Rite Aid (RAD) Announces JV Between RediClinic & MultiCare - Analyst Blog

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In an attempt to enhance healthcare services in the greater Seattle region, Rite Aid CorporationRAD announced a joint venture between RediClinic and MultiCare Health System.

While RediClinic is one of Rite Aid's wholly owned subsidiaries, MultiCare Health System is a non-profit health care organization that caters to the Puget Sound region via its wide service channel. Through this collaboration, both the aforementioned companies will jointly open 11 RediClinics in certain Rite Aid pharmacies.

RediClinic has served over 1.5 million consumers since 2005, by providing simple access to superior-quality and affordable healthcare facilities. These include a wide range of preventive services like medical tests and screenings, among others. This partnership will extend the reach of these services to Seattle.

Also, this deal is likely to enhance the existing relation between MultiCare and Rite Aid, as the former already operates a convenient care clinic in one of the latter's pharmacies.

Further, the RediClinics in Seattle will have trained MultiCare nurse practitioners, who are authorized to treat over 30 common medical conditions and also write prescriptions when required, working jointly with MultiCare affiliated physicians.

Rite Aid is the third largest drugstore chain in terms of store count, following Walgreens Boots Alliance, Inc. WBA and CVS Health Corporation CVS .

This Zacks Rank #3 (Hold) company continues to gain momentum from its focus on strengthening its portfolio of health and wellness services. We are impressed with Rite Aid's sustained focus on enhancing pharmacy and clinical services through its Health Alliance and Wellness+ customer loyalty program, along with the remodeling of its wellness stores.

Further, we believe that such measures will enable the company to broaden its customer base while enhancing both top- and bottom-line performances.

A better-ranked retail stock is Sprouts Farmers Market Inc. SFM , with a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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