A Healthcare Solution Fueled By Data And Crisis
Dear Rundown Reader,
Unless you’ve lived under a rock for the past five years you know Sears Holdings Corp. is on its last legs.
This week the company announced closures of 72 more Sears and Kmart locations.
There’s not much left to say about Sears.
They’re a sinking ship without a captain.
Today we propose a groundbreaking solution.
We hope CEO Eddie Lampert is a reader.
He’ll like this…
Today, how a move into healthcare could be the way Sears saves itself.
Your Rundown for Friday, June 1, 2018…
This Is How Sears Saves Itself
Sears’ best shot at saving themselves from bankruptcy is a move into healthcare.
The idea is to turn failing Sears and Kmart stores into thriving walk-in healthcare facilities.
We think it’s perfect shot in the arm for Sears and healthcare.
For one thing, it’s great way for Sears to make some cash off it’s cache of vacant stores.
And it could also be a great way to make healthcare more accessible, more transactional, and more consumer friendly.
Why do we think this plan could work?
New data is tells us this trend is already taking hold.
Yesterday, Mary Meeker presented her 2018 internet trends report at the Code Conference in Silicon Valley.
Meeker is a venture capitalist and former Wall Street securities analyst. In the tech investing world she’s a god.
According to data compiled by Meeker, insurance costs have risen 4% for Americans since 1999. Coupled with that is a marked increase in deductible costs.
The result is paradigm shift in how consumers shop for healthcare.
Folks more than ever before are focused on value.
According to a report by Recode, Meeker claims we can “expect healthcare companies to offer more modern retail experiences, with convenient offices, digitized transactions and on-demand pharmacy services.”
And we can’t think of a better way to capitalize on this trend than with a Sears/Urgent care company merger.
For instance, say Envision Healthcare Corp (NYSE: EVHC) decided to partner with Sears.
Envision could have 72 new, low-cost healthcare facilities in premier consumer locales.
And we’re sure Envision, or a company like them, could save a ton of in overhead costs by using Sears’ multifunctional store fronts, which could help reduce costs to consumers.
Sure it’s wild-eyed idea.
But as bad as things are for Sears and U.S. healthcare, it might be the drastic move that’s needed.
Now, turning to the markets this morning…
Market Rundown for Fri., June 1
Yield on the 10-Year Treasury sits at 2.915% this morning, up 0.093.
S&P 500 futures are up 12.25 to 2,717.
Oil’s down $0.49 to $66.55.
Gold’s down $2.80 at $1,301.
Bitcoin goes for $7,388 this morning, according to CoinDesk.
Have a great weekend.
We’ll talk again on Monday.
For the Rundown,