The WSJ reports that hospital operators are a bit nervous over Walmart's (NYSE:WMT) potential takeover of Humana (NYSE:HUM) considering its strong bargaining position on pricing and move into healthcare services. It already operates pharmacies and primary care clinics and will soon offer laboratory tests.
A tie-up could accelerate consolidation in the healthcare sector as services migrate to lower cost environments like clinics and pharmacies.
Randy Oostra, President & CEO of hospital group ProMedica says a potential Walmart-Humana deal “should be a concern to everybody in health care." Walmart could join an already-crowded field siphoning off revenue from outpatient clinics which subsidize money-losing hospital services.
Subscribe for full text news in your inbox