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WalMarts Commitment to Better Health Care for America


Consumer Solutions: In-Store Medical Clinics ... in health care, information technology and supply chain management in Mar. 2007 ... – PowerPoint PPT presentation

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Title: WalMarts Commitment to Better Health Care for America

Wal-Marts Commitment to Better Health Care for
Saving people money so they can live better
June 13, 2007
  • Kate Sullivan Hare
  • Director, Health Care Policy
  • Wal-Mart Stores, Inc.

Addressing Our Customers Health Care Concerns
  • Rising costs 46.6 million uninsured a broken
    health care system
  • As the worlds largest retailer, how can we help?
  • Our Scope
  • More than 4,000 stores in the United States
  • More than 175 million customers around the globe
    each week
  • Opportunity to reach millions of people every day
  • Providing savings is what we do everyday, and
    its what we do best
  • Drive costs out of the system
  • Pass those savings on to our customers
  • We applied these strengths to bring our customers
    savings in the most important area of their life
    their health

Consumer Solutions In-Store Medical Clinics
  • In Sept. 2005, began pilot program to lease space
    to in-store clinics operated by third-party
  • Successful pilot program has expanded to 77
    stores in 13 states
  • Another opportunity to take costs out of the
    system to benefit consumers
  • In April 2007, announced we would work with local
    and regional hospitals and community health
    providers to open more clinics
  • 400 in the next two to three years
  • As many as 2,000 in the next five to seven years
  • Clinics offer convenient, affordable health care
    delivered by trained medical professionals
  • We believe these clinics will enhance the
    efficiency and effectiveness of our health care

Serving Our Customers and Communities
  • Affordability
  • Prices pre-determined and posted, so patients
    know what they will be charged in advance
  • Insurance providers increasingly including these
    clinics in their networks
  • A routine get well visit to a clinic typically
    costs between 40 and 65
  • Convenience
  • No appointments necessary
  • Extended hours
  • One-stop health shop for people short on time
  • Quality
  • Nurse practitioners or physicians provide
    non-urgent health care services for minor
  • Benefit communities by reducing the burden on
    hospital ERs
  • Expand access to affordable, quality health care

In-Store Medical Clinics Potential
  • Services
  • Tailored offerings for specific populations
    (clinics of the community)
  • Extended access rural communities, after-hours
  • Educational services counseling
  • Efficiency Integration
  • Partnering with local and regional hospitals and
    other organizations to open new clinics
  • Low-risk entry into medical system for uninsured
    and insured alike
  • Access point for maintenance monitoring
  • Continuity of care with referrals and electronic
  • Goal of common electronic medical records system
    in all new clinics opening in Wal-Marts
  • Alleviation of pressure on ER (appropriate level
    of care)

Early Indicators of Customer Impact
Profile of Customers
Service, Usage Experience
  • Service usage
  • Approximately 25-40 stay well (immunizations and
  • Approximately 60-75 get well (common illnesses)
  • Top reasons for visiting
  • convenient location
  • no appointment
  • quick service
  • Satisfaction
  • 90 overall satisfaction

  • Demographics
  • About 79 are adults
  • About 21 are children
  • Insurance Status
  • Approximately 50 uninsured
  • Alternative Considerations
  • Approximately 15-20 urgent care or ER
  • Approximately 10-15 would have foregone treatment

Source Surveys collected and shared by existing
4 Prescription Program Impact
  • Eased health care cost burden for seniors living
    on a fixed income and working families
  • 4 prescriptions now represent 37.8 percent of
    all prescriptions we fill
  • Savings to customers, employers, and government
    programs since launch more than 350 million
  • Thats more than 350 million weve removed from
    the cost of health care in the U.S.
  • Helped many of the 45 million individuals without
    insurance afford the prescription drugs they need
  • Nearly 30 percent of 4 prescriptions are filled
    without insurance
  • Lessened the burden for seniors facing Medicares
    doughnut hole
  • Potentially save state Medicaid programs hundreds
    of thousands of dollars annually

Policy Solutions Health Information Technology
  • Dossia
  • First-of-its-kind collaboration between Wal-Mart
    and other employers (i.e., Intel, Pitney Bowes,
    Applied Materials and BP America)
  • Important first step toward bringing greater
    efficiency, quality and transparency to U.S.
    health system
  • Will provide employees at founding companies with
    framework for building and maintaining private
    electronic personal health records
  • HIT Conversation
  • Convened thought leaders in health care,
    information technology and supply chain
    management in Mar. 2007
  • Plans underway to meet again in the autumn
  • American Health Information Community (AHIC)
  • Makes recommendations to HHS Secretary on how to
    accelerate the development and adoption of health
    information technology
  • Wal-Mart represented by Vice Chairman John Menzer
  • Center for Innovation in Health Care Logistics
  • Partnership with University of Arkansas and Blue
    Cross Blue Shield of Arkansas, Alabama and
  • Focus on improving the health care delivery
    system with the use of information technology

Policy Solutions Better Health Care Together
  • Partnered with leaders in business, government,
    labor and public policy communities in February
  • Expanded membership in May 2007
  • Four common sense principles for achieving a new
    American health care system by 2012
  • Every person in America must have quality,
    affordable health insurance coverage
  • Individuals have a responsibility to maintain and
    protect their health
  • America must dramatically improve the value it
    receives for every health care dollar
  • Businesses, governments, and individuals all
    should contribute to managing and financing a new
    American health care system

2007 Open Enrollment
  • 90.4 percent of Wal-Mart associates reported
    having some sort of health coverage
  • More than one million people associates and
    their family members are covered by Wal-Mart
    health plans (as of January 07)
  • 76.3 percent of Wal-Mart associates were eligible
    for coverage
  • 9.6 percent remain uninsured

Benefit Solutions
  • Our goal Provide affordable and accessible
    health care that brings peace of mind for our
  • Affordability
  • Low payroll deductions individual monthly
    premiums available in some areas for 11 and
    start at 23 throughout continental U.S.
  • First-dollar coverage, lower prices on common
  • Accessibility
  • All associates, both full- and part-time, can
    become eligible for coverage on company plans
  • Children become eligible as soon as their parents
  • Network options including HMOs (where available)
  • Peace of Mind
  • No lifetime maximums protect associates and their
    families from financial ruin in case of
    catastrophic illness
  • Access to world-class health care providers

What Are Our Associates Telling Us?
  • Among associates who did not select Wal-Mart
    health coverage
  • 76.4 percent said Wal-Mart is not the household
    primary source of income
  • 62.2 percent said Wal-Mart is not their
    individual primary source of income
  • 25.4 percent are students
  • Among those associates who chose Wal-Mart
    coverage for the first time
  • 53.2 percent said they were previously uninsured
  • 27.5 percent said they could not afford coverage
  • 9.4 percent said there was not a plan that met
    their needs previously
  • 7.8 percent said they came off Medicaid

2005 Profit Per Associate
  • Select Retailers Grocers
  • Home Depot 17,969
  • Best Buy 9,817
  • Costco 9,237
  • Walgreens 8,827
  • Target 7,348
  • JCPenney 7,219
  • Wal-Mart 6,606
  • Dollar General 5,380
  • Safeway 2,932
  • Sears Holding 1,918
  • Top Companies by Net Profit
  • ExxonMobil 431,661
  • ConocoPhilips 382,584
  • Goldman Sachs 251,059
  • Chevron Corp. 238,983
  • Microsoft 214,098
  • Johnson Johnson 94,722
  • Bank of America 93,242
  • Intel 86,687
  • Citigroup 82,408
  • Wal-Mart 6,606

Source Forbes 2000 List
Kate Sullivan Hare (202) 737-9372 kate.sullivanha
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