Youll Be All Rite

Rite Aid announced major cuts

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What's going on?

The US healthcare landscape is shifting, and cracks are starting to appear: pharmacy chain Rite Aid announced a major management shake-up on Wednesday.

What does this mean?

Rite Aids three most senior bosses are departing, along with 400 other corporate workers. Once a stalwart of the US drugstore industry, Rite Aids recent performance has left something to be desired: its shares have sickened 60% over the last year, thanks to three straight quarters of losses and the collapse of a proposed sale to American grocer Albertsons.


Elsewhere in healthcare, mergers are in vogue. From medicine makers to the insurers that pay for them, everybodys teaming up…

Why should I care?

The bigger picture: US healthcare 2.0.


Historically, healthcare worked on volume successfully treating as many people as possible but its now shifting toward value. Wellness and prevention, rather than illness and treatment, look like the future along with price transparency, a lack of which has been ailing the system. Indeed, legal transparency requirements are currently under consideration in the US. And while the old healthcare gods struggle to adapt, new entrants are popping up to fill the gaps offering, for example, time- and money-saving online prescription delivery services.



For markets: Change equals opportunity.


In the US, healthcare spending was $3.5 trillion in 2017 $10,739 per person and its forecast to reach $5.7 trillion by 2026. Rite Aids shares rose 6% on Wednesdays news: it looks like investors agree a change was in order, stat. But Amazons already well on the way to launching a healthcare company of its own and we all know what happens when Amazon gets involved.

Originally posted as part of the Finimize daily email.

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