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Can the Retail Industry Solve the Mental Healthcare Access Problem?

Mental illness and its care remains a major issue within the U.S., with numerous barriers to effective mental healthcare access existing and affecting millions. In many cases, insurance carriers offer limited services. In others, the stigma associated with poor mental health prohibit people from seeking the help they need. With this in mind, innovative solutions are needed. While healthcare systems need to consider new approaches to mental healthcare, other industries are getting involved as well. In fact, retail mental health services are increasingly becoming the norm in many areas.

Major retailers in the nation have recently launched their own versions of retail mental health services. Most are only offering these services in specific areas as a trial run. But over time, each hopes to improve mental healthcare access by expanding these offerings nationally. Many questions remain as to whether such a model will be effective. These types of retail mental health services will certainly improve availability of care. But that doesn’t mean mental healthcare access will actually improve if other obstacles are not addressed. Regardless, exploring how these retailers are approaching this problem is worthwhile.

“…[O]ur aspiration is to make mental health services accessible and locally available so we can address these issues before they continue to expand and result in substantial morbidity and poor outcomes.” – Dr. Daniel Knecht, VP of Clinical Product, CVS Health

Retailers Striving to Meet a Need

For many years, mental healthcare services have been limited. This is particularly true for low-income individuals who often lack insurance or cannot meet out-of-pocket fees. This is complicated by the fact that many mental health providers do not take insurance payments for these services. Likewise, there remains an overall shortage of mental health providers nationwide. Each of these factors have reduced mental healthcare access to people in need. And this growing need is a major reason why companies are thinking about expanding into retail mental health services.

Mental health issues have only grown worse in the last year. (Read about how COVID-19 kicked up the mental health crisis in this Bold story.) During the pandemic, the number of people who admit to anxiety or depression has grown nearly fourfold. At the same time, substance abuse has increase by 27 percent over the course of the year. And economic downshifts have made mental healthcare access even more limited for many. Without effective solutions coming from healthcare sectors, retailers have therefore begun to explore opportunities. Using their economies of scope and scale, many believe retail mental health services may provide the answer to these problems.

“I think it’s a smart model. By expanding availability, you increase visibility — and that helps reduce stigma.” – Dr. Kali D. Cyrus, Psychiatrist, Sibley Memorial Hospital in Washington, D.C.

Companies Exploring Retail Mental Health Services

Several major retailers in the U.S. are making big moves to improve mental healthcare access. CVS, which merged with Aetna 3 years prior, is making the latest headlines in this regard. Beginning in January, CVS began including licensed clinical social workers in 13 sites throughout the Houston, Philadelphia, and Tampa area. As part of these locations’ Minute Clinics, these mental health providers offered assessment, counseling and referrals. Likewise, these retail mental health services included in-person and telehealth options. If successful, CVS plans to expand to 34 locations in these same regions soon.

Someone shopping and using a healthcare app
Mental healthcare services are generally in short supply, but integrating it into retail outlets might be an answer.

Of course, CVS is not alone in exploring these retail mental health services. Walmart now offers in-person mental health counseling at its Walmart Health locations. It similarly provides online services for those in Arkansas with plans to expand these offerings into Illinois and Florida soon. Rite Aid now offers retail mental health services through its teletherapy in several states. And Walgreens has partnered with a variety of mental health companies to expand mental healthcare access to its customers. Based on these developments, it’s evident that retailers believe there is opportunity in the mental healthcare sector.

“The average person doesn’t need intense long-term care. So even if only four meetings were possible with the possibility of a referral, that’s at least going to help the average person feel better — and that’s what’s needed during chronically challenging times like now. I think it’s a great way to get people some relief.” – Riana Elyse Anderson, Clinical Psychologist

Will Mental Healthcare Access Be Improved?

Retail mental health services will definitely make it easier for people to connect with a mental health professional. But that doesn’t necessarily mean they will take advantage of this. Other obstacles exist with the most notable one being cost. In this regard, retailers are trying to make mental healthcare services affordable for those in need. CVS offers an initial consult for $129 with subsequent follow-ups being $69. Walmart offers even lower prices. Their initial visits are listed at $60 with follow-up sessions $45. Compared to current costs for those with limited or no insurance, these price reductions should improve mental healthcare access.

Cost is not the only obstacle, however. The social stigma associated with mental illness remains. Therefore, some may not want to take advantage of retail mental health services because of their public nature. Privacy could be compromised, even if it only involves friends seeing a person walk into a retailer’s mental health clinic. In this regard, online and telehealth offerings may provide better solutions for some patients. This is likely why retailers are considering both options in an effort to improve mental healthcare access to all.

Testing the Market for the Future

Naturally, retailers have not been exploring healthcare services for an extensive period of time. However, mergers and acquisitions have permitted companies like CVS, Walmart and Walgreens to expand their services. While this initially involved primary care services, these companies are now exploring retail mental health services. And each are testing individual markets before launching larger endeavors for expansion. If they are successful in improving mental healthcare access to people, these offerings will become increasingly available. And given the resources these companies have, they could do so at lower cost and higher quality. It will therefore be interesting to see how the initial results of these retailers fare.

 

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The International Business Landscape: China Is Open for Business

Over the course of the last few decades, the international landscape among nations and businesses has changed. While the U.S. plays a central role , other nations also have a tremendous impact. China specifically has emerged as a frontrunner in this regard, particularly in manufacturing. But China’s future plans involves much more than being a global leader in production of goods. As suggested in William Holstein’s The New Art of War, China is open for business, but it’s adopting new business strategies to gain advantage. Staying abreast of these new plans is essential in evaluating just how formidable Chinese competition will be. (Check out an interview with Holstein and a review of his book in this Bold story.)

In prior articles, it has been noted that China’s future plans involves competing in new areas. Cybersecurity attacks, trademark infringements, intellectual capital theft, and advanced use of AI are among these new approaches. But China is now adopting additional policies that expand on these strategies. These new policies suggest that China wants to direct resources toward specific endeavors while limiting others. As a result, Chinese competition is likely to advance in some areas and not in others. With this in mind, the following highlights China’s most recent actions relevant to the international business landscape.

“A key question is what are policymakers in China trying to achieve? One thing is clear. Beijing wants to prevent companies becoming too dominant. “ – William Russell, Head of Product Specialists Equity, Allianz Global Investors

China’s Future Plans in Tech

It’s no secret that China’s approach to its tech industry has been somewhat bittersweet, In past years, it has allowed some tech businesses to grow without state interference. But this appears to be changing rather quickly. Recent pressure from the government has forced some tech companies to halt user registrations. This occurred to Didi, a Chinese ride-hailing service, shortly after its IPO announcement. It also happened to Tencent as China raised concerns about adequate security protections for the gaming and social media giant. Likewise, the state has also been aggressive in efforts against Alibaba with anti-trust actions. These types of tech services are not a place where Chinese competition will take priority.

This doesn’t mean that China’s future plans fail to pursue technology advances and innovations. But rather than encourage tech services that invite independence, China seeks advances in technologies state-controlled. Specifically, the nation’s five-year plan prefers Chinese competition among firms in other tech sectors. These include robotics, agtech, biotech, and semiconductors. Not only will Chinese competition in these areas drive innovation and international advantages. But they will also be under state control to a great extent. These technology investments will also enable China to maintain a leadership position in manufacturing and increasingly become self-sufficient.

“Companies need to have deep technical capabilities to be able to operate these [foreign-produced] robots, but such companies are rare in China.” – Huang He, Partner at Northern Light Venture Capital

Chinese Competition Growth in Robotics

When it comes to Chinese manufacturing, it is among one of the most efficient and predictable in the world. These aspects combined with adequate human resource labor account for China’s leadership position in this area. But times are changing to an extent. For one, younger Chinese workers are less interested in factory work. They would rather perform various jobs within a gig economy than suffer the monotony of many manufacturing tasks. This has resulted in an increasing use of robotics among Chinese firms. But Chinese competition to date in this area has been lacking. Most robotics used today in China are made elsewhere.

Currently, China uses over 1 million 6-axis robots throughout its industrial sectors. Therefore, China’s future plans involve incentivizing domestic development of robotics in an effort to reduce foreign dependence. This would help solve its human labor problem in manufacturing. And it would also further enhance efficiency, dependability, and profitability. Robotics cost less than employees and offer higher quality and productivity. It’s therefore not surprising that China’s future plans seek to encourage greater domestic development of these technologies. If the state can generate strong Chinese competition in this area, they will likely maintain their global manufacturing leadership position.

“The specter of state intervention into controlling the private [education] sector has created a crescendo of panic selling.” – Sean Darby,  Partner at Jefferies

China Is Open for Business… But with Limits

China’s future plans do involve the promotion of competition among Chinese firms in some areas like robotics. But that is not the case with other sectors. Notably, China recently imposed a number of restrictions on private and online education enterprises. Specifically, the state has limited the number of educational hours and the specific content private educational businesses may offer. It also has restricted their capacity for profits and financing. This coincides with China’s social and political philosophies that discourage inequities and disparities among Chinese citizens.

American currency and Chinese currency, together at last
China is open for business, but it’s a business colored by less-than-fair competition and aggressive expansion.

While Chinese competition is valued in areas like robotics, it isn’t necessarily in social activities like education. This is also the case when it comes to social media, Internet service companies, and online activities. However, China’s future plans regarding competition does involve areas like enterprise software and technology hardware. And China’s President Xi Jinping poses little obstruction in accessing other nation’s insights in these areas. From this perspective, China adopts an “anything goes” approach toward international business competition. But within its own state, Chinese competition is tightly regulated in an effort to achieve key industry goals.

Dynamic Strategies for a Dynamic Environment

In some ways, China’s future plans regarding international business competition has not changed a great deal. The new art of war described by Holstein still applies regarding intellectual capital theft, cybersecurity threats, and digital competition. But these will be combined with a strategic use of Chinese competition incentives to drive domestic innovations. In the process, China hopes to improve its manufacturing position and self-sufficiency to an even greater extent. Depending on how other countries react, this may or may not happen. But it’s clear that China has a specific plan designed to further advance its global business leadership.

 

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