Many healthcare goods are commodities, such as strep tests, flu vaccines, x-rays, and blood draws. As a result, it is perhaps not surprising that large retailers with vast experience in selling commodity goods are entering the healthcare market with a focus on low-acuity, commodity healthcare services.
In response to this new competition, many traditional healthcare providers have attempted to compete by expanding their service lines offering to deliver more commodity goods, particularly telehealth. The challenges for traditional healthcare providers to compete with larger retailers are formidable, as hospitals and physician groups have fewer customers, fewer locations, and higher fixed operating costs. Read more.
