In a press release distributed this morning, Wal-Mart has announced that it is “once again driving unnecessary health care costs out of the system and passing the savings along to its customers through the pharmacy aisles.”
How is it doing it this time? By offering exclusive-to-Wal-Mart diabetes management products for $9 each at all Wal-Mart pharmacies nationwide. That, might I say, is quite excellent actually. I myself don’t have - and don’t have immediate family members who have - diabetes. But I’ve known and worked with people who do, and one thing an individual with diabetes shouldn’t have to worry about is the cost of testing and treatment supplies, which I could imagine can get quite expensive.
No, the problem with this story isn’t in what Wal-Mart is announcing. It is, instead, the way in which Wal-Mart has treated its own employees who have diabetes. Helping the masses might seem a little nicer if the company treated its own diabetic employees with slightly more compassion and understanding.
The gold standard of what I’m talking about is the story of Stephen Orr. Orr worked as a pharmacist at a Nebraska Wal-Mart. Orr has Type 1 diabetes, a condition in which the body does not produce insulin, a hormone needed to convert sugar, starches and other food into the energy needed for daily life. As a result, Orr must administer insulin to himself several times each day. For a while, management allowed him to, you know, do the things he needed to do over the course of a day to stay alive...like actually take a lunch break. Eventually though, business and customer traffic forced Wal-Mart - instead of hiring an additional pharmacist - to inform Orr he could no longer take a break to eat and rest. In fact, he was told to eat behind the pharmacy counter if and when store traffic slowed. If you can’t guess what happened, I’ll tell you - Orr’s blood glucose levels dropped severely on multiple occasions, causing him to experience symptoms of hypoglycemia, which can include dizziness or lightheadedness, confusion, difficulty speaking, and feeling anxious or weak. Wal-Mart still refused to accommodate him, and his manager eventually fired him, explicitly telling him it was because of his diabetes.
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Posted by Corey Himrod | Permalink
Wal-Mart has, unsurprisingly, been the target of more lawsuits than one can count over the years. The company’s treatment of its workers and “save money at all costs” mentality has resulted in a flood of legal challenges ranging from single plaintiff suits to multi-million dollar class actions. Dukes v. Wal-Mart is of course one large example (the largest class action in American history, actually), as are the myriad wage/hour/overtime class actions the company faces.
At Wal-Mart Watch will be focusing on one of these stories each week, highlighting those cases that warrant further attention because of the light each sheds in its own way on how Wal-Mart does business.
Deborah Metcalf v. Wal-Mart Stores East
In the process of scouring the country searching for egregious examples of Wal-Mart malfeasance, we came across this interesting little case filed earlier this year in Oklahoma. On its surface, it’s a retaliatory discharge case – however, the plaintiff here, Deborah Metcalf, was fired for blowing the whistle on what should be considered some pretty repulsive conduct.
Among the many programs funded by the United States Government, we’re going to focus on one in particular – the federal WIC program. WIC stands for Women, Infants, and Children, and is a special supplemental nutrition program funded by grants by the U.S. Department of Agriculture and administered in Oklahoma by the OK State Department of Health. Basically, WIC provides food and education to low-income women, infants and children deemed eligible for the program. The program’s website tagline delivers the following:
The Special Supplemental Nutrition Program for Women, Infants, and Children - better known as the WIC Program - serves to safeguard the health of low-income women, infants, & children up to age 5 who are at nutritional risk by providing nutritious foods to supplement diets, information on healthy eating, and referrals to health care.
Deborah Metcalf, at the time of her firing, was an employee working at the Wal-Mart Pharmacy located within store #47 in Sallisaw, Oklahoma. In 2001, the Sallisaw Wal-Mart became a participant in the WIC program. Before we go any further, perhaps a little more information is needed on how the WIC program works:
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Posted by Corey Himrod | Permalink
WORKERS’ RIGHTS DEFENDANTS ASK FEC TO INVESTIGATE WAL-MART
Anyone who reads our blog regularly has undoubtedly already seen this article. Here are some reactions to it from the blogosphere.
Tell the FEC to Investigate Wal-Mart for Electioneering [ZP Heller on the Huffington Post]
Wal-Mart must be forced to set a better example regarding labor practices. And here’s our chance to make them by signing American Rights at Work’s petition. If Wal-Mart broke the law by threatening and scaring employees about which candidates to vote for this November, compel the FEC to hold the company accountable.
Unions strike back at Wal-Mart [BloggingStocks]
Why is Wal-Mart set to pick a fight with the Democrats? Don’t the folks in Bentonville read the political tea leaves? Odds are pretty good that the country will go Blue in a big way. Maybe the company is worried that the good times reflected in today’s results won’t last.
Wal-Mart: Political Bully [Alternet]
For years, Wal-Mart has been plagued by bad press. Now it has to fend off a Wall Street Journal report that it’s been politically bullying its employees. ANP headed over to a Wal-Mart in Virginia to ask shoppers what they think.
Wal-Mart busted on video for lying to employees about their rights [The G Spot]
It’s unclear whether Wal-Mart will face any legal consequences for the lies they told. But the Journal article notes that action has been taken on another front: labor groups have filed a complaint against Wal-Mart with the Federal Elections Commission. They’re asking the commission to investigate whether the meetings Wal-Mart organized around the country warning thousands of employees about the consequences of electing a Democratic president violated the law (you can find the complaint here). Will the F.E.C. take action? It seems like there’s a decent shot they might.
After the jump, life as a Wal-Mart pharmacist, Sam’s Club’s dubious green claims and design wonks hold their own Wal-Mart redesign contest.
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Posted by Alex Goldschmidt | Permalink
Wal-Mart spokeswoman Daphne Moore has been a busy woman recently after having to comment on yet another legal verdict handed down against the retailer.
“We believe in respecting the dignity of every individual and do not tolerate any form of discrimination,’’ spokeswoman Daphne Moore said in a phone interview.
A three-judge panel in New York saw it differently, upholding part of a $7.5 million award given to Patrick Brady, a former Wal-Mart employee who claimed Wal-Mart gave him a less-desirable job because he has cerebral palsy. Brady had worked for two years at another pharmacy before getting a job as a pharmacy assistant at the Centereach Mall Wal-Mart in 2002. On his second day on the job at Wal-Mart, however, Brady was transferred to another position picking up garbage and bringing in shopping carts from the parking lot.
Brady was originally awarded $7.5 million in damages, included $5 million in punitive damages, in 2005. His final judgment, per the Americans with Disabilities Act and New York state law, has been reduced to $900,000.
Wal-Mart Loses Appeal, Must Pay $900,000 to Worker [Bloomberg]
Wal-Mart Stores Inc., the biggest U.S. private employer, lost its appeal of a jury verdict in a discrimination case and was ordered to pay $900,000 in damages.
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Posted by Corey Himrod | Permalink
Fifteen in-store Wal-Mart clinics unexpectedly shut down in Colorado on Friday, raising yet more questions about the hotly-debated facilities. The clinics were run by SmartCare, an independent clinic operator, and located in Wal-Mart stores across the state of Colorado. Neither Wal-Mart nor SmartCare gave reason for the unexpected closures.
This isn’t the first time Wal-Mart clinics have closed suddenly. In January, Wal-Mart clinic operator CheckUps shuttered all 23 of its Wal-Mart locations almost overnight. The company disappeared so quickly many of its staff were left unpaid. Amidst these troubles, Wal-Mart has also tried to open clinics under its own name, but with little success. The clinics - to be run by staff from Arkansas’ St. Vincent’s hospital - were slated to open in April 2008, but have yet to do so.
The sudden closings do little to allay consumers’ worries about the clinics. The Illinois State Medical Society expressed concerns in May, 2007, that the clinics are unregulated and unlicensed. Others raise issues with the clinic operators’ lack of experience in the medical field. The recent closings only serve to enhance the clinics’ “fly-by-night” reputation.
Making health care more accessible is important, but the quality of that health care is critical. As Wal-Mart expands its health care offerings and does more to keep employee health care expenses in-house, will doing things on-the-cheap really cut it?
SmartCare closes 15 Wal-Mart med clinics [Rocky Mountain News]
SmartCare Family Medical Centers on Friday unexpectedly shut its 15 in-store health clinics located in Wal-Mart stores throughout Colorado.
Wal-Mart had no prior notice, company spokesman William Wertz said.
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Posted by Alex Goldschmidt | Permalink
Wal-Mart offers more low-priced drugs [Reuters]
Wal-Mart Stores Inc on Monday said it has expanded its low-priced drug program, and will now offer certain 90-day generic prescriptions for $10 and sell more than 1,000 over-the-counter medicines for $4 or less.
Starting on Monday, the world’s largest retailer said that pharmacies at its discount stores, its Neighborhood Markets, and its Sam’s Club warehouse locations will fill prescriptions for up to 350 generic medications for $10 for a 90-day supply.
It also said its Wal-Mart Stores and Neighborhood Markets will sell more than 1,000 over-the-counter items for $4 or less without a prescription.
Wal-Mart has been working to expand its health and wellness services, which are seen as a way to drive shoppers into its stores more frequently and boost sales.
In 2006, it began selling certain generic drugs for $4 per monthly prescription, and it is also opening in-store health clinics.
Posted by Alex Goldschmidt | Permalink
WAL-MART ON THE GREEN WARPATH
It was a big week for Wal-Mart’s environmental campaign. The company announced a new carbon measuring program for its suppliers, AND Lee Scott spoke with President Bill Clinton at the Clinton Global Initiatives Annual Meeting. Clinton gushed about Wal-Mart’s environmentalism; bloggers were more skeptical.
We’ll Drink Beer for the Cause [Grist]
Unrelenting in its quest for eco-domination, Wal-Mart has announced a plan to keep tabs on some suppliers’ energy efficiency. Through a partnership with the Carbon Disclosure Project, Wal-Mart will request emissions data from about 30 companies that collectively supply DVDs, toothpaste, soap, milk, beer, vacuum cleaners, and soft drinks. (Sure they’re all commonly used, but—random, anyone?) The project is very much a wee first step, as Wal-Mart has about 68,000 suppliers; the company has not yet determined whether it will use the information gleaned to actually demand that suppliers reduce emissions.
Clinton Global Initiative: Bill and Al, reunited at least [Grist]
Lee Scott, for his part, announced that Wal-Mart would reach its goal of selling 100 million compact fluorescent bulbs by the end of the year. Nice and all, but it seems to me that Wal-Mart should pledge to only sell compact fluorescent bulbs.
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Posted by Alex Goldschmidt | Permalink
New legislation, set to be introduced by Maryland Democrat Chris Van Hollen, would allow states to use their purchasing power to negotiate drug discounts for low-wage workers in much the same way as they do for people on Medicaid. The program would cover those with no drug coverage and incomes less than the federal poverty level, as well as those with insurance but limited or no prescription drug coverage and the elderly on Medicare whose coverage runs out.
Attempts have been made in the past to ease the prescription drug burden on low-wage workers, including failed attempts at laws forcing drug makers to cut prices, and fair share bills aimed at requiring large employers such as Wal-Mart to provide health insurance to employees.
Wal-Mart introduced its $4 generic drug program in 2006, allowing consumers to buy certain generic prescription drugs at lower prices. While that program covers approximately three hundred drugs, many of which are different generic versions of the same drug, Van Hollen’s bill would provide patients with a discount card that could then presumably be presented at pharmacies towards the purchase of any prescription.
Bill Would Let States Force Drug Discounts [The Washington Post]
U.S. Rep. Chris Van Hollen is preparing legislation that would allow states to make prescription drugs more affordable for low- and moderate-income Americans, a challenge to Bush administration policies that have thwarted such efforts in Maryland and elsewhere.
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Posted by Corey Himrod | Permalink
“AMA Wants Probe of Store Clinics” [Associated Press via Forbes]
The American Medical Association wants authorities to investigate whether quickie retail-based health clinics run by pharmacy chains pose conflicts of interest that put profits ahead of patient health.
The nation’s largest physicians’ group on Monday adopted a resolution vowing to seek an investigation after several AMA doctors complained that the clinics interfere with the traditional practice of medicine.
The AMA wants state and federal agencies to look into whether pharmacy chain-owned clinics located in the stores urge patients to get their prescriptions filled on site, which the AMA maintains would pose a conflict. It also said that insurance companies should be banned from waiving or lowering co-payments only for patients who get treatment at store-based clinics.
A spokesman for Deerfield, Ill.-based Walgreen Co., which operates 63 clinics in its stores in six states, said customers aren’t steered to Walgreen pharmacies, and are allowed to get prescriptions filled wherever they choose.
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Posted by Web Team | Permalink
[From WWAY NewsChannel 3 in Wilmington, North Carolina]
She says a pharmacy foul-up is causing her to go blind. Now a Southport woman is taking on a big business.
For three straight days Gracie page has affixed herself to a sign of protest.
She says it’s time the little people stand up to big corporations.
Page said, “You can’t knock the little fellow down and keep going.”
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Posted by Web Team | Permalink
Wal-Mart’s recent announcement that it plans to introduce 400 new in-store health clinics over the next several years has raised concerns throughout the medical community. In a release issued today, the Illinois State Medical Society insists that poorly-regulated health clinics operating without permits or government oversight - as Wal-Mart’s health clinics currently do - pose a sizeable risk to public health. This in addition to the fact that the clinics are often operated by companies of questionable medical expertise. From the Chicago Tribune:
Doctors push law on clinics in stores
The Illinois State Medical Society, which represents more than 13,000 doctors, is pushing a proposed law to more closely monitor hundreds of in-store clinics being opened by retail giants Wal-Mart Stores Inc., Walgreen Co. and CVS/Caremark Corp.
The doctors claim the clinics, staffed by advanced-degree nurses and physicians’ assistants, are largely unregulated and therefore put patients’ health at risk.
The Illinois group said it also will lobby for federal laws aimed at increasing regulation of the clinics at the annual American Medical Association meeting next month in Chicago.
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Posted by Alex Goldschmidt | Permalink
Apr04
CNBC on Wal-Mart
CNBC discusses Wal-Mart’s corporate spying controversy, new emergency contraception regulations for pharmacists.
Posted by Alex Goldschmidt | Permalink
Planned Parenthood announced today that it has been notified by Wal-Mart that the retail leader has revised its nationwide corporate policy regarding emergency contraception. The new policy ensures that customers will receive their prescriptions of over-the-counter products without discrimination, harassment or lecture. Emergency contraception such as the Plan B pill will now be stocked and dispensed without discrimination or delay.
This is a turnaround from previous Wal-Mart policy” – last year, Wal-mart agreed to begin stocking Plan B with the caveat that the company’s conscientious objection policy, which allowed pharmacists uncomfortable with dispensing certain prescriptions to refer customers to another pharmacist or pharmacy, would remain in effect. Plan B was approved for over-the-counter sale in mid-2006, meaning a prescription is no longer required for women 18 or older.
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Posted by Corey Himrod | Permalink
From the Murfreesboro (Tenn.) Daily News:
Consumers might not be getting exactly what they bargained for with Wal-Mart’s new $4 drug program — which now lists 50 of its generic drugs as costing $9, not $4.
The issue is confounding some consumers, as well as the Tennessee Association of Pharmacists, which is thinking of challenging the legality of Wal-Mart’s drug plan if the chain’s practices are found to be illegal under state fair trade law.
Dr. Baeteena Black, executive director of the Tennessee Association of Pharmacists, said she had been getting calls and e-mails about Wal-Mart’s plan. Black said consumer protection laws about pricing are set up to discourage monopolies and encourage competition.
“Those laws were put in place in the 30’s, and they have been amended a few times,” Black said. “It has never been amended specifically relative to pharmacy or health care issues.”
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Posted by Russ Fagaly | Permalink
From today’s New York Times:
Wal-Mart boasts that its new $4 generic drug program is disrupting the market, attracting new customers to its stores and starting the nation on a road that will ultimately squeeze billions of dollars from prescription drug spending.
Certainly the program has produced waves of favorable publicity and buffeted the share prices of drugstore chains and wholesalers. It has also prompted a big rival, Target, to announce a similar pricing plan recently for some generics.
“The $4 prescription program is absolutely one of the coolest things that we have done in a long time,” H. Lee Scott Jr., chief executive of Wal-Mart Stores, recently told Wall Street analysts.
But two months into the program, it is unclear whether in all cases Wal-Mart is meeting its stated goal of making a profit on the $4 drugs. Earlier this week the company disclosed that it had begun charging $9 for some prescriptions in states that have unfair-competition laws against selling products below cost.
And as Wal-Mart finds itself off to a disappointing start of the holiday sales season, it is still not clear whether $4 drugs are indeed disrupting drug retailing and helping generate significant new consumer traffic — or instead mainly giving a break to people who are already Wal-Mart customers and can spend their pharmacy savings in the stores’ many other aisles.
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Posted by Russ Fagaly | Permalink
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