http://www.miamiherald.com/business/story/474730.html

By GREGG FIELDS


DANNY JOHNSTON/AP FILE
Unbelievable prices? How does Wal-Mart do it? Just ask the family of Deborah Shank.



It appears that the economy is weakening and, in response, more Americans are cutting spending and preparing for the worst.


I recently decided to do the same. Never mind that
this economic strategy is similar to an investor saying, ''My stocks have all dropped sharply in price, I think I'll sell.'' When the going gets tough, the tough should go shopping to support our retail-oriented economy. But human nature doesn't always work that way.


Fortunately for me, cutting out luxuries isn't a major sacrifice. I'm going with generic salsa, Publix brand chips and a low-cal beer whose label says it is ``Miller like.''


I also decided it was time to change my shopping habits. No more high-end stores for me. Not that I ever went, anyway. Which perhaps explains why most of my clothes are either reversible or flame retardant.


The new prudence led me to Wal-Mart, and I'm here to tell you: They mean it on everyday low prices. In fact, I found their products so affordable, I was incredulous. How did they do it?


I then went home and found out, at least partly, how they're able to roll back prices so much.


It started when I decided to check and see how much my 401(k) has shrunk. Hint: The dollar is having a power rally by comparison.


Perusing the online version of The Wall Street Journal, I saw an item about my newfound retail friend. The headline: ``Wal-Mart Prevails in Case to Recover Health Costs.''


Yes, I know: Wal-Mart has a reputation for an employee healthcare plan that makes wearing a garlic necklace while waving a silver cross at a full moon look like cutting-edge medicine.


But this headline suggested those days are over. Wal-Mart was aggressively working to secure medical funding for its workers, it appeared.
Alas, that was an illusion. As it turns out, Wal-Mart is trying to get money back from an employee.


Her name is Deborah Shank. Eight years ago, the Missouri woman was badly injured in a car accident when a tractor trailer hit her minivan. She was rendered permanently brain-damaged and now lives in an institution.
Wal-Mart's health plan, to its credit, picked up the tab. It came to more than $400,000.


But the world's largest company lost patience when the patient sued the driver who hit her. She was awarded $700,000 in damages.


So Wal-Mart then sued the accident victim, saying Shank should pay back $470,000. That was a bit more than Wal-Mart spent, but the company felt it only fair that Shank pay interest.
It was also more than Shank had. After fees and medical expenses, only $417,000 of the award remained.


Shank's family, noting that she can't work again, felt the Wal-Mart stance was unfair. They fought the Wal-Mart suit and lost at every level. Last week, the Supreme Court refused to hear the case, effectively granting victory to the company with the smiley face logo.
Wal-Mart noted, correctly, that its plan requires it to try to recover its expenses when an employee gets a third-party settlement. Experts have noted that many companies have similar policies.
Still, it's kind of hard to fathom how Wal-Mart couldn't see the special characteristics of this situation. For instance, the family has just $10,000 to care for Shank for the rest of her life. She's 52 years old.


According to CNN, the family's financial situation is such that Shank's husband has divorced her because it increased her Medicaid benefit. (Does this country have the greatest healthcare system in the world, or what?)


Secondly, Wal-Mart's annual sales are more than $375 billion. It's the biggest company in the world. I realize that it can't cure every social ill with its money, nor should it be expected to.


But surely it could protect all of its workers left brain-damaged by terrible accidents. How big could that group be?


It's true: We all like everyday low prices. But I'm not sure providing for Shank would jeopardize our right to buy Chinese-made apparel.


Wal-Mart's revenue of roughly $1 billion a day comes to $41 million every hour 24/7. Shank's judgment, then, equals roughly six minutes' worth of sales.


Sounds like a bargain to me.


Gregg Fields, a former Miami Herald business writer, is coordinator of the master's in business journalism program at Florida International University. He can be reached at fields@fiu.edu

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