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Costco Enters Health Care Services Market

10/03/2023

Major retailers Walmart, Amazon and Costco are entering into health care through marketplace Sesame.  Costco members will be able to purchase online primary care visits for $29 and additionally other services including mental health counseling.  Sesame does not accept health insurance and requires direct payment.  Sesame was founded by David Goldhill in 2019 to “bring marketplace dynamics to consumer health care.”  The company has raised venture capital funding with a $27 million series B round lead by Google Ventures.

 

Sesame maintains that “the future of retail shopping will include doctor visits and prescription medications.”  Chris Coburn, Chief Innovation Officer for Mass Brigham General in Boston noted, “The Costco model may potentially reduce demand on emergency care sites but will not have a significant impact on the use of tertiary and quaternary care urban institutions even in the near term.  Major hospital groups continue to provide care for patients with serious or complex health issues.