Becker's Hospital Review

21 21 CEO/STRATEGY 3 healthcare execs on whether disruptors like Amazon, Walmart are friend or foe: 'We have to take them incredibly seriously' By Andrea Park T hough Amazon, Apple, Walmart and oth- er consumer-centric companies certainly pose major challenges as they move into healthcare, that transition can also greatly benefit more traditional players in the industry. During a keynote panel at the Becker's Hos- pital Review CEO + CFO Roundtable in Chi- cago on Nov. 12, three healthcare executives discussed the changing landscape of health- care. Panelists included Wendy Rheault, PhD, president and CEO of Rosalind Franklin University of Medicine and Science in North Chicago; Tony Tedeschi, MD, CEO of De- troit Medical Center; and Neil de Crescenzo, president and CEO of Nashville, Tenn.-based Change Healthcare. Together, the panelists illustrated what the successful healthcare system of the future might look like, and how leaders can begin working right away to achieve that vision. "We can't put our heads in the sand on this one," Dr. Tedeschi said. "It's going to require us to take a different look at how we do things. Fundamentally, I know, that's frightening, but we owe it to our- selves and to our patients and communities to really engage in this," he continued. "Ulti- mately, it's going to mean improving quality, redesigning systems and taking some costs out of the infrastructure." Just as healthcare organizations must be pro- active in adapting to healthcare's ongoing transformation, so too must medical schools prepare students for this changing system. "Our students are learners and are leading, and we need to make sure that we are helping them to be ready for the new system where high-value care is important," Dr. Rheault said. "ere is a huge disconnect between the environment and what we all advocate for and acknowledge — that high-value care is needed — and the academic train- ing that our physicians and other health professionals are getting." Both Mr. de Crescenzo and Dr. Tedeschi also discussed why it will be absolutely necessary for healthcare organizations to partner with the disruptive forces of big tech and other con- sumer-first entities, which must be taken "in- credibly seriously," according to Dr. Tedeschi. In forming these partnerships, Mr. de Crescenzo said, "one of the most important things is to determine as a leadership team what you are truly, uniquely good at and then seek out world-class partners — in advance, before it becomes obvious that everybody's trying to seek them out — and develop the kind of relationships with the senior exec- utives at those organizations that are based upon enormous clarity as to what you do well, what they do well and how, in working together, one and one can equal three." He added, "at starts with being very spe- cific about what your organization is good at and what other organizations can do to help you in your ultimate aim." n Walmart to expand standalone health center model, CEO says By Ayla Ellison W almart opened its first freestanding health cen- ter in September, and the retail giant is planning to open several more, President and CEO Doug McMillon said in management's commentary accompany- ing Walmart's third-quarter results in November. The company's first standalone clinic, called Walmart Health, opened Sept. 13 in Dallas, Ga. The 10,000-square- foot clinic offers a variety of services, ranging from primary care to labs to dental, in one facility. "By partnering with local providers, we're delivering qual- ity, affordable and accessible healthcare for members of the local community," Mr. McMillon said. "I'm pleased with what we're seeing so far at this first location." Mr. McMillon also discussed the company's plans to open more standalone health centers. "We're opening a second location soon, and I know we'll continue to learn as we open several more and design the ideal model to provide customers with better and unique solutions for their everyday healthcare needs," he said. The second health center will be in Calhoun, Ga., accord- ing to Business Insider. Walmart Executive Vice President and CFO Brett Biggs said the grand opening of Walmart Health, expansion of the company's Delivery Unlimited membership program, and the launch of unattended in-home grocery delivery in the third quarter will help the company attract more cus- tomers and generate more revenue. "Each of these new offerings leverages the supercenter in ways we only imagined a few years ago," he said in man- agement's commentary published Nov. 14. "So, we're finding new ways to deliver great customer experiences across channels that will result in new opportunities to generate traffic, build loyalty and drive revenue growth." Walmart ended the third quarter of fiscal 2019 with net income of $3.29 billion on revenues of $128 billion. In the same period a year earlier, the company reported net in- come of $1.71 billion on revenues of $124.9 billion. n

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