Walgreen Continues March Into Health-Care Delivery


Walgreen execs said yesterday that the company’s buying a shop called I-trax for about $260 million and another company called Whole Health Management for an undisclosed amount, the WSJ reports.

Like its archrival CVS, Walgreen is no longer content with its retail business selling prescriptions, over-the-counter drugs and a random assortment of groceries and novelty items. Walgreen and CVS have both been busy opening retail clinics to provide health care in their stores. And last year, CVS merged with the giant pharmacy benefits manager to get into the business of managing companies’ prescription drug benefits.

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Whole Health Management Opens Second On-Site Wellness Center for Sprint Employees and Dependents

Whole Health Management, a leading operator of on-site and near-site health clinics for large corporations, and Sprint, opened a 4,500 square-foot health and wellness center and pharmacy on Feb. 15 to serve Sprint employees working at the company’s Reston, Va. offices. The on-site clinic offers quality health services to more than 4,000 Sprint employees and their spouses, as well as minor dependents 14 and older.

The clinic is open to employees Monday through Friday, and is one of two on-site health care clinics operated by Whole Health at Sprint facilities; the other health and wellness center is located at Sprint’s main campus in Overland Park, Kan.

“We are excited to partner with Whole Health to open a second on-site health and wellness center for our Reston employees,” said Stacey Nelson, health care delivery manager for Sprint. “Our existing Whole Health clinic has provided our employees with superior health care services, improving access to care and enhancing employee engagement in important health-care decisions. They have been able to do this while helping to increase productivity and reduce health-care costs. Sprint’s decision to open a new health center and pharmacy supports our efforts to attract and retain the best employees and to keep our employees healthy and productive.”

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On-site clinic healthy for bottom line

Mandy del Valle, a nurse practitioner, sees more than two dozen people a week in an exam room in southeastern Lawrence, where she needn’t bother with a waiting room.

Her patients simply walk in off the work floor.

“They don’t even need to clock out,” said del Valle, who contracts to provide health care at Amarr Garage Doors, in East Hills Business Park. “They seem to really like it, too.”

Moreover, it doesn’t cost them a cent.

Amarr officials like the arrangement so much that they’re helping tout the program to other area employers, many of whom are looking for ways to improve employee health, increase company efficiency and — not least of all — ease financial pains for employer and employees alike.

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Companies forming own health clinics

In his medical practice, Peter Krause now allots a full hour for new patients and a half an hour for routine visits.

The additional time has changed the way he practices medicine.

“You have more time to think about each individual problem the patient has,” said Krause, a family-practice physician. “It allows you to slow down your whole thinking process, so that you are more thorough.”

Krause’s new practice is at Kohl’s Wellness Center, a family-practice clinic less than a half a mile from the company’s corporate headquarters in Menomonee Falls.

The clinic, which opened in July, is one of at least eight in Wisconsin run by companies. It also is part of a growing trend in which large companies try to rein in rising health care costs by providing the care themselves.

Many of those companies - including Quad/Graphics, one of the first to set up its own clinics - have shown that they can provide better care at a lower overall cost.

They’ve done that partly by focusing on primary care and prevention.

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Company Clinics Cut Health Costs

Frustrated by runaway health costs, the nation’s largest employers are moving rapidly to open more primary care medical centers in their offices and factories as a way to offer convenient service and free or low-cost health care.

Within the last two years, companies including Toyota, Sprint Nextel, Florida Power and Light, Credit Suisse and Pepsi Bottling Group have opened or expanded on-site clinics. And many employers are adding or planning to add even more clinics, which were experimented with about 30 years ago but fell out of favor amid questions about their cost-effectiveness.

Today a new wave of clinics is opening, driven largely by a motive that was less of a factor in the past: employers’ desires to reduce their health insurance premiums by taking care of workers before they need to see outside doctors. More than 100 of the nation’s 1,000 largest employers now offer on-site primary care or preventive health services — a number forecast to exceed 250 by the end of the year, according to David Beech, a health benefits consultant.

Corporate America’s new in-house medical offices go well beyond traditional occupational health clinics that hundreds of factories have long maintained for job-related injuries and worker’s compensation cases. Employees can now stop by for check-ups, allergy and flu shots, pregnancy tests or routine monitoring for chronic diseases like diabetes and asthma.

When prescription drugs are required, some employers arrange for the pills to be delivered the next day at the office or plant, while others even maintain fully stocked pharmacies.

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