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- Retail clinics are emerging in three forms; those backed by private entrepreneurs, Mega-Drugstore rollouts
(including CVS, Wal-Mart, Target and Walgreens), and those launched by hospital systems.
- 15% of clinics are owned and run by hospitals, and more than a third of the clinic operator companies are part of hospital systems. (www.healthleadersmedia.com/content/203107/topic/WS_HLM2_LED/Retail-ClinicsFriend-or-Foe-of-the-Hospital-Part-I-The-opportunity-for-hospitals-to-win-with-a-retail-clinic-model.html)
- Retail Clinics vs. Traditional Healthcare
- Retail clinics differ from the traditional PCP visit by capitalizing on convenience; walk-ins welcome, short wait time and significantly lower costs.
- On the flip-side, they’re also staffed mostly by Nurse Practitioners and Physicians Assistants rather than licensed Physicians.
- Clinics are only able to treat/diagnose about 20 common medical conditions, such as ear infections, strep throat, and poison ivy,
these clinics provide prompt basic medical services in addition to immunizations and back-to-school physicals.
- Are these models Successful?
- The number of retail clinics in the US fell by 12 in June 2008 to a total of 969. A study showed that clinics associated with giants such
as Walgreens are doing better than those who run independently.
(http://www.fiecehealthcare.com/story/study-retail-clinic-market-growth-slowing/2008-07-30)
- Location is no guarantee of success. In early 2008, CheckUps (based in Wal-Mart locations) closed 23 retail clinics due to financial stress. (http://www.fiecehealthcare.com/story/study-retail-clinic-market-growth-slowing/2008-07-30) Wal-Mart is now operating “The Clinic at Wal-Mart”
in partnership with local hospitals
and health-care systems. A retail analyst pointed out that the partnership may attract more upscale locals to use the clinics
since it becomes more like stopping in at a location of their health care provider.
(http://blogs.wsj.com/health/2008/02/07/wal-mart-teams-with-local-hospitals-to-open-clinics/)
- The Retail Clinic Consumer
- Seventy percent of all clinic visits are by Gen-X (age 28-42) moms and their kids. (http://www.healthleadersmedia.com/content/203107/topic/WS_HLM2_LED/Retail-ClinicsFriend-or-Foe-of-the-Hospital-Part-I-The-opportunity-for-hospitals-to-win-with-a-retail-clinic-model.html)
- Wal-Mart says 55% of those treated at its clinics are uninsured. (http://blogs.wsj.com/health/2008/02/07/wal-mart-teams-with-local-hospitals-to-open-clinics/)
- Retailers are recognizing more and more “patients” want to be treated as “customers”. They want healthcare to fit into their daily lives rather
than alter their lives to get proper healthcare. Retail clinics are a way to move in that direction. (http://www.managedcaremag.com/archives/0803/0803.retail.html)
- Hospitals are getting in on the Retail Clinic action.
- Hospitals are using retail clinics to grow their primary care practices through clinic referrals while also providing an alternative option to an emergency room visit.
- Partnering with hospitals helps retail clinics gain credibility, but there’s increased responsibility for the hospitals because consumers view it as a “seal of approval”. (http://www.darkdaily.com/laboratory-pathology/laboratory-news/Hospitals-Physician-Groups-Involved-Convenient-Care-Clinics.php)
- Hospitals who utilize the opportunity to open retail clinics as part of their system are enjoying big perks:
- Increased capacity and reduced costs in the Emergency Department by redirecting patients to the clinic.
- Keep patients in network. Ex: A New Jersey hospital scrambled to get clinics up and moving in time to deter CVS’s Minute Clinic from breaking ground.
So far they are still the only clinic in the market.
- Attract new patients into the network by placing clinics in areas further away from the hospital than consumers might have otherwise traveled.
- New method of customer acquisition and brand exposure. Clinics are used as a method to market expensive hospital services and build brand exposure.
- Drive changes in public health.
- Create a channel for new business lines. Ex: Aurora places clinics inside pharmacies that it owns.
- Pilot new technologies with staff who embrace change.
- Understand the new Generation X patient.
(http://www.healthleadersmedia.com/content/203107/topic/WS_HLM2_LED/Retail-ClinicsFriend-or-Foe-of-the-Hospital-Part-I-The-opportunity-for-hospitals-to-win-with-a-retail-clinic-model.html)
- Most analysts are saying it’s too soon to tell if Retail Clinics will continue to grow into a major player on the day-to-day healthcare scene.
It’s possible they’re just a quick-fix for the shortage in primary care.
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