Over the next year, Best Buy (NYSE: BBY) expects to grow its Best Buy Health sales faster than its base business as it leans more heavily into its at-home care platform.
“The role of technology within health care is becoming more important than ever and our strategy is to enable care at home for everyone,” Best Buy CEO Corie Barry said Thursday during the company’s earnings call. “We also expect to drive a higher mix of our more profitable and unique service plans and deliver cost optimization in our active aging business.”
As is the case with many of its retail peers, home-based care and aging services have become a point of focus for Best Buy.
Current Health — Best Buy’s care-at-home technology platform — had its best commercial booking year ever in 2022, Barry said.
Current Health’s platform includes remote patient monitoring, telehealth, a full support model and patient engagement tools. The company partners with health care providers across the country.
“We now have relationships with five of the top 10 largest health systems in the U.S.,” Barry said. “These names include Geisinger, Mount Sinai Health System, NYU Langone Health and others. 40% of our provider clients were launched in Q4, demonstrating our momentum.”
Best Buy also recently signed on to a three-year partnership with Atrium Health. The partnership will leverage Advocate Health’s hospital-at-home program and Best Buy’s technology expertise, Barry said.
“We are excited about the momentum of care at home, but it is still a nascent emerging part of the health care industry,” Barry said. “We are essentially nurturing a startup within a large-scale organization and leveraging Best Buy’s core assets — including the Geek Squad — to incubate a new business. The revenue contribution is currently very small and will take time to ramp as the care at home space matures and expands over the coming years.”
Best Buy’s net income fell by 21% to $495 million in the fourth quarter from $626 million year-over-year.