Rite Aid Corporation
) has entered into an agreement with California-based healthcare
services provider, Heritage Provider Network (HPN) to introduce its
newly started Rite Aid Health Alliance program to the latter's
chronic and poly-chronic patients across Southern California. This
is considered Rite Aid's largest partnership since the company
launched its Health Alliance program earlier this year.
The partnership agreement facilitates the patients of HPN
suffering from chronic and poly-chronic diseases to receive
pharmacy care at select Rite Aid stores where HPN physicians and
Rite Aid pharmacists will work together toward improving overall
health of the patient. We believe the recent strategic move will
help Rite Aid in bringing more customers to its stores which will
ultimately boost its top-line.
Nine affiliates of HPN namely Desert Oasis Health Care; Coastal
Communities Physician Network; Lakeside Medical Group; Bakersfield
Family Medical Center; Sierra Medical Group; High Desert Medical
Group; Heritage California ACO; Regal Medical Group as well as
Affiliated Doctors of Orange County will be participating in the
Rite Aid Health Alliance program.
Rite Aid Health Alliance is Rite Aid's health management arm,
under which it works together with different healthcare providers
to offer holistic care to patients suffering from chronic or
poly-chronic health problems. Including the new Southern California
region, Rite Aid Health Alliance is currently available at the
company's Buffalo, NY; Greensboro, NC; and Hershey, PA area
Started in March this year, Rite Aid has been aggressively
focusing on expansion of its Health Alliance program across all its
stores. In April, the company successfully acquired Boston-based
Health Dialog Services Corporation from Bupa Ltd., a London-based
Health Dialog engages in providing coaching, analytics and
support to make decisions in the healthcare industry. Rite Aid
which competes with
China Nepstar Chain Drugstore Ltd.
) is currently operating this company as a wholly owned
We believe that the integration of Health Dialog will help Rite
Aid expand its Rite Aid Health Alliance across all its stores. The
move is expected to attract more customers to its drugstores.
Rite Aid is the third largest drugstore retailer in terms of
number of stores after
CVS Caremark Corp.
). Rite Aid's sustained focus on enhancing pharmacy and clinical
services through the recently initiated Rite Aid Health Alliance or
its Wellness+ customer loyalty program, along with the remodeling
of its wellness stores bode well for future growth. We believe that
such measures will enable the company to broaden its customer base
and boost the top and bottom lines.
However, the stock currently carries a Zacks Rank #4 (Sell) as
the company's recently reported earnings of 4 cents per share for
the first quarter of fiscal 2015 has shown a steep decline from the
comparable year-ago period's earnings of 9 cents.
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