Best Buy Health sells at-home tech company back to founder
As electronics and appliance retailer Best Buy sought to expand its healthcare wing, it made a massive $400 million investment in at-home care technology company Current Health in 2021. Now, as Best Buy Health looks to restructure after posting losses, it's sold the acquisition back to the original owner for an undisclosed amount.
Christopher McGhee, a co-founder of Current, announced the buyback on LinkedIn, writing that the “future of healthcare is in the home and the community, and we have a role to play in that transformation.”
Current will be taken private under the leadership of McGhee as part of the deal, with the company calling the shift a “new beginning” and a chance to “return to scrappiness and that startup spirit, rolling up our sleeves and moving quickly—with patient safety and customer experience at the center.”
“We've helped more than 70,000 patients receive the healthcare they need from home. We're proud of the work we've done so far and look forward to the next phase of this journey,” the company wrote on social media.
Best Buy Health recently disclosed in financial reports that, in Q4 2024, the division was losing money and is now liable for a non-cash goodwill impairment charge of $475 million.
However, the outlook was not all bad. The retailer, which has inked major deals with health systems including Mass General Brigham, Geisinger and Atrium Health, said it’s finding success in healthcare products focused on senior health, such as wearables and emergency care devices.
The same can’t be said for its at-home health division, which has hit some snags, both in terms of market demand and regulatory changes to reimbursement. In offloading Current, Best Buy signals it may be changing course and narrowing the focus of its healthcare brand to more consumer-oriented markets, as opposed to working directly with providers to aid in the remote care needs of their patients.
In statements released to the media, Best Buy said it will aid transitioning patients who rely on Best Buy as Current ramps back up and takes over those accounts once again.
Although terms have been agreed to and the sale is official, it’s not clear how long it will take for the full transition. It’s also unclear whether Best Buy shareholders will need to approve the divestment in a vote.
Consumer retail brands stepping back from healthcare
As Best Buy Health was initially ramping up, other retailers such as Amazon and Walmart were taking a similar path, both investing heavily in direct patient care clinics. Amazon continues to operate One Medical as part of its core healthcare brand, but Walmart has since exited healthcare completely—aside from its vision care and retail pharmacy businesses, which remain part of its stores.
In 2024, when making the announcement, Walmart said it "determined there is not a sustainable business model" to justify continuing its healthcare division, which was simply not profitable.
Best Buy Health’s website still advertises a variety of connected care services, including remote patient monitoring and support for the delivery of healthcare services at home. It remains to be seen how their messaging will shift as the brand moves forward.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.