The 3rd installment in Sean Deale’s series of reports on retail clinics (Retail Clinics: The Evolution of CVS’s Minute Clinic, Sean Deale, In-Store Trends, 5/9/12) zeroes in on industry leader MinuteClinics and specifically the barriers to more rapid growth of clinics for MinuteClinic and other industry participants.
(Installment 2, posted April 19, ably recounted the establishment & growth to date of Walgreens’ Take Care Clinics, but failed to mention anything about Take Care’s initiatives in the area of operating on-site clinics for employers – which to be fair is probably in keeping with In-Store Trends editorial charter).
Sean asks this pair of keen questions in installment 3:
Why has the Minute Clinic not made its way into ALL of CVS’ 7,300 stores in the US? Is there a major barrier to entry for retailers considering the introduction of retail clinics?
In answer, Sean identifies five major hurdles for clinics operators generally. We found all basically on point, especially the first:
Awareness – the overall concept and availability regionally has been slow to penetrate consumer awareness beyond for flu shots
We feel Sean may have overlooked the role that the existence of urgent care clinics has played in the gradual introduction of retail clinics. His post does consider the opportunity that long ER wait times and waits for physician appointments present to clinic operators, but it does not take into account the existence of between 7 & 9 thousand urgent care clinics, which serve a market quite similar to that targeted by retail clinics.
Our back-of-the-envelope calculations indicate that if clinics are intelligently sited, there is plenty of demand to go around; for example, considering only visits to emergency rooms that might be more appropriately treated at retail or urgent care clinics, each current clinic would be faced with 40 to 50 patients per day.
But the key word with respect to siting is intelligently. Maybe locating smart is part of what is taking retail clinics so long to grow in numbers.
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12
Apr 12
Retail Clinics: Health Care, Leveraged
Only one installment in his promised series has been published so far, but we’re already enjoying Sean Deale’s Retail Clinics: Retailers Leveraging In-Store Services (Sean Deale, In-Store Trends: Where Retailers Begin Store Innovation, RetailNet Group, 4/11/12)
Installment #1 is a concise summary of where retail clinics stand today, as one could expect, but we liked this observation concerning a concern frequently expressed about retail clinic firms’ rollout strategy:
Most responses to the Ateev Mehrotra-led RAND study he cites expressed dismay that retail clinics were not sited to serve currently underserved US populations. While those criticisms have some merit, we know of none who simultaneously recognized Sean’s point – that clinics attract patients even in the presence of available conventional primary care. Mehrotra’s research supports this assertion and goes further to note that the retail clinics do not seem to cannibalize conventional primary care clinicians’ practices.
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