How retail acquisitions will accelerate adoption of value-based care

Recent retail acquisitions in health care like those undertaken by Amazon, CVS, and Walgreens are leading many to wonder what the industry’s future will look like. One thing is certain: these deals confirm that innovation and transformation are coming to the health care industry. I predict that we will see these companies address huge problems related to the adoption of value-based care (VBC), a form of reimbursement that ties physician payment to the quality of care provided. Here is how retail health companies will change the future of VBC amid growing demand for better access to primary care across the country.

1) We’ll see more adoption of value-based care to advance health equity and affordability

Major health care players are ramping up investment in tools supporting VBC as a strategic play to capture more health care spending. CVS’ acquisition of Oak Street Health is one example of a visible commitment to VBC that lowers costs and improves outcomes. By combining its health services with Oak Street Health, CVS VBC gained a more expansive footprint. Oak Street had more than 600 primary care providers and 169 senior-focused medical centers across 21 states before the acquisition. The company’s focus on seniors aligns with the area of the market most focused on VBC—Medicare. I expect many other big retailers will follow this model.