May 15, 2012
In-Store Clinics Good for What Ails Chains
Many (most?) doctors and the organizations that represent them are still not happy about clinics located in retail stores, but that hasn’t had much effect in stopping the growth of the health services outlets in CVS, Walgreens and other locations across the U.S.
As drugstore operators such as Walgreens have pointed out in the past, the implementation of the Affordable Care Act (AKA Obamneycare) will bring roughly 32 million new people not currently covered by health insurance into the system in 2014. Doctors’ offices alone will not be enough to address the needs of so many.
Back in 2010, Walgreen CEO Greg Wasson said implementation of the law would "benefit" the chain as "a provider" of healthcare services.
"We’ve said all along that we support the three core tenets of health care reform: improved quality, greater access to care and lower cost." Mr. Wasson said at the time.
CVS now has about 600 MinuteClinics, serving about 11 million people across the U.S., according to Angela Patterson, regional director of operations for MinuteClinics in California, Nevada, Arizona and Texas.
Ms. Patterson told the Las Vegas Review-Journal that the typical MinuteClinic is open 365 days a year for about 10 hours a day providing a convenient way for people to be treated for common ailments that do not require an MD’s immediate attention.
"Some people are able come in before work or school or after work," she said. "The patients really set the hours."
The U.S. Supreme Court heard arguments back in March on the constitutionality of the Affordable Care Act. It remains to be seen what effects an eventual decision by the court will have should justices vote to uphold or throw out parts or all of the act.
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Recent Discussions
Discussion Questions
Discussion Questions: Do you expect the pace of in-store clinic openings to increase, decrease or remain the same between now and 2014? What will happen to the in-store clinic model should the Supreme Court throw out the Affordable Care Act?
Poll
Maybe these clinics are changing. The last ones I saw did not accept insurance and were cash or credit card only. My doctor’s office will now pretty much do what these in-store clinics will do at their price point. That’s the free market at work.
Overall, the Affordable Care Act or not, I don’t think we will see much growth. The clinics are limited in what they can do. Every time I’ve been there, they basically charged me $50 and told me to go see a doctor or hospital.
The success of in-store clinics is not related to the Affordable Care Act. It is something more basic than that.
In-store clinics will continue to grow, if not boom. They hold a sustainable competitive advantage over comparable services. No matter what the future of healthcare in the U.S. brings, there will be tremendous pressures on cost waged by either health insurers, the government or the people themselves. Doctor’s offices and hospitals simply cannot compete. Pricing will force the acceptance of this alternative.
The in-store clinic is a natural extension of pharmacy as a health care center and serves the pharmacy and the client very well.
For many retailers, an in-store clinic is just about renting space. This is not unlike supermarkets having in-store banks. The issue is, can the retailer profit most from renting space or selling products? There is a logical relationship between a clinic and a drug store but not a convenience or club store. Walk-in clinics will increase as they offer a lower cost alternative for many medical needs.
Consumer demand will ultimately drive what happens with health care services at retail. Convenience and access are big attractions, and will probably prove to show good results at achieving better preventive care and early detection of health problems. The convenience of more local clinics and health care services, combined with self-guided research and tools on the Internet, are driving big changes in health care. I think more options and better access will prove to be popular with the public, beneficial to stemming some of the out of control costs to consumers, and the legislators and courts will have to recognize this and work to support these services.
Most clinics accept all major insurance plans, and they are actually expanding their scope of services to become more involved in chronic care. MinuteClinic has stated it expects chronic care to be about 25% of its business within the net few years.
Clinics are even working with Medicare now to coordinate the free annual wellness visits that senior are now entitled to under the Affordable Care Act. And they will play an important role in expanding access and raising awareness by leveraging the pharmacist — last year, only about 6% of eligible seniors took advantage of the free wellness visit. The clinics will change that.
Also, while some doctors may actually be matching clinic prices — although, this is most certainly the first time I have ever heard of it — you most certainly can’t just show up at your doctor’s office without an appointment and good luck getting in on a weekend.
In-store clinics, Affordable Care Act or not, are likely to be an unstoppable force. While it is true that medical doctors tend to denigrate them, the in-store clinics of the major drug chains provide a really useful service. They are accessible. They accept insurance. They are not particularly expensive in the greater scheme of healthcare in the 21st century. Anyone with a minor ailment, not bad enough to warrant the hell of going to the emergency room, but which still needs treatment, can go to these installations. The nurse practitioners address what they are trained to address and quickly recommend a medical doctor if the condition is serious.
At this point, CVS has over 650 in existence and is aiming to get 1,000 up and running by 2016. In its Duane Reade subsidiary, Walgreen last year introduced a Doctor on Premises, a step forward by putting a medical doctor in the clinic.
Another factor promoting the likely expansion of in-store clinics is that the clinics are not isolated add-ons to the drug store format; they are an integral part of the corporate purpose of the two major drug chains, Walgreens and CVS. Both these chains have oriented themselves very publicly and very forcefully into companies that are the go-to resource for pharmacy, remedial health and health maintenance. They have done this by extending themselves, frequently by acquisition, into more areas of healthcare, but all flowing from their pharmacy base and for that reason creating an integrated image of themselves to shoppers.
The in-store clinics are an important part of this vision, and, as such, will receive the resources and support to grow.
In-store clinics will increase between now and 2014. They offer a service, available at hours and locations that are much more convenient for some than visiting a regular doctor for many routine issues. As time goes by, consumers will decide the value of these services; legislation may not impact them significantly.
As the pressures increase on managing the growth of healthcare expense in America, in-store clinics, often staffed by nurse practitioners, represent a viable approach to providing quality healthcare economically. Regardless of the Affordable Health Care Act, the pressures on the cost of healthcare will not decrease over time. It is critical for the success of our nation to ensure that healthcare expense does not become unaffordable in our lifetimes.
The initiatives by Walgreens and other pharmacies to provide a basic level of care in a low-cost model represent one piece of the building blocks that will be necessary for the United States to deliver world-class medical care and not go bankrupt in the process.
This is all about increasing the consumers’ choice and control of their shopping experience. I believe the in-store clinics will continue to evolve. Much of their success has to do with store location. Some clinics have no traffic, while others thrive. More effort should be put into site selection.
In my opinion, these in-store clinics have come up short. Show up bleeding and need stitches, they send you to the emergency room. Show up with an enlarged prostate and they tell you to go to an urologist. Or an eye chalazia to be drained, they tell you to see an eye specialist. These are minor things but can’t be treated in the clinic. Wow, in-store clinic; thanks for nothing! When I see what can be treated, it’s like colds, sore throat, and flu (which there really is no treatment), a flu shot or a sports physical. Most of the clinics I see are mini-ghost towns with the nurse sitting and reading a magazine. If they do have a doctor, he looks like one from the medical marijuana clinics on Venice Beach.
Do you really expect an NP in a retail clinic to examine your prostate?
In-store clinics are expanding their capabilities. The clinic at my local Target store can now take care of many of my travel medical needs including writing prescriptions for Scopolamine and Cipro.
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Maybe these clinics are changing. The last ones I saw did not accept insurance and were cash or credit card only. My doctor’s office will now pretty much do what these in-store clinics will do at their price point. That’s the free market at work.
Overall, the Affordable Care Act or not, I don’t think we will see much growth. The clinics are limited in what they can do. Every time I’ve been there, they basically charged me $50 and told me to go see a doctor or hospital.
The success of in-store clinics is not related to the Affordable Care Act. It is something more basic than that.
In-store clinics will continue to grow, if not boom. They hold a sustainable competitive advantage over comparable services. No matter what the future of healthcare in the U.S. brings, there will be tremendous pressures on cost waged by either health insurers, the government or the people themselves. Doctor’s offices and hospitals simply cannot compete. Pricing will force the acceptance of this alternative.
The in-store clinic is a natural extension of pharmacy as a health care center and serves the pharmacy and the client very well.
For many retailers, an in-store clinic is just about renting space. This is not unlike supermarkets having in-store banks. The issue is, can the retailer profit most from renting space or selling products? There is a logical relationship between a clinic and a drug store but not a convenience or club store. Walk-in clinics will increase as they offer a lower cost alternative for many medical needs.
Consumer demand will ultimately drive what happens with health care services at retail. Convenience and access are big attractions, and will probably prove to show good results at achieving better preventive care and early detection of health problems. The convenience of more local clinics and health care services, combined with self-guided research and tools on the Internet, are driving big changes in health care. I think more options and better access will prove to be popular with the public, beneficial to stemming some of the out of control costs to consumers, and the legislators and courts will have to recognize this and work to support these services.
Most clinics accept all major insurance plans, and they are actually expanding their scope of services to become more involved in chronic care. MinuteClinic has stated it expects chronic care to be about 25% of its business within the net few years.
Clinics are even working with Medicare now to coordinate the free annual wellness visits that senior are now entitled to under the Affordable Care Act. And they will play an important role in expanding access and raising awareness by leveraging the pharmacist — last year, only about 6% of eligible seniors took advantage of the free wellness visit. The clinics will change that.
Also, while some doctors may actually be matching clinic prices — although, this is most certainly the first time I have ever heard of it — you most certainly can’t just show up at your doctor’s office without an appointment and good luck getting in on a weekend.
In-store clinics, Affordable Care Act or not, are likely to be an unstoppable force. While it is true that medical doctors tend to denigrate them, the in-store clinics of the major drug chains provide a really useful service. They are accessible. They accept insurance. They are not particularly expensive in the greater scheme of healthcare in the 21st century. Anyone with a minor ailment, not bad enough to warrant the hell of going to the emergency room, but which still needs treatment, can go to these installations. The nurse practitioners address what they are trained to address and quickly recommend a medical doctor if the condition is serious.
At this point, CVS has over 650 in existence and is aiming to get 1,000 up and running by 2016. In its Duane Reade subsidiary, Walgreen last year introduced a Doctor on Premises, a step forward by putting a medical doctor in the clinic.
Another factor promoting the likely expansion of in-store clinics is that the clinics are not isolated add-ons to the drug store format; they are an integral part of the corporate purpose of the two major drug chains, Walgreens and CVS. Both these chains have oriented themselves very publicly and very forcefully into companies that are the go-to resource for pharmacy, remedial health and health maintenance. They have done this by extending themselves, frequently by acquisition, into more areas of healthcare, but all flowing from their pharmacy base and for that reason creating an integrated image of themselves to shoppers.
The in-store clinics are an important part of this vision, and, as such, will receive the resources and support to grow.
In-store clinics will increase between now and 2014. They offer a service, available at hours and locations that are much more convenient for some than visiting a regular doctor for many routine issues. As time goes by, consumers will decide the value of these services; legislation may not impact them significantly.
As the pressures increase on managing the growth of healthcare expense in America, in-store clinics, often staffed by nurse practitioners, represent a viable approach to providing quality healthcare economically. Regardless of the Affordable Health Care Act, the pressures on the cost of healthcare will not decrease over time. It is critical for the success of our nation to ensure that healthcare expense does not become unaffordable in our lifetimes.
The initiatives by Walgreens and other pharmacies to provide a basic level of care in a low-cost model represent one piece of the building blocks that will be necessary for the United States to deliver world-class medical care and not go bankrupt in the process.
This is all about increasing the consumers’ choice and control of their shopping experience. I believe the in-store clinics will continue to evolve. Much of their success has to do with store location. Some clinics have no traffic, while others thrive. More effort should be put into site selection.
In my opinion, these in-store clinics have come up short. Show up bleeding and need stitches, they send you to the emergency room. Show up with an enlarged prostate and they tell you to go to an urologist. Or an eye chalazia to be drained, they tell you to see an eye specialist. These are minor things but can’t be treated in the clinic. Wow, in-store clinic; thanks for nothing! When I see what can be treated, it’s like colds, sore throat, and flu (which there really is no treatment), a flu shot or a sports physical. Most of the clinics I see are mini-ghost towns with the nurse sitting and reading a magazine. If they do have a doctor, he looks like one from the medical marijuana clinics on Venice Beach.
Do you really expect an NP in a retail clinic to examine your prostate?
In-store clinics are expanding their capabilities. The clinic at my local Target store can now take care of many of my travel medical needs including writing prescriptions for Scopolamine and Cipro.