Walmart-Humana Deal Could Threaten Hospital Services

A deal between Walmart and Humana, a large insurance company that offers private Medicare plans, may soon be on the table. Walmart could pay as much as $37 billion (Humana’s current market valuation) to acquire the insurance giant.

An expanded partnership or merger with Humana –  which has its own pharmacy benefits unit and nearly 200 standalone clinics – could help the retailer become a major provider of primary care, posing a direct competitive threat to hospital services.

Other players in the rush to consolidate U.S. health care include CVS, Cigna, and Amazon.

Sources: The Wall Street Journal, April 1, 2018; CNBC, April 2, 2018.

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