In early July, rumors arose regarding Humana’s interest in purchasing Walmart’s shuttered clinics. Now, the Louisville, Kentucky-based insurer is moving forward with plans to lease clinical space at 23 Walmart Supercenter locations. As Walmart retreats from its primary care venture, Humana is capitalizing on the opportunity to expand its senior primary care services in key markets.
Humana’s business model is fundamentally aligned with Medicare Advantage, a sector experiencing rapid growth, particularly in rural areas where Walmart has a strong retail presence. Hal Andrews, CEO of healthcare analytics firm Trilliant Health, highlighted that Humana’s senior-focused primary care approach is well-suited to Walmart’s geographic footprint.
Humana intends to open CenterWell Senior Primary Care and Conviva Care Centers at the former Walmart sites in Florida, Georgia, Missouri, and Texas by mid-2025, providing comprehensive senior care with multidisciplinary teams. According to Mark Taylor, Humana’s corporate communications director, these locations offer an opportunity to enhance accessible senior care in collaboration with Walmart.
Analysts like Michael Greeley of Flare Capital Partners suggest that Humana’s insurer infrastructure will allow for more effective utilization of these centers compared to Walmart’s previous efforts. Moreover, the insurer relationship can drive patient engagement and incentivize usage, factors critical in managing healthcare operations efficiently. Greeley pointed out that other retailers like Dollar General and Walgreens have also encountered difficulties in the healthcare sector.
Summit Health Advisors’ Seth Joseph noted the historical context between Humana and Walmart, including acquisition talks in 2018, indicating mutual familiarity which likely facilitated this leasing arrangement. Leasing, rather than purchasing, presents lower risk and logistical complexity, especially given the integrated nature of Walmart’s stores.
While the future of the remaining 28 shuttered Walmart clinics remains unclear, health system Mercy has already taken steps to lease three of them in Arkansas. Further leasing may depend on the success of Humana’s initial 23 sites.
The evolving partnership between Humana and Walmart exemplifies divergent strategies within the healthcare market where retailers struggle and insurers like Humana find new pathways to expand their service offerings.
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