Thread by @C_Garthwaite

If you're interested in healthcare strategy -- this is a must read. There are two sets of compelling stories here.

First, can retail pharmacies transition into the coordinating mechanism for people with chronic conditions.

Obviously, in the current form they siimply can't (1/5)

https://twitter.com/AishaAlMuslim/status/1113801316449624064

But these organizations are transforming their physical stores to have new sets of assets and activities.

The new "health hubs" or "health centers" will have more space dedicated to healthcare and likely new providers to help make the chronically ill healthier (2/5)

Can they succeed in creating value here? Unclear.

But even if they can, the really hard part is even if they create value it isn't clear they will be able to capture that value as profits -- their ultimate goal.

After all, a healthier patient really benefits the payer (3/5)

This is where the two firms' different strategies becomes interesting.

CVS is betting if you want to pull this off you need to be integrated up and down the supply chain.

Walgreens is betting they can accomplish all of this via contracts and avoid integration costs (4/5)

The difference is about control. CVS owns the chain and has ultimate control of the assets. They don't have to worry about an incomplete contract or misaligned incentives.

But they also lose the benefits of the external market.

Will be interesting to see who's right! (5/5)