Why are they doing this? And why should you consider going to Wal-Mart the next time you have a bad cold instead of going to an urgent care center? These are a few questions I'll examine in this post. First let's start with understanding the basics about retail healthcare.
What is retail healthcare?
- Each clinic is typically staffed with nurse practitioners who provide diagnoses and prescriptions located inside retail stores, including drug and grocery stores, and mass merchandisers.
- Clinics offer a limited menu of simple medical services (skin conditions, vaccines, common illnesses and wellness/prevention) on a walk-in basis.
- Clinics are open during extended hours and weekends. Price for a visit ranges from $50 to $75
What is the business model?
In-House Model
- CVS, Target, and Walgreens have their own clinics
- Higher cost strategy but better control
Exclusive Operator Model
- Publix only operates with the Little Clinic
- Easiest to manage
Multiple-Operator Model
- Multiple operators are more complex but provides greater flexibility to match local market needs
- Wal-Mart works with 8 providers
Who are the Providers/Retail Clinics ?
CVS
- 200 clinics
- Purchased 120 Minute Clinics for $170M
- Considering 2,500 clinic target over long run
Walgreens
- 250 clinics
- Acquired Take Care Clinic
Wal-Mart
- 76 clinics across 12 states
- Contracts with: Simply Retail, Redi-Clinic and QuickHealth
Publix
- 8 clinics
- Contracts with the Little Clinic
System Advantages
- Low cost option for uninsured patients
- Significant cost savings for patients and health plans
- Better quality of care for simple procedures
- Retail clinics divert low acuity ER business
- Convenience of not scheduling with physician offices
Retail clinics are very high in customer satisfaction. Customers are ‘very satisfied’ or ‘somewhat satisfied’ with the following:
- 90% care received
- 85% staff
- 83% convenience
- 80% cost
There are many benefits to retail healthcare. These clinics are good for America because they will increase price transparency and promote competition among providers. In addition, they will alleviate ERs of long wait times and provide new options for the uninsured. More importantly, retail clinics are important because they provide an opportunity for you, the patient, to receive better care for simple procedures.
