Walmart Adds Low-Cost Surgical Procedures

Hospitals better get ready for some new competition! This morning, Walmart announced plans to offer discount surgical procedures, with an initial focus on liposuction. Liposuction procedures typically costs more than $6,000, but Walmart will price lower and upper abdomen liposuction at $249.99. Clearly, Walmart is following the price leader strategy that allowed it to become the country's fourth-largest pharmacy.

Here’s a telling comment from the press release:

“We view liposuction as a true lifecycle product for Walmart consumers,” said David St. Hubbins, M.D., chief medical officer at Walmart’s Health and Wellness Division. “As America’s number one seller of lard-based snack products, Walmart has provided unparalleled support for the nation’s obesity epidemic. Now, we can provide a low-cost solution to this ever-growing market segment.”

Walmart claims to be the retailer of choice for 83% of Americans who weigh more than 350 pounds. The company expects 29% of its liposuction customers to be "double dippers"—consumers who will take advantage of Walmart’s low food prices to regain the weight, and then purchase a second lipo procedure.

Another positive tailwind is favorable legislation, such as Mississippi’s new law outlawing the sale of soft drinks in containers smaller than 20 ounces.

Read my comments below for speculation on what this means for hospital marketing and med-surg distribution channels.

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You know what? I just realized that it’s April Fool’s Day again!