Workforce Management‘s Jeremy Smerd on employers’ emerging approaches to integration of clinics – onsite and/or retail – to their health strategies. Good stuff:
Work-Site Clinics Gain Favor as Retail Sites Lag (February 2010; free registration required)
The wide presence of Take Care’s clinics among employers in New York shows how Walgreens has aggressively tapped into the growing market for work-site medical clinics as part of its effort to rebrand itself as a health and wellness company. Analysts say the move makes sense….
Retail clinics and work-site medical clinics are thought to be complementary, offering different services for different populations….
But growth in retail clinics has stagnated….
Walgreens, meanwhile, has been quick to focus on work-site clinics. In 2007, Walgreens bought Take Care Health Systems, then a retail-based clinic, and the next year acquired two of the largest work-site clinic companies in the country, CHD Meridian Healthcare and Whole Health Management….
For now, Take Care remains the largest company in the fast-growing market for work-site medical clinics. The percentage of employers providing on-site health clinics increased tenfold from 1 percent in 2008 to 10 percent in 2009….
Count us among those who think retail and worksite clinics are complementary – and see the end of this post for at least one management team that also appears to do so.
We’ve commented elsewhere on Brian Klepper‘s February 2010 onsite clinics assessment checklist for Workforce Management, but wanted to include references to both under this topic title (Brian is quoted in the previously cited Workforce Management article). Because we’re here for you, dear reader.
Finally, we’re including this brief 3/1/10 Illinois Daily Herald report on Walgreens recent restructuring announcement (free registration may be required). The restructuring moves management of the pharmacy-benefits services business under Take Care Health founder Hal F. Rosenbluth, “along with workplace and retail clinics”. We’re not yet sure how, but we feel this may be relevant to the onsite/retail clinics strategy dynamic.
EDIT 3/8/10: o-kaaaayyyy, that last story is getting some real attention – here’s a link to Drug Store News’ account, with commentary: Integrating Health Solutions for Payers, Walgreens Unifies Pharmacy, Wellness, Led by Crawford (free registration may be required)
….At its essence, the restructuring is an attempt by Walgreens to integrate and bring to bear all of its more than 8,000 “points of care,” on behalf of employers, government and managed care….The result, according to [Walgreens CEO Greg] Wasson, will be “a unified offering to payers in the healthcare marketplace,” as well as “increased efficiencies across Walgreens’ pharmacy, health and wellness operations.
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Apr 10
Leading Retail Clinic Operators and Employers: What Are They Up To?
We applaud Memphis Business Group on Health for posting a comment & link to Workforce Magazine’s February article on clinics (Work-Site Clinics Gaining Favor Over Retail Clinics, 4/25/10). However, we’re concerned that their blog’s editor may have misconstrued the clinics’ driving impulse.
Worksite Clinics Gain Favor As Retail Sites Lag, written by the invariably astute Jeremy Smerd, is good stuff, laying out a detailed picture of industry trends, and the rising importance in industry leaders’ business models of services specifically tailored to the needs of employers We liked it a lot, & posted our own thoughts on the piece back in March.
Memphis Business Group finds clinics are “focused on cutting employee and employer costs”. We’d urge – strongly urge – their readers to consider that clinics are focused on providing basic services that help keep people healthy, help to maintain their level of functioning health. Cost management can be a happy result of that focus.
We feel there’s a difference in that distinction, so let’s restate it one more time, with feeling. The impetus, the organizing principle, is “help people with routine non-emergency health services”, not “cut costs, then see if we can keep people healthy”. The clinics – and the firms that have intentionally incorporated them in their health strategies – are investing in their populations’ health. It seems unlikely to us that most of them have first trimmed their budget, then chosen what health services to retain.
Consider yourself which starting point is likelier to produce long-term sustainable results….