Post details: A second look at retail clinics

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A second look at retail clinics

October 4th, 2006

by Tony Chen

Previously I joined with others in predicting that the number of retail clinics will be in the thousands in 18 months or so. Consumerism is too strong of a force. Simple, quick, convenient healthcare is way too compelling to pass up. I'm still a believer.

But, let's not forget that it's still a retail business and is ruled by the laws of retail business models - location, location, location.

Case in point: Take Care is in the process of closing down all 10 of their clinics in Portland. I might be reading between the lines here, but it seems like they didn't want to pilot there to begin with, but their partners at Rite Aid convinced them. Portland is a good-sized 2nd-tier American city. The only problem is that people are really healthy there and have good access to doctors already.

One more thing to consider - Target decided to part ways with MinuteClinic even after a great 2.5 year partnership. MinuteClinic was quickly bought up by CVS. Again, read through the link here, I may be reading between the lines too much. It sounds to me that Target's not fully bought into the concept yet - it's still in pilot stage. Did MinuteClinic really want to grow faster than Target was comfortable with?

So, to recap:
- money is still POURING into retail clinics
- hundreds of clinics will be opening within the next 6-12 months
- it smells like a landgrab situation, with lots of clinic operators partnering with national big-box retailers
- Like any retail business, location, location, location still applies

In the 1980s, every hotel trying to just stay in the game had to have a pool (and now in 2006, every decent hotel has to have a spa). Same situation here? Any retailer worth anything will have to have a little health clinic? You live down the street from Target and Wal-Mart. One has one, the other doesn't? Is that enough to change your mind?

For me, definitely, if I need something there.

So if the retail clinic is like the hotel pool of the 1980s, what is like the hotel spa? In 2010, once most retailers have a clinic, how will they continue to differentiate their stores? "Today, we are offering a $100 winterization treatment, which includes your flu shot, a 15-minute massage, the new designer scarf, a hot chocolate at our in-store cafe, and a discount on this family package of cold medicines."

Comments:

Comment from: Lavinia Weissman [Visitor] · http://www.workecology.com/redesign2
Hello Tony,

Actually, futurists have predicted that fewer people will go to a "Rite Aid" first and try an over the counter solution before they go to a clinic. Now we have the "Whole Foods" solution where a cordial person with some education can advise someone on what over the counter treatment might work.

Portland has a high density of LOHAS consumers (lifestyle of the health and sustainable) that can be assumed based on their wide spread environmental practices and density of organic farming.

It's an interesting dichitomy to think about and then translate into thinking about consumer need of hospitals.

I would love to hear from people outside major cities dominated by teaching hospitals to learn more about how they see the role of the community hospital and how the growing size of LOHAS consumers will influence community changes.

There is a growing system of thought now appearing in Boston with Beth Israel Deaconess Hospital Decision to raise $350m in philanthropy to devise community programs while its competitors at Brigham and Women's (Partners) keep raising money to grow more buildings.

I don't think we have tackled the ambivalence we have in the US to look at redefining the use of a hospital bed. I believe Dr. Bill Thomas with his efforts supported by the Heinz Foundation and Robert Wood Johnson F oundation is going to push the envelope on this with the building of Green Houses for the baby boomers that keep them active and out of nursing homes. It maybe this growing initiative of cullturea and change will push the hospitals to rethink the shape and substance of their building strategies into community centers of care.

One group (I believe) in Louisianna already tore down nursing home beds and replaced Green Houses on its propertis. Good food for thought, here.

I am now playing with more ideas to teach with on how philanthropy can change the face of health care and help leverage today's hospital worker into a facilitator of healthy communities.

Best to all,
Lavinia
Permalink 10/04/06 @ 11:50
Comment from: Conference [Visitor] · http://conceptsinsuccess.com/ccres/Commercial/4.php
I would love to hear from people outside major cities dominated by teaching hospitals to learn more about how they see the role of the community hospital and how the growing size of LOHAS consumers will influence community changes.
Permalink 10/04/06 @ 12:49
Comment from: Tim Gee [Visitor] · http://www.medicalconnectivity.com
Tony, I believe consumers are just as resistant to change in health care as those of us on the other side of the table. The retail clinic is starting to feel like the online grocery store of the late 90s.

Certainly convenience (location) and trust will play key roles. I hope it flies - I would certainly like to take advantage of the convenience when the need exists.
Permalink 10/05/06 @ 19:23
Comment from: Dennis E. Go, MD [Visitor]
I am a paediatrician in private practice in a 45,000 size town. My thought on the retail clinics are that the people that use them may be the worried well. We don't have any in our region yet. I am going to tell my patients that if you call me at night about an illness that was treated at the retail clinic, I may charge you for a phone call. I think it fragments care and, for children, certainly doesn't provide a medical home.
Permalink 10/06/06 @ 11:23
Comment from: hospitaltony [Member]
I've heard that 25-30% of folks that come in don't have a PCP. Most of the retail clinics have some sort of mechanism to work with local systems to feed them in.
Permalink 10/06/06 @ 12:12
Comment from: JB [Visitor]
One thing to think about with this new model is technology. We will have a ubiquitous electronic medical record platform in the (hopefully) not-too-distant future.

Combine EMR with telemedicine and algorythm-based care models and suddenly the local MD isn't as much the keeper of all knowledge.

The key is, don't bet on things staying the same as they are now. Consumers will demand lower cost and better access, and as soon as they realize that technology can enable this they'll demand the current system (which has not really changed, ever) be marginalized.

The model isn't there yet, but it's getting much, much closer.
Permalink 12/14/06 @ 23:34
Comment from: Kevin Letz [Visitor] · http://www.cliniciansconsulting.com
Location is just one aspect of making these clinics successfull. The services they offer is also key along with giving nurse practitioners decision power.
Permalink 12/16/06 @ 16:43
Comment from: Cristian [Visitor] · http://www.yissum.co.il/
Technology Transfer Company offer great networking services and imagine those clinics and a big network that provides fast access to medical care.
Permalink 02/11/08 @ 11:27
Comment from: notmini [Visitor]
If you want to open a new clinic in a smaller town it's bound to fail fast. People already have their local doctors they trust. New clinics can survive by specializing in addiction treatment or other particularized services.
Permalink 02/12/08 @ 12:27
Comment from: MAEMI [Visitor] · http://www.bestfirstaidsite.com/ebook.html
First visit to your site. Interesting. Thank you.
Permalink 03/10/08 @ 00:04
I think that people should go and resolve their problems there. Any clinic is good this time. More doctors means more help for people in need.
Permalink 04/12/08 @ 19:51
Comment from: Jim [Visitor] · http://dobilomania.suge-o.com
Currently, there are over 1,000 CCCs and alcohol rehab clinics located throughout the United States. Most CCCs are open seven days a week – twelve hours a day during the workweek and eight hours a day on the weekend.
Permalink 04/15/08 @ 15:28
Comment from: DrugRehabsCenters [Visitor] · http://www.drugrehabscenters.com/
Drug addiction cases in females of age 24-38 have been increased tremendously. These women are mostly working women. They are indulged in this activity due to the atmosphere in which they work. Thus many specialized drug rehabilitation centers have been established which provides treatment only to women.
http://www.drugrehabscenters.com/
Permalink 05/06/08 @ 02:00
Comment from: Tom [Visitor] · http://www.addictionrecovery.net
Addiction recovery and retail clinics could be a futuristic combination of a niche model that we could see down the road.
Permalink 05/31/08 @ 13:43
Comment from: Bill [Visitor] · http://www.drugrehabcenter.com
yeah, but a drug rehab in a mall type thing does not sound very effective.
Permalink 05/31/08 @ 13:45
Comment from: Herbs and Vitamins Cheap [Visitor] · http://vitanetonline.com/
Let us treat the problem with a little bit of logic: the population is raising at a fast pace and more clinics will serve us all and of course we have to control the quality of the services that these clinics have to offer.
Permalink 06/04/08 @ 11:24
Comment from: Addiction of drugs [Visitor] · http://www.drugrehabscenters.com/
The prevention of addiction of drugs is depends upon type of substance addicted. The various substances like nicotine, caffeine, heroin, morphine etc causes different effects on individual’s health. Hence this rehab center gives treatment according to type of substance affected.

http://www.drugrehabscenters.com/
Permalink 06/28/08 @ 05:45

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