Will Walmart’s Mammogram Partnership with RadNet Improve Patient Access?

In a continued strategy of diversification into healthcare services, Walmart recently announced a partnership with RadNet to offer mammograms at select Walmart Health locations. RadNet is the largest outpatient radiology imaging provider in the country. This partnership launched in December of last year and is set to expand further in 2024.

Walmart and RadNet’s strategies have emphasized how these services will increase access to a greater population, and the convenience factor is expected to reduce some of the resistance to patient scheduling. In terms of the good, the National Breast Cancer Foundation reports that “1 in 8 women in the United States will be diagnosed with breast cancer in her lifetime,” but when “caught in its earliest, localized stages, the 5-year relative survival rate is 99%.”

As altruistic as that may sound, healthcare is a massive industry with significant revenue potential, making it a win-win for consumers and retailers. Healthcare spending in the U.S. in 2022 grew 4.1% to $4.5 trillion, and this was estimated to grow to $4.7 trillion in 2023 with the final tally still pending.

These figures are too hard for retailers, hungry for growth, to ignore. It has created a trend of diversification into healthcare across the retail industry, pulling in multiple chains. Walmart originally launched its Walmart Health initiative in 2019, and it is showing no signs of slowing down.

Walmart Health expanded its long-standing pharmacy operations by adding in services such as dental, vision, behavioral health, and even X-rays. In the forward-looking statement section of its 2023 annual report, Walmart highlighted the growth of this business segment and emphasized a focus on its competitive advantage in the healthcare space as a priority for its flywheel. Meanwhile, sales in its U.S. Health & Wellness division grew 9% in 2023 to $46.6 billion, which is up 27% from just 2020.

As for other retailers, Amazon most notably acquired online pharmacy PillPack in 2018 for $1 billion, and after the launch of Amazon Clinic in 2022, it acquired OneMedical in 2023 for $3.9 billion. Walgreens and CVS of course are moving into vertical expansion with primary care clinic services as well, both virtually and in-person. Even Best Buy is betting on this strategy by offering healthcare tech solutions in a B2B play.

Healthcare isn’t the only industry with the potential to diversify, as essential retailers are also striving to further solidify their indispensability. Retail media networks are growing alongside a push for logistic services, which are natural extensions for revenue streams given the vertical integration.

Walmart currently also offers pet services, vision centers, and its long-standing auto services at supercenter locations. Additionally, Kohl’s and Target have taken a page out of JCPenney’s playbook by adding shop-in-shops like Ulta and Sephora. Amazon, with the most diverse business model of all, has a somewhat conglomerate structure, as its portfolio includes companies in electronics, media, advertising, education lesson planning, home services like plumbing, and even salon service industries. So what’s next?