Disruptors Discover That Healthcare Can’t Be Run Like a Shopping Mall
Another disruptive factor is the exit from the primary care sector.
Walmart has announced the sale of its MeMD virtual care program to Fabric, a year-old telehealth startup whose healthcare partners include OSF HealthCare, MUSC Health, Highmark, Luminis Health and Intermountain Health. The move comes just months after the retail giant announced it was shutting down its virtual care platform and a significant number of its in-store health centers.
The announcement follows a trend of disruptors exiting the primary care space after failed attempts to turn a profit. Walgreens, CVS Health and Rite Aid have all cut their health care plans due to business challenges and a pharmacy sale, while Amazon recently announced plans to consolidate its virtual care and primary care services onto a single platform.
MeMD was launched in 2010 and acquired by Walmart in 2021.
Fabric, which offers a multifaceted virtual care platform for enterprises and payers as well as healthcare providers, said the deal will allow it to expand its base and build out in-demand behavioral health services. The company secured $60 million in Series A funding in February, from investors including General Catalyst and Salesforce Ventures.
“This acquisition aligns with our strategic vision to transform healthcare delivery through innovative technology and exceptional patient care,” Founder and CEO Aniq Rahman said in a press release. “The combination of our teams, technology and clinicians strategically positions Fabric to rapidly expand with payers, employers and providers.”
The agreement underscores the ongoing challenge of creating a primary healthcare retail model that combines value and sustainability. Many companies are finding that while consumer-facing retail strategies hold promise for improving the healthcare experience, that doesn’t mean a healthcare service can be run like a retail store.
Eric Wicklund is Associate Content Manager and Innovation Editor at HealthLeaders.