Unraveling the Funnel Wars: Walgreens’ Pivot and What It Means for Primary Care

The Walgreens Retreat: What It Says About the Future of Primary Care

At one point, Walgreens, Walmart, Amazon, and other retail giants seemed poised to redefine primary care, using their expansive footprint to disrupt traditional health systems. Now, as Walgreens announces it’s going private and possibly offloading VillageMD, the cracks in that strategy are showing. What does this shift mean for health systems? And more importantly, what does it signal about the future of primary care?

The Rise and Stall of Retail Healthcare

Walgreens made aggressive moves into healthcare, acquiring VillageMD and leaning heavily into the idea that retail clinics would become the go-to entry point for patients. The logic was simple: with a Walgreens on nearly every corner, they could provide convenient, affordable primary care.
But the reality has been far more complicated. Walgreens is now shifting gears, returning focus to pharmacy while looking to sell off some of its healthcare investments. This follows a broader trend—Walmart shutting down health clinics, Amazon struggling to integrate One Medical, and other retail entrants pulling back. The grand retail healthcare takeover isn’t happening as expected.

What’s Really Happening in Primary Care?

This upheaval isn’t just about Walgreens—it’s about the state of primary care itself. The demand for primary care is at an all-time high, yet access is shrinking. Staffing shortages, financial pressures, and shifting patient behaviors are making traditional models unsustainable. Some health systems are doubling down on primary care, while others are reconsidering its role altogether.

Key stats paint a concerning picture:

• 83 million Americans lack access to primary care.
• Primary care visits dropped to 25% between 2008 – 2016
• Millennials and Gen Z are skipping traditional primary care in favor of urgent care, telehealth, and self-service options.

The Big Questions for Health Systems

So, where does this leave health systems? The Walgreens pivot raises major questions:

• Should health systems re-invest in primary care, or rethink the entire model? Some are experimenting with AI-driven care, concierge models, and virtual-first approaches.
• Is primary care evolving or disappearing? Patients may no longer need or want a single “quarterback” for their healthcare. Instead, they may assemble their own care teams across different platforms and providers.
• Can health systems capitalize on retail’s failure? If Walgreens and others are backing away from healthcare, does that create an opportunity for traditional providers to reclaim their dominance—or is this a sign that the primary care model itself needs reinvention?

The Funnel Wars: A Prediction in Motion

In Joe Public 2030, the Funnel Wars prediction laid out a future where traditional health systems would battle retail and tech giants for control over the top of the patient funnel. But as Walgreens and others pull back, it’s clear that dominating primary care isn’t as easy as anticipated. This shift forces health systems to reconsider their own role—should they step up to reclaim primary care or pivot to new models of engagement? The answer will determine who thrives in the evolving healthcare landscape.

What Comes Next?

The primary care landscape is changing fast. Retail healthcare isn’t the answer many thought it would be, but the demand for access isn’t going away. Health systems that can adapt—by leveraging technology, expanding access points, and rethinking patient engagement—will be the ones that thrive in this new era.

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