Dive Brief:

• Walmart is growing its health clinic presence in Florida with plans to open 16 new centers in the state next year, the retail giant said last week.
• The locations, which will be next to Walmart Supercenters in the metro areas of Jacksonville, Orlando and Tampa, will open by the fall of 2023, according to a release.
• The expansion will bring Walmart’s total health clinic footprint in Florida to 22 centers.

Dive Insight:

Since launching Walmart Health in 2019, Walmart has invested millions into expanding its reach, and currently operates more than 30 locations across five states: Georgia, Arkansas, Florida, Texas and Illinois. However, the retailer faces stiff competition from other national pharmacy chains like CVS and Walgreens, which are also looking to become the front door to a wider range of healthcare services than just prescription drugs.

Walmart has been focused on building out its omnichannel care offerings as it moves into direct healthcare delivery, leveraging telemedicine, home touchpoints and perhaps its biggest competitive advantage, a national network of more than 5,000 brick-and-mortar stores.

The Walmart Health centers are geared at patients with no or poor insurance coverage in underserved areas. They deliver primary and urgent care, labs, X-rays and diagnostics, dental, optical, hearing and behavioral health and counseling in one facility, with transparent pricing for patients at the point of service.

Walmart first opened six locations in Florida in 2022. The state is attractive for Walmart Health due to its growing population, aging demographics and access challenges, the company has said.

Florida has the second-highest number of Walmart stores in the country, after Texas, and it’s where the retailer launched its $4 generic prescription program more than a decade ago. The state also has a large population of elderly patients with chronic health needs, making it ripe for players looking to provide low-cost preventive care.

Walmart has been expanding its reach in the healthcare sector beyond care delivery. Last month, Walmart announced it’s getting into clinical trials by launching the Walmart Healthcare Research Institute, which could become a valuable stream of revenue as drug companies look for participants for potential trials and studies.

In addition, Walmart and UnitedHealth in September linked up on a decadelong collaboration deal to offer healthcare services, first targeting seniors.

The value-based care partnership will start next year with 15 Walmart Health locations in Florida and Georgia, and expand into new geographies over time.