Walmart Enters Mail-Order Pharmacy Market

Walmart’s health and wellness objectives include building upon its successful strategy of providing healthcare to employees and grow its digital healthcare solutions.

Walmart’s recent purchase of CareZone supports its strategy as it offers customers a way to help coordinate the delivery of medications. Launched 10 years ago, CareZone develops apps to help patients manage their medicines. It also built technology for users to scan insurance cards and prescription drug labels, making it easier for users to determine what’s covered by their health plan or to organize a home delivery. CareZone said the apps have about 3.5 million members.

Under the terms of the deal, Walmart is getting CareZone pharmacy, which sorts customers’ medications into pill packs and mails them to patients via mail.  CareZone’s pharmacy division has been involved in a lawsuit with Express Scripts, which ended CareZone from its network over a contract dispute.

Walmart’s recent health and wellness initiatives include:

  • Walmart Health plans to increase its existing freestanding health centers in Dallas and Calhoun with two more planned to open in Loganville and Newnan, Georgia.
  • Concierge medicine in the form of a personal healthcare assistant to streamline scheduling and  billing and interpreting a diagnosis.
  • Expansion of video doctor visits through partnerships with HealthSCOPE benefits, Doctor On Demand, and Grand Rounds.
  • Different ways to connect patients with specialists.


Takeaway: The CareZone acquisition strengthens Walmart’s ability to become a major player in the mail-order pharmacy market