Disruptors in the healthcare industry are facing the realization that healthcare cannot be managed in the same way as a shopping center. Walmart, a major player in the retail world, recently announced the sale of its MeMD virtual care program to Fabric, a telehealth startup. This move follows Walmart’s decision to close its virtual care platform and many in-store health centers. The trend of disruptors backing out of the retail primary care space is evident, with companies like Walgreens, CVS Health, and Rite Aid also scaling back their healthcare plans.
Fabric, the telehealth startup that acquired MeMD, offers a comprehensive virtual care platform for businesses, payers, and healthcare providers. The acquisition allows Fabric to expand its services and include in-demand behavioral health offerings. The company recently secured $60 million in Series A funding and aims to transform healthcare delivery through technology and patient care.
The acquisition of MeMD by Fabric underscores the challenges of developing a retail primary care model that is both valuable and sustainable. While consumer-facing retail strategies can enhance the healthcare experience, running a healthcare service requires a different approach than managing a retail store. This ongoing struggle highlights the need for innovation and strategic planning in the healthcare industry.
Eric Wicklund, the associate content manager and senior editor for Innovation at HealthLeaders, monitors the evolving landscape of healthcare technology and disruption.