Atrium Health, based in North Carolina. Best Buy Health, which acquired the remote patient monitoring company Current Health in 2021, will offer patient education, an at-home care platform, medical devices, and technical support through its Geek Squad agents. This move follows Walmart Health’s recent announcement to expand its in-store clinics and enter a 10-year Medicare Advantage deal with UnitedHealth Group. CVS Health also made strides in healthcare by acquiring Oak Street Health, while Walgreens-backed VillageMD is expanding its full-service doctors’ offices in Walgreens locations. Other retail giants like Rite Aid, Albertson’s, and Dollar General have ventured into healthcare delivery. Experts believe that companies like Amazon, CVS, and Walmart, with their extensive retail networks, are reshaping the healthcare landscape by integrating various healthcare assets, including primary care, urgent care, pharmacies, and insurer relationships. These moves have the potential to transform the healthcare industry significantly and alter historic care delivery models.