Colleen Lindholz, president of Kroger Health, spoke about the grocery store's plans to expand further into healthcare.
Thursday, April 25, 2019

Kroger: 'Our vision is to help people live healthier lives'

With about 2,300 pharmacies and 221 retail clinics, Kroger Co. maintains a sizable footprint to compete in healthcare. At the center of the grocery store giant's healthcare plans are initiatives to improve prescription drug delivery in a way that benefits consumers and promotion of 'food as medicine.'

I spoke with Colleen Lindholz, president of Kroger Health, about the company's ambitions, what goals they have set, and what obstacles remain ahead.

Reminder: Our 2019 CFO Exchange held at the American Club in Kohler, Wisconsin from August 7 - 9, is on the horizon! 

If you're the CFO of a health system and interested in attending, follow the link here for an invitation. 
 

Lead story
Kroger Health President Talks 'Food as Medicine,' Prescription Drug Prices
Colleen Lindholz, president of Kroger Health, spoke about the grocery store's plans to expand further into healthcare.
 
 

Q1 Healthcare Earnings Roundup

  • BayCare Health System: The Clearwater, Florida-based nonprofit health system saw revenues top $4 billion while net income dropped nearly $600 million in 2018.
     
  • Centene Corp.: The St. Louis-based insurer reported total quarterly revenues of nearly $18.4 billion, up 40% year-over-year, and beat its adjusted earnings per share estimate by $0.07.
     
  • Anthem Inc.: Most of the conversation on the Indianapolis-based insurer's quarterly earnings call centered around the upcoming launch of its PBM: IngenioRx.

 

analysis
Healthcare Industry Most Focused on Consolidation, Consumerism in 2019
  • Industry consolidation was listed as the most important trend of the year, leading the way with 25.2% of the votes, followed by consumerism at 14.4%.
     
  • Definitive Healthcare tracked 803 mergers and acquisitions along with 858 affiliation and partnership announcements last year, a trend that is not expected to slow in 2019.
     
  • Thirty-five percent of healthcare M&A activity occurred in the long-term care field, according to CEO Jason Krantz.
analysis
Critics Warn Premiums Will Rise Under CMS' Tweaked 2020 Subsidy Formula
  • The agency said its methodology will better reflect the individual market.
     
  • Critics said the change may not be legally justified.
     
  • According to Jason Levitis, a nonresident senior fellow at Yale Law School's Solomon Center for Health Law and Policy, the change would reduce the affordability of health insurance and result in fewer people having coverage.
analysis
Medicare Trust Fund to Fall Short After 2026, as Costs Continue to Rise
  • This year's annual report affirms last year's finding that one trust fund will have enough money until 2026.
     
  • The news comes as Medicare costs are projected to accelerate from about 3.7% of GDP last year to about 5.9% of GDP in 2038.
     
  • Officials took the opportunity to bash Medicare for All proposals as unworkable.
analysis
CMS Launches Value-Based Primary Care Initiative With Downside Risk
  • HHS anticipates that 25% of traditional Medicare beneficiaries will opt into the initiative, which will launch in January.
     
  • The models incentivize providers to reduce hospitalizations and cost of care by rewarding them through performance-based payments.
     
  • There is downside risk of 10%, about the equivalent of revenue cycle costs. There is an upside potential of 50% that will be based on risk-adjusted hospitalizations.
analysis
Lyft Expands Grocery Access Program to Combat 'Food Deserts'

  • The grocery access program provides families in underserved communities with $2.50 shared rides through Lyft to nearby grocery stories.

  • The expansion will now make the program available in 13 additional cities across the country, as well as in Ottawa and Toronto.

  • Lyft's announcement comes two weeks after its rival Uber registered for its long-awaited initial public offering.
analysis
CMS Proposes Wage Index Hike for Rural Hospitals
  • The proposal aims to solve a disparity that CMS says can create 'a downard spiral' for low wage index hospitals.
     
  • That means a decrease for high-wage index hospitals.
     
  • CMS Administrator Seema Verma: "This would have a huge impact on rural communities that have been forgotten by previous administrations."
 
 

Must Reads
 

Final Notes

If you have any tips, story ideas, thoughts, calendar items, press releases, criticisms, corrections, or general advice, send them my way at jobrien@healthleadersmedia.com.

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That's all, folks.

Jack O'Brien
Finance Editor