Count Safeway and Walgreens among the retailers that expect to do well as a result of the passage of healthcare legislation by Congress this week.
Safeway has gained national recognition for its ability to cut healthcare costs using an incentive-laden system that emphasizes wellness. Now the company has launched a new subsidiary, Safeway Health, to help other business reduce costs, as well.
According to a report by Business Insurance, Ken Shachmut, Safeway senior VP and executive VP of Safeway Health, said, "About the middle of last year, we decided to try and commercialize our experience. We believe that what we have is transportable to other employers."
"Under our business model, Safeway gets to share in the savings. We take no consulting fees," he said. Safeway's take will be 25 percent of savings generated over five years.
Walgreens sees opportunities for growth in its drugstore and clinic businesses as 32 million Americans currently without insurance will be covered in the future.
Greg Wasson, CEO of Walgreens, said the chain, with more than 7,100 drugstores and 700 in-store or on-site clinics, expects "to benefit from that as a provider."
"We've said all along that we support the three core tenets of health care reform: improved quality, greater access to care and lower cost," Mr. Wasson added.
Jeff Jonas, an analyst at Gabelli & Co., told Crain's Chicago Business. "In the long term, the law is very positive for Walgreen. What you get is more people filling prescriptions, and that means more volume for Walgreen."
Discussion Questions: Where are the greatest opportunities for retailers to benefit from the new healthcare overhaul legislation passed by Congress? Will Safeway be able to profit from bringing its health plan to other companies?