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rahul k. parikh

rahul k. parikh
Location
Walnut Creek, California,
Bio
Physician & Writer www.rahulkparikh.com www.twitter.com/docrkp The information here is not direct medical advice.

Editor’s Pick
JULY 2, 2009 12:09AM

Is Wal-Mart Leading the Charge for Health Care Reform?

Rate: 14 Flag

Last Wednesday's  headline in the Wall Street Journal may have surprised you.  It read:  "Wal-Mart Backs Drive to Make Companies Pay for Health Coverage."   The article discussed Wal-Mart's open support for an employer mandate requiring all but small businesses to provide care for its workers, a stance that other retailers have opposed for obvious reasons.   

I've been following the story of Wal-Mart and health care reform for the past several years.  While some see this move as the company's way of trying to level the playing field between it and other retailers, it nevertheless has taken several actions over the past decade to make health care more accessible and affordable.  

 Wal-Mart's transformation began in 2006, when then CEO Lee Scott shook hands with Andy Stern, the head of the Service Employees International Union. In the past, such a handshake would have been unimaginable.  Wal-Mart had earned a reputation for failing to provide its workers with health care, and the SEIU was one its strongest critics.  

That changed with rising health care costs.  Wal-Mart, like labor, recognized the need to provide affordable health care.  The Scott/Stern handshake was a call for affordable care for all Americans by 2012.

  This handshake can be seen as a bookend to another handshake decades ago, described by Malcolm Gladwell in a 2006 New Yorker piece.  This first handshake was, like this one, between two powerful men representing labor and industry:

"The president of General Motors at the time was Charles E. Wilson, known as Engine Charlie. Wilson was one of the highest-paid corporate executives in America, earning $586,100 (and paying, incidentally, $430,350 in taxes). He was in contract talks with Walter Reuther, the national president of the U.A.W. The two men had already agreed on a cost-of-living allowance. Now Wilson went one step further, and, for the first time, offered every G.M. employee health-care benefits"

Thus, American health care: --employer based, brokered by private insurers, and provided by doctors on a fee-for-service basis.  The kind of care that has created the fragmented market that most of are a part of today.  The kind that has left 48 million Americans uninsured and millions more underinsured and just one illness away from bankruptcy.   The kind of health care that led Wal-Mart the SEIU and the Center for American Progress to write a letter to the White House today in support of change.   

As reported in the Journal, Wal-Mart has taken sincere steps to provide health care to its employees.  Today, as a result of cutting the time of eligibility in half and increasing choices of plans, 52% of Wal-Mart U.S. employees are covered by the company.  That's compared to 45% of the rest of the retail industry.

 Wal-Mart hasn't just stepped up to increase coverage for its employees--in 2005, it became the first company to offer $5 generic prescriptions--a breakthrough price for people who previously needed to decide between taking their meds or eating dinner. 

Wal-Mart has also been in the lead in opening walk-in clinics in its stores. Although the recession seems to have slowed the initial enthusiasm for retail medicine, the idea, in principle, has the potential to offer convenience at a very affordable price for people who have minor ailments like sore throats. 

Finally, Wal-Mart has also recently started offering an electronic medical record to doctors.  While it remains to be seen whether it will sell, you have to give credit to the big box retailer for taking the initiative.

Whether you like or loath Wal-Mart (and all of us seem to fall into one or the other category), its efforts to shape up American health care shouldn't go unnoticed. In fact, I would dare "real" health care groups, like the American Medical Association, to show that they can match Wal-Mart's initiative and drive to improve health care.  So far, all we've seen from the AMA in the past few weeks has been a lot of lip service trying to assure us that they're on the side of reform while behind closed doors, the Association's members are still fighting about its future.  And remember, the AMA represents at best 20-30% of doctors in this country, which is one reason why the New York Times' Nicholas Kristof urged "President Obama, don’t listen to the A.M.A. on this issue. Instead, for starters, call your doctor!" 

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Interesting. Nice post, thank you.
This move by Wal-Mart could be just the bump Health Care Reform needed. Thanks for posting and starting the debate.

- rated
I give walmart credit for always looking for new profits. Wouldn't it be nice if they provided the health insurance AND the healthcare itself? A win-win! I totally agree with your last paragraph though, thanks for this.
The problem with those walk-in clinics is that Wal-Mart also sells the drugs these patients are prescribed. That's going to create tremendous pressure on the doctors and nurse practitioners to overmedicate their patients.
“Blessed is the servant who loves his brother as much when he is sick and useless as when he is well and an be of service to him."
- St. Francis of Assisi

If you're trying to profit off sick and dying people, I'm not giving you my business. Period. >

Walmart's $4 Drugs Are Coming From An Indian Company Whose Products Have Been Banned In US and Canada:

http://www.wakeupwalmart.com/feature/ranbaxy/
Wall Mart's Low drug prices and efforts to maintain a private sector health care system could be looked upon as socially beneficial. As one begins to delve into the origins of the low prices, the strategies for low overhead costs, the incredibly high profits and huge wealth and power that the company bestows upon its principals; all of this neatly wrapped up within a rigid right wing ideology. I am reminded of Pablo Escobar's efforts to build homes for the poor in Medellin Colombia - or Mr. Madoff's charitable giving, hey! Musollini made the trains run on time didn't he?

You must look beyond the surface and weigh the whole to find wether or not there is true value within a matter. Check it out and decide for yourself.
I'm glad they've come out in support. However, I like many, just never quite trust what they're up to. Here in Georgia in the state's Peachcare system that covers uninsured children, the children of WalMart employees are by far the highest number of recipients, 14X more than number two, even taking into consideration the sheer number of WalMArt employees in the state, when you go just by ratio of uninsured children per employee - WalMart still dominates the list. It's all good that on the customer side they provide the walkin clinics and cheap prescriptions - but believe me that's not done out of charity. Do we really want a WalMartification of the healthcare industry industry, and see the same WalMart drive repercussions that have hit us in manufacturing? Also, from everything I'm told the insurance offered employees and their coverage is pretty deplorable. WalMart may well bet thinking that employees will want to choose the public option over their own minimal corporate plan.
After falling in my rocky xerascaped yard one sunday, I found myself in a wal-mart clinic. It was the only place open outside of the ER, and I certainly didn't need the ER. I needed to be disinfected, bandaged and assessed for stitches. The Nurse Practitioner did a good job, I was in and out of there in 20 minutes - and it cost a hell of a lot less than a visit to the ER with health insurance.

I'd go back under similar circumstances over my regular physician or hospital any day of the week. Fast, affordable, & easy access to more band-aids and surgical tape.

Clumsily yours,

SueinAZ (who is regularly wounded because her feet and brain don't communicate well).
"Finally, Wal-Mart has also recently started offering an electronic medical record to doctors. While it remains to be seen whether it will sell, you have to give credit to the big box retailer for taking the initiative."

Offering or selling? Selling. EMRs are a HUGE market and have a huge profit margin. Of course they got into the business. It's not like they're giving it away.
Health Care Reform is heading for more tests and less procedures. The Wellness Clinics are designed to identify the obese, drinkers, smokers, etc. and send them to therapists in order to keep their jobs. Ultimately, the only affordable healthcare will be for those who make "healthy" choices.
Good information, and I will take today's opportunity to ask my doc what he thinks.
I am generally suspicious of WalMart. While I sense (as many others do) that the driver for these initiatives is profit, I can also see them could potentially leading to greater health accessibility for underserved populations (such as low income individuals and seniors).

As easily as people will go to WalMart for the health services and stay to shop, the reverse can happen -- they may go to shop and drop in for some health screening, or get that nagging problem looked at before it becomes a major health issue.

If the care is indeed being provided by Nurse Practitioners I would predict an increased focus on primary prevention. Staying healthy is as important to this population as is getting healthy.
I still dislike Wal-Mart. There is just so much to dislike.
This might be the first positive thing I've read about WalMart in a long time.
I am highly suspicious of WalMart's motives (especially since they are also the nation's #1 pharmacy); but hopefully their move will encourage other big corporations to break ranks and come forward to support comprehensive healthcare reform.
LulandPhoebe,

thanks for your thoughts--the aspirin is in Aisle 4 :)
cleo,
thanks for sharing your point about wal-mart and peachcare--I agree, they're not acting out of charity--corporations always have self-interest.
This, in a word, is hogwash. 52% is an achievement? WalMart deliberately maintains part time status on a huge number of employees in order to avoid paying for health care. Relatives who have worked for WalMart have vouched that their policies are a joke. What WalMart is doing is trying to head off unionization. And Andy Stern should be ashamed! Just today, he and Lee Scott endorsed the idea of a "trigger" mechanism to being about a public option. This is an attempt to kill the public option altogether. You need to go back to school, Dr. Parikh!
I appreciate the write-up, but ... I'd actually feel better if Wal-Mart were championing government run health care so that it didn't have to provide health care. Then, at least, I wouldn't suspect a profit motive.

Keeping capitalist-style health care but using it as a vehicle to crowd out the ability of players to make a profit seems the worst of both worlds. The point of capitalism is to promote competition, yet Wal-Mart's business practices do not seem to promote competition. That means the prices fall but no one can afford to pay them anyway because they're all out of work, and this will just be another market where that's so.

My family gave up shopping at Wal-Mart some years back even though they often offer lower prices. The impact on the community was not worth the savings of a few pennies. Wal-Mart does not have the kind of business record that leaves me wanting to give it the benefit of the doubt here, even though there might be some room for hope if all other things were equal. They're just not equal.
Here's the real deal with Wal Mart: I have been boycotting them for years and will continue until they change their back-door policies while presenting a sure-footed health care front to the media.

Wal Mart only has half of its 'people' insured because they make it a practice (which is now considered a *model* by fledgling companies) of hiring women of retirement age on a part-time basis, for 33 hours per week.

That is ONE HOUR less than what is required by law to provide health care benefits.

Anything else that Wal Mart is purporting to the mainstream media is, well, bull. The only initiative they are taking is to line their own pockets and circumvent human rights.

Quote from a *victim* just today on this concern:

"They are the ones who originated the part-time worker scenario. They only hire part timers so they don't have to pony up with fringe benefits like health care, etc. Therefore they have a tremendous turn-over and those who are already retired are the only ones who can afford to work for them. Hide and watch - the outcome of the law suit will be blamed on attrition and wal-mart will skate again, yet, still."

Don't get me started about the illegals they hire.....

Thanks for the informative, albeit slanted, article.