Costco is one of the most well-known brands in the world, praised for its strong brand recognition, loyal customer base, and incredibly dominant market position. The company has positioned itself as an icon in good times and bad because it provides a plethora of daily necessities to members who pay annual membership fees.
But Costco is more than just a home goods retailer. The company offers a variety of unique products, from insurance to travel packages, that other retailers haven’t yet tackled.
In this spirit, the company announced last week that it is partnering with Sesame Health, a well-known healthcare provider, to provide affordable healthcare to its members. Sesame has an innovative healthcare delivery model. Connect patients directly with doctors without intermediaries. Intermediaries are usually responsible for increased medical costs. The company explains:[doctors] on Sesame uniquely lists prices, availability, and services without premium increases or surprise charges. Sesame puts power back in the hands of patients and doctors, cutting out middlemen who drive up costs and saving up to 60% on treatment costs. ”
With this new partnership, Costco members now have easy access to Sesame’s services, including virtual primary care services, testing services, and mental health resources.
David Goldhill, co-founder and CEO of Sesame, explains:[quality]the Costco brand is known for great value and low prices […] When it comes to health care, Sesame offers high quality, great value, and low prices that Costco members appreciate when it comes to their care as well. ”
This is just the beginning of Costco’s ambitions in healthcare. The company already offers a robust suite of services in the healthcare space, including optical services plus a dynamic pharmacy footprint. As the company gradually moves into the primary care space, it has tremendous potential to make a real difference. According to the report, Costco will have nearly 119 million members in 2022, and that number has likely increased significantly since then. If even 10% of these members start relying on Costco for their health care services, this could represent a huge opportunity for the company and the communities it serves.
Additionally, given its extensive presence, well-established supply chain, and incredible brand loyalty, Costco is a top choice in this industry for everything from pharmacy delivery to home health care to customized value-based care. There are many other ancillary opportunities that you could potentially pursue.
With this new move, Costco joins the ranks of many other retailers that are gradually entering the healthcare delivery market. For example, Best Buy acquired Current Health in 2021 with the aim of entering the home health care industry. Walmart has significantly expanded its medical services and now provides medical care in many states. Even technology companies are entering the healthcare market. Take, for example, Amazon, which acquired One Medical to enter the primary care market, or Oracle, which acquired Cerner, a well-known electronic medical records company.
These companies are entering this space with one theme in mind: patients want care that is truly valuable, affordable, and easily accessible. Indeed, with our market presence and large footprint, Costco has a unique opportunity to impact our communities and provide patients with the health care services they need.
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