Cash-and-carry behemoth Costco has recently launched an initiative to offer its Members discounted pricing on virtual health services, including primary care and mental health, in partnership with Sesame, an online platform that connects patients and healthcare providers.
Noteworthy is the distinct approach Costco is taking to this venture, differing importantly from what we’ve seen with big-name retailers like CVS Health and Walgreens who have also stepped into the healthcare arena. These notable differences, experts say, could have considerable implications for the future of retail healthcare.
Discounted virtual healthcare services are, no doubt, a boon to existing Costco members who can avail of these primary care and mental health services. This program, coupled with Costco’s already extensive offerings in pharmaceutical services, aligns with the growing trend of retailers increasingly entering the healthcare business.
However, the manner in which Costco is entering the healthcare arena sets them apart from their retail competition. While CVS Health and Walgreens have opted to establish their in-house, physical healthcare clinics and pharmacies, Costco’s partnership with Sesame to provide these services virtually, is a departure from existing trends.
Expanding upon this discrepancy, some industry experts argue Costco’s approach could potentially offer a more scalable solution for retailers looking to make headway into the healthcare sector. With the increasing utilization and acceptance of telehealth technologies, the traditional barriers to entry for retailers into the healthcare market could gradually be dissolved.
As this developing story unfolds, keep an eye on the ramifications Costco’s unique approach can have on the corporate strategy of other retail giants aiming to provide healthcare alongside their day-to-day business operations.
For more information and updates on Costco’s venture into the healthcare industry, click here.