Walmart Buys Digital Healthcare Tech from CareZone

Need to Know

• CareZone assets purchased by Walmart will allow customers to more easily manage their prescriptions online.
• CareZone also allows users to scan insurance cards and prescription drug labels to find out what may be covered by their plan.
• 25 to 30 engineering and product team members from CareZone will also join Walmart’s digital healthcare unit.
• CareZone tech will integrate with Walmart’s existing systems; CareZone and its pharmacies will remain a separate company.
• In total, CareZone has 3.5 million app users.

Analysis

In its latest bid for a more robust consumer-facing digital experience, Walmart has acquired assets from CareZone, including technology that will let customers better manage their prescriptions online. and understand their insurance coverage.

On Monday, Walmart revealed that it had purchased the technology platform, patents, and key intellectual property of CareZone and that 25 to 30 members of CareZone’s engineering team would be joining Walmart to manage those technology assets.

CareZone’s app allows individuals and families manage prescriptions for each member of the household by scanning medical labels. The app also allows family members to scan insurance cards, and catalog information about chronic illnesses, for easy access, and sends automatic reminders for refills.

CareZone also manages prescription delivery, but this service will not be acquired by Walmart.

“The goal of any technology startup is to build a product or experience that touches the lives of as many people as possible,” Walter Smith, co-founder and chief technology officer of CareZone, said in a statement published on Walmart’s internal blog. “Adding our technology platform to Walmart’s existing digital capabilities and physical reach creates a unique opportunity to redefine what the future of digital health and wellness can look like.”

Writing in that blog post, Lori Flees, SVP of health and wellness for Sam’s Club, and Sean Slovenski, SVP of health and wellness for Walmart, said that in a recent consumer survey conducted by Walmart, respondents reported that “cost is the top barrier to healthcare for 43% of shoppers, followed by convenience (27%) and access (22%).”

“This is why Walmart is focused on delivering innovative solutions to increase access to affordable and convenient healthcare across our business,” Flees and Slovenski wrote. The company also recently announced plans to equip all of its stores with 5G, which would improve in-store health services by allowing video chats with doctors and allowing real-time medical record access and updates, among other features.