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Retailers and Health Systems Can Improve Care Together

<!DOCTYPE html> <!--[if IE 8]> <html class="ie8 "> <![endif]--> <!--[if IE 9]> <html class="ie9 "> <![endif]--> <!--[if !IE]><!--> <html class=""> <!--<![endif]--><!-- _____________ _ _ hbr.org _ |/////////////| | | | | | | |:\/E:R|:T/\S:| | |__| | __ _ _ ____ ____ _ _ __ __| | |+++++++++++++| | __ |/ _` | '__\ \ / / _` | '__/ _` | |\:+:\ /:+:/| | | | | (_| | | \ V / (_| | | | (_| | | \:::\ /:::/ | |_|__|_|\__,_|_| _ \_/ \__,_|_| \__,_| \ \ ::+:: / / | _ \ (_) \ /::/ \::\ / | |_) |_ _ ___ _ _ __ ___ ___ ___ \+:/ \:+/ | _ <| | | / __| | '_ \ / _ \/ __/ __| \/_____\/ | |_) | |_| \__ \ | | | | __/\__ \__ \ To improve the |____/ \__,_|___/_|_| |_|\___||___/___/ practice of | __ \ (_) management and | |__) |_____ ___ _____ __ its impact in a | _ // _ \ \ / / |/ _ \ \ /\ / / changing world. | | \ \ __/\ V /| | __/\ V V / est. 1922 |_| \_\___| \_/ |_|\___| \_/\_/ --> <head> <meta charset="utf-8" /> <meta http-equiv="X-UA-Compatible" content="IE=edge"/> <meta name="msapplication-config" content="none"/> <title>Retailers and Health Systems Can Improve Care Together</title> <link rel="canonical" href="https://hbr.org/2024/03/retailers-and-health-systems-can-improve-care-together"/> <meta name="item-id" content="tag:hbr.org,1922-01-01:202403.373300-R2402J"/> <meta name="issue-id" content="BR2402"/> <meta name="item-name" content="Retailers and Health Systems Can Improve Care Together"/> <meta property="article:modified_time" content="2024-02-15T16:45:39Z"/> <meta name="apple-itunes-app" content="app-id=1445571382, app-argument=https://hbr.org"/> <meta name="twitter:card" content="summary_large_image"/> <meta property="og:url" content="https://hbr.org/2024/03/retailers-and-health-systems-can-improve-care-together"/> <meta property="article:tag" content="Health and wellness"/> <meta property="article:tag" content="Healthcare and treatment"/> <meta property="article:tag" content="Strategy"/> <meta property="article:tag" content="Healthcare sector"/> <meta property="article:tag" content="Retail and consumer goods"/> <meta property="article:tag" content="Pandemic"/> <meta name="primary-editor" content="57"/> <meta property="og:description" content="Health systems are struggling to address the many shortcomings of health care delivery: rapidly growing costs, inconsistent quality, and inadequate and unequal access to primary and other types of care. However, if retailers and health systems were to form strong partnerships, they could play a major role in addressing these megachallenges. While some partnerships do exist, they are rare and have only scratched the surface of their potential. Rather than focusing on the direct-to-consumer model that retailers have largely employed, the partnerships should offer much broader care. Drawing on real-world examples, the authors outline four key actions that retailers and health systems should take: (1) They must move beyond convenience to offer comprehensive care. (2) They should move care from clinics into the home. (3) They should leverage data to improve clinical care and the customer experience. And (4) they should change how—and by whom—health care work is done. Implementing these four actions would generate improvements that would benefit not just patients but also the organizations that pay for their health care."/> <meta name="twitter:creator" content="@harvardbiz"/> <meta property="og:site_name" content="Harvard Business Review"/> <meta name="article-type" content="premium"/> <meta property="og:type" content="article"/> <meta property="article:section" content="Health and wellness"/> <meta name="twitter:site" content="@harvardbiz"/> <meta name="page-category-name" content="Health and wellness"/> <meta name="description" content="Health systems are struggling to address the many shortcomings of health care delivery: rapidly growing costs, inconsistent quality, and inadequate and unequal access to primary and other types of care. However, if retailers and health systems were to form strong partnerships, they could play a major role in addressing these megachallenges. While some partnerships do exist, they are rare and have only scratched the surface of their potential. Rather than focusing on the direct-to-consumer model that retailers have largely employed, the partnerships should offer much broader care. Drawing on real-world examples, the authors outline four key actions that retailers and health systems should take: (1) They must move beyond convenience to offer comprehensive care. (2) They should move care from clinics into the home. (3) They should leverage data to improve clinical care and the customer experience. And (4) they should change how—and by whom—health care work is done. Implementing these four actions would generate improvements that would benefit not just patients but also the organizations that pay for their health care."/> <meta property="article:publisher" content="https://www.facebook.com/HBR"/> <meta property="og:image" content="https://hbr.org/resources/images/article_assets/2024/01/R2402J_HYPERTHALAMUSCORP.jpg"/> <meta property="article:published_time" content="2024-03-01T05:00:00Z"/> <meta name="twitter:image" content="https://hbr.org/resources/images/article_assets/2024/01/R2402J_HYPERTHALAMUSCORP.jpg"/> <meta name="article-content-type" content="Magazine Article"/> <meta name="viewport" content="initial-scale=1,width=device-width"/> <meta name="page-category-id" content="391716"/> <meta name="uid" content="D0AF97B69374031F082460298B3BC7E6"/> <meta name="shopper-attributes" content="state:guest"/> <meta property="og:title" content="Retailers and Health Systems Can Improve Care Together"/> <meta name="page-type" content="ITEM"/> <meta name="page-id" content="320"/> <meta name="ox-group" content="537063787"/> <meta name="robots" content="max-image-preview:large"> <!--[if lt IE 9]> <script type="text/javascript" src="/resources/js/support/hbr/elements.js"></script> <script type="text/javascript" src="/resources/js/support/foundation/foundation.js"></script> <![endif]--> <script type="text/javascript"> ;window.NREUM||(NREUM={});NREUM.init={distributed_tracing:{enabled:true},privacy:{cookies_enabled:true}}; ;NREUM.loader_config={accountID:"858143",trustKey:"858143",agentID:"16887721",licenseKey:"e93df31780",applicationID:"8171118"}; ;NREUM.info={beacon:"bam.nr-data.net",errorBeacon:"bam.nr-data.net",licenseKey:"e93df31780",applicationID:"8171118",sa:1}; ;/*! 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page-subtype="premium" isGifted="false"> <div js-target="article-content-flex2019" class="premium content-area--centered"> <div class="pre-container"> <div class="headline-wrapper"> <div class="top-components article-width-wrapper"> <div class="site-logo--for-print premium"> <img src="/resources/css/images/HBR_logo_black.svg"> </div> <div class="slug-container"> <a class="slug-content" href="/topic/subject/health-and-wellness"> Health and wellness </a> </div> <div class="headline-container text-center"> <h1 class="article-hed premium"> Retailers and Health Systems Can Improve Care Together </h1> </div> <div class="article-dek-group"> <div class="article-dek">They should coordinate their complementary services to help consumers and better address the needs of employers and insurers. <div class="article-byline "> <span class="by-prefix">by </span> <ul class="article-byline-list"> <li class="article-author"><a href="/search?term=robert%20s.%20huckman">Robert S. Huckman,</a></li> <li class="article-author"><a href="/search?term=vivian%20s.%20lee">Vivian S. Lee,</a></li> <span class="last-author-joint"> and </span> <li class="article-author"><a href="/search?term=bradley%20r.%20staats">Bradley R. Staats</a></li> </ul> </div> </div> </div> <div class="article-byline detached"> <span class="by-prefix">by </span> <ul class="article-byline-list"> <li class="article-author"><a href="/search?term=robert%20s.%20huckman">Robert S. Huckman,</a></li> <li class="article-author"><a href="/search?term=vivian%20s.%20lee">Vivian S. Lee,</a></li> <span class="last-author-joint"> and </span> <li class="article-author"><a href="/search?term=bradley%20r.%20staats">Bradley R. Staats</a></li> </ul> </div> <div class="pub-date"> <a href="/archive-toc/BR2402" class="magazine-toc-link"> From the Magazine (March–April 2024) </a> <span class="long-read is-hidden"> &centerdot; Long read</span> </div> </div> </div> </div> <hero-image > <div class="hero-image-content "> <div class="image-wrapper" style="width: fit-content;"> <img src="/resources/images/article_assets/2024/01/R2402J_HYPERTHALAMUSCORP.jpg" sizes="(min-width: 64em) 84vw, 100vw" srcset="/resources/images/article_assets/2024/01/R2402J_HYPERTHALAMUSCORP.jpg 2000w, /resources/images/article_assets/2024/01/R2402J_HYPERTHALAMUSCORP-300x169.jpg 300w, /resources/images/article_assets/2024/01/R2402J_HYPERTHALAMUSCORP-1024x576.jpg 1024w, /resources/images/article_assets/2024/01/R2402J_HYPERTHALAMUSCORP-768x432.jpg 768w, /resources/images/article_assets/2024/01/R2402J_HYPERTHALAMUSCORP-1536x864.jpg 1536w, /resources/images/article_assets/2024/01/R2402J_HYPERTHALAMUSCORP-500x281.jpg 500w, /resources/images/article_assets/2024/01/R2402J_HYPERTHALAMUSCORP-383x215.jpg 383w, /resources/images/article_assets/2024/01/R2402J_HYPERTHALAMUSCORP-700x394.jpg 700w, /resources/images/article_assets/2024/01/R2402J_HYPERTHALAMUSCORP-850x478.jpg 850w, /resources/images/article_assets/2024/01/R2402J_HYPERTHALAMUSCORP-1200x675.jpg 1200w, /resources/images/article_assets/2024/01/R2402J_HYPERTHALAMUSCORP-1900x1069.jpg 1900w" /> <div class="container--caption-credits-hero "> <span class="credits--hero-image">Hyperthalamuscorp</span> </div> </div> </div> </hero-image> <div class="premium--container"> <div class="article-width-wrapper"> <div class="article-summary" more-caption="more" close-caption="close"> <span class="summary-header font-bold">Summary.&nbsp;&nbsp;&nbsp;</span> <span class="summary-text"><p>Health systems are struggling to address the many shortcomings of health care delivery: rapidly growing costs, inconsistent quality, and inadequate and unequal access to primary and other types of care. However, if retailers and health systems were to form strong partnerships, they could play a major role in addressing these megachallenges.</p> <p>While some partnerships do exist, they are rare and have only scratched the surface of their potential. Rather than focusing on the direct-to-consumer model that retailers have largely employed, the partnerships should offer much broader care.</p> <p>Drawing on real-world examples, the authors outline four key actions that retailers and health systems should take: (1) They must move beyond convenience to offer comprehensive care. (2) They should move care from clinics into the home. (3) They should leverage data to improve clinical care and the customer experience. And (4) they should change how&#8212;and by whom&#8212;health care work is done. Implementing these four actions would generate improvements that would benefit not just patients but also the organizations that pay for their health care.</p> </span> </div> </div> <div class="article-body"> <div class="left-rail--container"> <page-utils class="article-utils--vertical hide-for-print" data-js-target="page-utils" data-id="tag:hbr.org,1922-01-01:202403.373300-R2402J" data-title="Retailers and Health Systems Can Improve Care Together" data-url="/2024/03/retailers-and-health-systems-can-improve-care-together" data-topic="Health and wellness" data-authors="Robert S. Huckman; Vivian S. Lee; Bradley R. Staats" data-content-type="Magazine Article" data-content-image="/resources/images/article_assets/2024/01/R2402J_HYPERTHALAMUSCORP-383x215.jpg" data-summary="<p>They should coordinate their complementary services to help consumers and better address the needs of employers and insurers.</p> "> <ul> <li class="twitter-icon"> <a href="http://twitter.com/HarvardBiz" target="_blank" rel="noopener noreferrer" js-target="twitter-share"> <i class="updated-twitter-x-icon"> <svg class="" alt="" aria-labelledby="title"> <title></title> <use xlink:href="/resources/css/images/hbr-icons.svg#updated-twitter-x-icon"></use></svg> </i> <div class="utility--icon-label">Post</div> </a> </li> <li class="facebook-icon"> <a href="http://www.facebook.com/HBR" target="_blank" rel="noopener noreferrer" js-target="facebook-share"> <i class="updated-facebook-icon"> <svg class="" alt="" aria-labelledby="title"> <title></title> <use xlink:href="/resources/css/images/hbr-icons.svg#updated-facebook-icon"></use></svg> 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<article-ideainbrief class="article-ideainbrief"> <h4 class="ideainbrief-title">Idea in Brief</h4> <div class="ideainbrief-contents"> <h5>The Problem</h5> <p>Health systems are struggling to address the megachallenges facing health care: rapidly growing costs, inconsistent quality, and inadequate and unequal access to primary and other types of care.</p> <h5>A Solution</h5> <p>Forge partnerships with retailers, which have largely focused on providing consumers with a convenient way to obtain basic care for one-off services such as taking a throat culture, treating an ear infection, or administering a flu vaccine.</p> <h5>The Way Forward</h5> <p>Together, retailers and health systems can better provide comprehensive care for complex conditions, offer care in patients’ homes, leverage data to improve clinical care and the customer experience, and address the looming labor shortage in health care.</p> </div> </article-ideainbrief><p class="mag-icon-health-care-treatment-w30"><span class="lead-in">The Covid-19 pandemic and its </span><span class="lead-in-large">aftermath have </span> starkly highlighted the shortcomings of health care delivery in the United States and many other countries: rapidly growing costs, inconsistent quality, and inadequate and unequal access to primary and other types of care. However, if retailers and health systems were to forge strong partnerships, they could play a major role in addressing these megachallenges. While some retail–health care partnerships exist—for example, one between Target and Kaiser Permanente in Southern California began in 2014—they are rare and have only scratched the surface of their potential. To fundamentally change how health care is delivered, more of these partnerships are needed, and many of those that exist must be reoriented toward a different goal. Rather than focusing on the direct-to-consumer model that retailers have largely employed to provide a handful of basic services, the partnerships must offer much broader care. They should, of course, target the needs of consumers, but they must also help employers and insurers manage the overall health—and health care spending—of the populations they cover. In this article, we make the case for these partnerships and highlight four key actions that retailers and health systems must take to achieve this larger goal.</p> </content> <!-- citation --> <div class="mvm description-text hbrgray, line-height-tight">A version of this article appeared in the <a href="/archive-toc/BR2402">March–April 2024</a> issue of <em>Harvard Business Review</em>.</div> </div> <div class="right-rail--container"> <div class="right-rail--inner"> <div class="related-topics--common related-topics--textnotmobile hide-for-print"> <span class="related-topics--links">Read more on <a href="/topic/subject/health-and-wellness?ab=articlepage-topic"><strong>Health and wellness</strong></a> or related topics <a href="/topic/subject/healthcare-and-treatment?ab=articlepage-topic"><strong>Healthcare and treatment</strong></a>, <a href="/topic/subject/strategy?ab=articlepage-topic"><strong>Strategy</strong></a>, <a href="/topic/industry/healthcare-sector?ab=articlepage-topic"><strong>Healthcare sector</strong></a> and <a href="/topic/industry/retail-and-consumer-goods?ab=articlepage-topic"><strong>Retail and consumer goods</strong></a> </span> </div> </div> </div> </div> </div> <div class="post-container"> <div class="article-width-wrapper"> <ul class="author-bio author-bio--mobile-only"> <li> <div> <author-avatar data-url="/resources/images/article_assets/2014/08/110-robert-huckman.jpg" data-author-name="Robert S. Huckman" data-js-target="author-avatar" style="background-image: url(/resources/images/article_assets/2014/08/110-robert-huckman.jpg);"> </author-avatar> </div> <div> <span> <a href="/search?term=robert%20s.%20huckman&search_type=search-all">Robert S. Huckman</a> is the Albert J. Weatherhead III Professor of Business Administration at Harvard Business School, where he is the Howard Cox Faculty Chair of the <a href="http://www.hbs.edu/healthcare/initiative/Pages/default.aspx">HBS Health Care Initiative</a> and head of the Technology and Operations Management unit. </span> <div class="twitter-icon-and-handle"> <a href="https://twitter.com/intent/follow?screen_name=robert_huckman" alt="Twitter"> <i class="icon icon-twitter" title="Twitter"></i> <span class="at">robert_huckman</span> </a> </div> </div> </li> <li> <div> <author-avatar data-url="/resources/images/article_assets/2016/03/110-Vivian-Lee.jpg" data-author-name="Vivian S. Lee" data-js-target="author-avatar" style="background-image: url(/resources/images/article_assets/2016/03/110-Vivian-Lee.jpg);"> </author-avatar> </div> <div> <span> <a href="/search?term=vivian%20s.%20lee&search_type=search-all">Vivian S. Lee</a>, MD, is an executive fellow at Harvard Business School. She is the former president of Verily Health Platforms at Alphabet, the former CEO of University of Utah Health, and the author of <em><a href="https://www.amazon.com/Long-Fix-Americas-Strategies-Everyone/dp/1324006676/" rel="noopener" target="_blank">The Long Fix: Solving America&#8217;s Health Care Crisis with Strategies That Work for Everyone</a></em> (W.W. Norton, 2020). </span> </div> </li> <li> <div> <author-avatar data-url="/resources/images/article_assets/2014/08/110-Bradley_Staats.jpg" data-author-name="Bradley R. Staats" data-js-target="author-avatar" style="background-image: url(/resources/images/article_assets/2014/08/110-Bradley_Staats.jpg);"> </author-avatar> </div> <div> <span> <a href="/search?term=bradley%20r.%20staats&search_type=search-all">Bradley R. Staats</a> is Ellison Distinguished Professor of Operations at the University of North Carolina&#8217;s Kenan-Flagler Business School, where he is the faculty director of the <a href="https://cboh.unc.edu/">UNC Center for the Business of Health</a> and senior associate dean of strategy and academics. He is the author of <a href="https://www.amazon.com/Never-Stop-Learning-Relevant-Reinvent/dp/163369285X"><em>Never Stop Learning: Stay Relevant, Reinvent Yourself and Thrive</em></a> (Harvard Business Review Press, 2018). </span> <div class="twitter-icon-and-handle"> <a href="https://twitter.com/intent/follow?screen_name=brstaats" alt="Twitter"> <i class="icon icon-twitter" title="Twitter"></i> <span class="at">brstaats</span> </a> </div> </div> </li> </ul> <page-utils class="article-utils--horizontal hide-for-print" data-js-target="page-utils" data-id="tag:hbr.org,1922-01-01:202403.373300-R2402J" data-title="Retailers and Health Systems Can Improve Care Together" data-url="/2024/03/retailers-and-health-systems-can-improve-care-together" data-topic="Health and wellness" data-authors="Robert S. Huckman; Vivian S. Lee; Bradley R. Staats" data-content-type="Magazine Article" data-content-image="/resources/images/article_assets/2024/01/R2402J_HYPERTHALAMUSCORP-383x215.jpg" data-summary="<p>They should coordinate their complementary services to help consumers and better address the needs of employers and insurers.</p> "> <ul> <li class="twitter-icon"> <a href="http://twitter.com/HarvardBiz" target="_blank" rel="noopener noreferrer" js-target="twitter-share"> <i class="updated-twitter-x-icon"> <svg class="" alt="" aria-labelledby="title"> <title></title> <use xlink:href="/resources/css/images/hbr-icons.svg#updated-twitter-x-icon"></use></svg> </i> <div class="utility--icon-label">Post</div> </a> </li> <li class="facebook-icon"> <a href="http://www.facebook.com/HBR" target="_blank" rel="noopener noreferrer" js-target="facebook-share"> <i class="updated-facebook-icon"> <svg class="" alt="" aria-labelledby="title"> <title></title> <use xlink:href="/resources/css/images/hbr-icons.svg#updated-facebook-icon"></use></svg> 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