Healthcare Reform Good for Some Chains
Count Safeway and Walgreens among the retailers that expect to do well as
a result of the passage of healthcare legislation by Congress this week.
has gained national recognition for its ability to cut healthcare costs using
an incentive-laden system that emphasizes wellness. Now the company has launched
a new subsidiary, Safeway Health, to help other business reduce costs, as well.
to a report by Business Insurance, Ken Shachmut, Safeway senior
VP and executive VP of Safeway Health, said, "About the middle of last year,
we decided to try and commercialize our experience. We believe that what we
have is transportable to other employers."
"Under our business model, Safeway gets to share in the savings. We take
no consulting fees," he said. Safeway’s take will be 25 percent of savings
generated over five years.
Walgreens sees opportunities for growth in its drugstore and
clinic businesses as 32 million Americans currently without insurance will
be covered in the future.
Greg Wasson, CEO of Walgreens, said the chain, with
more than 7,100 drugstores and 700 in-store or on-site clinics, expects "to
benefit from that as a provider."
"We’ve said all along that we support the three core tenets of health care
reform: improved quality, greater access to care and lower cost," Mr. Wasson
Jeff Jonas, an analyst at Gabelli & Co., told Crain’s Chicago Business.
"In the long term, the law is very positive for Walgreen. What you get is more
people filling prescriptions, and that means more volume for Walgreen."
Discussion Questions: Where are the greatest opportunities for retailers
to benefit from the new healthcare overhaul legislation passed by Congress?
Will Safeway be able to profit from bringing its health plan to other companies?
chain stocks health plan services – Business Insurance
- Walgreen stands to reap benefits of health care reform – Crain’s Chicago Business