hospital impact - 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."

146 comments

Comments:

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.

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.

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.

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.

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.

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.

12/16/06 @ 16:43

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.

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Comment from: California Drug Rehab [Visitor] · http://www.hospitalimpact.org/index.php/scoop/2006/10/04/a_second_look_at_retail_clinics

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.

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Addiction recovery and retail clinics could be a futuristic combination of a niche model that we could see down the road.

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Reading this particular article has eccentrically awakened all the part and parcel of mind system that Narconon Vista Bay is the testimony for the sufferers to have an assured recovery. The hospitals should be well preached about the retail clinic system with the necessary glimpse of humanity.

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Comment from: Maisha Sarena [Visitor] · http://www.alcoholabuse.com/

Nice post indeed. And, I would love to see how the alcohol & drug addiction recovery centers along with the retail clinics shape up in future. Interesting times ahead! Cheers!

02/07/09 @ 03:56

Comment from: Lowongan [Visitor] · http://www.indotcom.net/

The only problem is that people are really healthy there and have good access to doctors already. that can be good example.

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This is showing us that health still the most influencing and yet important element of human life. And it's really tradeable. I will do anything to keep me healthy even I should pay for it.

04/02/09 @ 02:41

Comment from: chemotherapy [Visitor] · http://www.addictionexplained.com/addiction-drugs.html

Actually the more clinics the better concept no longer applies as clinics face shortage of qualified doctors. What worries me is we'll have less quality health care after all. I'd rather have the government spend that money on educating our young generation to bring up more quality doctors.

04/05/09 @ 23:02

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"The only problem is that people are really healthy there" - LOL, good point.
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Comment from: mukesh11 [Visitor] · http://www.drug-intervention.com/maryland-drug-intervention.html

Careworks Convenient Healthcare (Careworks) is operated through Geisinger Ventures, the entrepreneurial arm of Geisinger Health System. Careworks retail clinics provide diagnosis and treatment for common medical ailments in well-known retail settings. As one of the early health system entrants in the convenient care movement, Careworks also collaborates with leading health systems to develop retail clinics, providing consulting, development and management services. Careworks is a founding member of the Convenient Care Association.
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04/14/09 @ 02:07

Comment from: chemotherapy [Visitor] · http://www.chemotherapyfacts.com

Hopefully this project is going to work. It sounds optimistic and with nowadays aging population we definitely need more clinics.

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05/04/09 @ 01:04

Comment from: salt lake city dentist [Visitor] · http://www.burgpediatricdentistry.com/

I think retail clinics have generated much interest, promising convenient, lower-cost service for the treatment of minor conditions than conventional care sites can offer. Using health plan claims data, we describe utilization trends, patient mix, and cost per episode of care for the five conditions most frequently treated at a retail clinic chain in the Minneapolis–St. Paul area, as compared with other care settings. Retail clinic use for these conditions is increasing at about 3 percent per year and offers savings of $50–$55 per episode. However, it accounts for only 6 percent of such episodes, and the impact on overall cost and quality remains undetermined.

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Comment from: Harold Vann [Visitor] · http://www.copingwithlife.com

There are some principles which if present will insure success in any store or in medicine, any clinic.
A smile, a friendly voice, a listening ear, some compassion and wise counsil are the basics. The question is how can one obtain wisdom?
The ability to listen to those with more experience in the problem at hand is necessary. We do that with consultants regularly. Next we need to exercise review of old practices and study new information on a regular basis. When there is a standard of care established we need to test ourselves against that standard. We will find the need to improve our practice based on that test on a regular basis. Finally, if our charges are judged to be worth our service we will survive and thrive in the market. Of course, if our market is controlled by our federal government then all bets are off. "Do unto others as you would have them do unto you."

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Patients who use health clinics in retail stores often tend to be people who don’t have a primary care doctor, researchers reported on Wednesday.

Several major drug and grocery stores like Walgreen Co, CVS Caremark and Wal-Mart Stores have begun to offer clinics to consumers where they can be treated for a variety of basic ailments.

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Comment from: John [Visitor] · http://www.lawnandhousedecor.com

Location is a key point, but payer mix also has a lot to do with it when you decide on an area to launch a retail clinic.

06/19/09 @ 11:19

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Good article. I hope we always healthy :D

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Comment from: Alvin [Visitor] · http://foldingchairstation.com

Retail clinics have been mushrooming all over the country since then. In a sense, that is good as we can have a variety of choices. Competition will be fierce and they will try to outdo each other through service quality. But I hope they won't become so commercialized though.

07/21/09 @ 22:45

Comment from: Anthony [Visitor] · http://micrtonerworld.com

Good article. Personally, I don't mind them popping up all over. It makes getting medication much faster and much more convenient. Who can argue with thatTony

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really We should consider ourselves lucky that we live in a country where good rehab programs

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08/04/09 @ 13:57

Comment from: James [Visitor]

Interesting take on retail clinics. Does this then mean that "poorer areas" are better locations though. As far as I am aware, more affluent visitors are more likely to go to the private clinics? Or were you including that in your assessment of the retail ones?

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I live in Canada and there are a difference between the private rehabs and the government funded ones. We have a different health system compared the US. It is better if you can afford a private facility for any health problem. My feeling is that it will be more and more with the private insurance in Canada.

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Surveys indicate that retail-based clinics that promised excellent drug treatment appeal most to higher-income consumers willing to pay for convenience, and uninsured consumers, who have few alternatives and limited flexibility. According to the report, national consumer reviews have been positive and retail clinic numbers were expected to skyrocket from fewer than 100 in mid-2006 to several thousand by the end of 2007.

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Hospital facilities built today do not include asbestos, but many older buildings still have asbestos components in them. Steam pipes, boilers and furnace ducts were often insulated with an asbestos blanket or asbestos paper tape because of their fireproof and insulating properties. Resilient floor tiles were made from vinyl asbestos. Asbestos cement was employed in roofing, shingles and siding materials. The hazard of this carcinogen increases when the fibers become airborne, and untrained contractors can inadvertently increase risks by cutting, tearing, sawing, scraping, or sanding asbestos materials. Elevated asbestos levels can occur in hospitals where old materials are damaged or disturbed. It is best to leave undamaged asbestos material alone if it is not likely to be disturbed. Inhaling asbestos fibers is known to cause mesothelioma and other diseases. Be sure to use an experienced asbestos removal contractor when you need to get rid of old materials that might contain asbestos.

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