Best Buy recently reported $109 million in charges related to restructuring at its health unit in the first quarter of the year. The electronics retailer began the restructuring process after recording a non-cash goodwill impairment charge of $475 million in the previous quarter. This impairment was due to a downward revision in the long-term financial projections for the health segment.
The company’s health business focuses on providing technology and logistics support for home care services, including in-home health services for seniors, remote patient monitoring, and hospital at home programs. Best Buy has made several health technology acquisitions in recent years, such as purchasing emergency response firm GreatCall and senior remote monitoring company Critical Signal Technologies. In 2021, the company acquired home care platform Current Health and has partnered with health systems like Mass General Brigham, Geisinger, and Atrium Health.
Despite the success of its active aging services and parts of its care at home business, Best Buy has faced challenges in scaling its in-home health services. CEO Corie Barry mentioned during an investor call that the future of the federal government’s hospital at home waiver is uncertain, which has contributed to the slower growth of this segment. The CMS’ Acute Hospital Care At Home program, initially introduced during the pandemic to increase hospital capacity, has only been extended for short periods, creating inconsistency in the program’s duration.
Financial struggles among healthcare providers have also posed challenges for scaling hospital-at-home programs. Hospitals have reported difficulties due to market volatility, tariffs, and potential policy changes, such as Medicaid cuts. Despite these challenges, Best Buy remains optimistic about the future of its health unit. CFO Matthew Bilunas mentioned during the earnings call that the company expects benefits from ongoing efficiency and effectiveness initiatives, including at the health unit.
Barry emphasized the importance of technology in healthcare and the trend towards individuals taking more control of their health using technology devices. Best Buy sees a future where technology plays a significant role in healthcare, and the company will continue to focus on this strategy. As the healthcare landscape evolves, Best Buy remains committed to leveraging technology to empower individuals to manage their health effectively.
