Walgreens to Compete with Primary Care Physicians

Walgreens recently announced a partnership with VillageMD to open 500 – 700 primary care clinics within current Walgreens stores. VillageMD, which operates Village Medical, currently owns multiple clinics throughout the Phoenix and Houston areas. The project follows a successful trial in Houston.  

The announcement did not state where the clinics will be located other than that 50% will be in “Health Professional Shortage Areas and Medically Underserved Areas” as defined by the U.S. Department of Health and Human Services. The plan includes hiring 3,600 PCPs to staff the new offices.

The deal promises to offer a streamlined delivery of care model where patients can receive treatment and medication on the same site. However, it presents another challenge to smaller, independent primary care practices that already face stiff competition from large, fast-growing medical groups. While electronic prescriptions have made the doctor to pharmacy experience quicker, most primary care providers will not be able to match such an efficient episode of care.

Similar to all small businesses facing competition from larger corporations, independent PCPs will have to respond by focusing on their areas of strength such as flexibility, relationship building, and customer service. Independent providers still have an advantage in that many consumers prefer companies where they can deal with the business owner directly. Small businesses also can generally respond to consumer issues quicker with better customer service, and develop closer relationships that build loyalty. While providers need to be mindful to keep up-to-date with technological advancements like online access to medical records, electronic prescriptions, and telehealth, they must also make a point to utilize of these small business advantages as the market continues to become more competitive.