Issue link: https://beckershealthcare.uberflip.com/i/984530
59 HEALTHCARE NEWS A Walmart-Humana giant scares hospitals: 5 reasons why By Morgan Haefner A potential deal between Walmart and Humana would strengthen Walmart's position as a competitive threat to hospitals, industry consultants and executives told e Wall Street Journal. Reports surfaced March 29 that retail giant Walmart is in preliminary talks with health in- surer Humana about developing a closer part- nership, and one possibility is Walmart acquir- ing Humana, people familiar with the matter told WSJ. Here are five reasons why hospitals fear a pos- sible Walmart-Humana behemoth. 1. Randy Oostra, president and CEO of Tole- do, Ohio-based nonprofit health system Pro- Medica, told the publication the prospect of a Walmart-Humana deal "should be a concern to everybody in healthcare." Competition from inexpensive healthcare options and stagnant growth are among hospitals' chief concerns, with a possible Walmart-Humana deal height- ening anxiety. 2. While a deal isn't guaranteed, it comes on the heels of two healthcare mega-deals: CVS Health's $69 billion bid for Aetna and Cigna's $54 billion offer for Express Scripts. ese insurer pairings could mean a shi toward cheaper care provided at clinics and pharma- cies, cutting into spending on hospital services. 3. Zack Cooper, health economist at Yale Uni- versity in New Haven, Conn., told WSJ, "ese vertical deals are super exciting, mostly for the potential to keep people out of the hospital." When asked about a possible Walmart-Huma- na deal, he said, "ere is scope for this new entity to, in a sense, offer a product that has less bells and whistles and is more efficient and lower cost." 4. ose efficiencies could partially come through Walmart's 4,700 pharmacies nation- wide. However, Walmart's clinic footprint — it operates 19 in Georgia, South Carolina and Texas, and providers operate 50 others — is limited. Given Walmart's colossal retail pres- ence, expanding these outpatient capabilities could make Walmart a direct competitor for low-cost outpatient offerings, the consultants and executives told WSJ. 5. Aside from offering cheaper, more efficient healthcare, industry consultants and executives look to Walmart's negotiating power for em- ployee health benefits as a reason for hospitals to be nervous. Combining Walmart's employee benefit negotiating clout with Humana's data and infrastructure could position a combined entity to offer competitive health plans. Hos- pitals excluded from those networks would see increased operating pressure, WSJ reports. n Q-Spine: The Next Step in MRI Spinal Analysis Q-Spine is a new support tool to visualize and quantify relative biomechanical changes between weight-bearing and recumbent lumbar spine MRI exams. Now available on Esaote's G-scan Brio dedicated MRI systems, Q-Spine provides: • Numerical quantifi cation • Reliable measurements • PDF reporting Superimposed Images WB-MRI Recumbent -MRI Distance: 1.3mm Index: 0.13 Distance: 13.8mm Index: 1.31 Difference: 12.5mm Q-SPINE: L5-S1 Listhesis Analysis See us at the Becker's Spine Conference or visit esaoteusa.com Q-Spine F.indd 1 4/24/18 1:13 PM