Retail health clinics, which have been around since 2001, and until recently have been profit question marks, are having their moment in the sun.
A recent report by Accenture Consulting predicts that the clinics sector will grow at an average annual rate of 14% through 2017, when their numbers will exceed 2,800, compared to 1,914 in 2014.
“Retail health clinics are impacting the broader U.S. landscape by offering a new, lower-cost peer channel,” said Alan Nalle, Accenture’s Senior Manager-Retail Strategy, in a video clip that accompanied the release of the report.
Accenture Consulting predicts that retail health clinics will exceed 2,800 in the U.S. in 2017. Insurers favor these clinics over more expensive urgent care or emergency room options. Image: Accenture Consulting.
Accenture says that retail health clients have been closing their “profitability gap” by shifting their focus from “retail” elements, and emphasizing the clinical in three distinct ways:
• Clinics are expanding their services to broaden appeal: More retail stores are bringing the pharmacist out from behind the counter to interact directly with patients—“something many in the industry see as a clear differentiator,” Accenture points out.
Other new services include primary and preventive care, pediatrics and wellness, health screening and testing, chronic disease monitoring and management, and transitional care. Walgreens’ Health Clinics now offer chronic care assessments and medication reconciliation. Walmart recently launched new primary care clinics that offer more sophisticated services—like chronic disease management—than patients can receive at the retailer’s other health centers.
• Retail clinics are investing in healthcare IT to expand their roles: Leading organizations are purchasing more advanced medical equipment and records management systems. For example, CVS Health’s MinuteClinics have been installing a proven electronic health record system nationwide, which makes it easier to transmit clinical data to regional health information exchanges.
• Clinics are working with partners to coordinate care: Target, for one, is partnering with Kaiser Permanente to launch a number of retail clinics in California that provide greater levels of service and information sharing between clinics and the integrated delivery network. Services include pediatric and adolescent care, family planning, wellness for women and the management of chronic conditions such as high blood pressure and diabetes.
Likewise, Walgreens is collaborating with one of the largest health systems in the U.S., Trinity Health, to coordinate patient care to improve outcomes and increase access to care while reducing overall costs.
Some healthcare providers are teaming with clinics, and exchanging files electronically, to provide their patients with after-hours care. Image: Accenture Consulting.
Nalle noted that all of these changes have been wins for consumers, who now have greater healthcare convenience and access.
Payers have also found the expansion of retail health clinics to their liking, said Nalle. “Increasingly we’re seeing our payer clients offer lower copay or waive copays for clinic visits,” to redirect volumes of patients who might otherwise go to more-expensive urgent care or emergency room care.
For providers, the expansion of retail health clinics is a double-edged sword. On the positive side, some providers are using retail clinics as a way to offer after-hours access to patients. “But some might view clinics as competition,” says Nalle. So providers have two choices: to partner with clients via electronic record exchanges, or to compete, with extended office hours, or extended coverage.
There is no question, however, that retailers see clinics in more in terms of growth and profit. During a speech they delivered at America’s Health Insurance Plans Institute and Expo in Las Vegas earlier this month, Larry Merlo, CVS Health’s CEO, and Dr. Troyen Brennan, its Chief Medical Officer, noted that the cumulative cost of chronic illness alone is expected to increase to $42 billion by 2030.
“I believe the way to find solutions is to look at the problems through the eyes of your customers, and at CVS Health, we are working to do just that by collaborating with stakeholders across the health care continuum including patients, caregivers, providers and payers to provide better, more cost-effective care.”
Last December, CVS Health acquired all of Target’s pharmacies and retail clinics in 47 states, and a CVS Pharmacy will be included in all new Target stores. This acquisition expanded CVS Health’s pharmacy footprint by approximately 20% and its clinic footprint by about 8%.
Related Stories
Giants 400 | Aug 19, 2022
2022 Giants 400 Report: Tracking the nation's largest architecture, engineering, and construction firms
Now 46 years running, Building Design+Construction's 2022 Giants 400 Report rankings the largest architecture, engineering, and construction firms in the U.S. This year a record 519 AEC firms participated in BD+C's Giants 400 report. The final report includes more than 130 rankings across 25 building sectors and specialty categories.
Daylighting | Aug 18, 2022
Lisa Heschong on 'Thermal and Visual Delight in Architecture'
Lisa Heschong, FIES, discusses her books, "Thermal Delight in Architecture" and "Visual Delight in Architecture," with BD+C's Rob Cassidy.
| Aug 16, 2022
Cedars-Sinai Urgent Care Clinic’s high design for urgent care
The new Cedars-Sinai Los Feliz Urgent Care Clinic in Los Angeles plays against type, offering a stylized design to what are typically mundane, utilitarian buildings.
| Aug 15, 2022
IF you build it, will they come? The problem of staff respite in healthcare facilities
Architects and designers have long argued for the value of respite spaces in healthcare facilities.
AEC Tech | Aug 8, 2022
The technology balancing act
As our world reopens from COVID isolation, we are entering back into undefined territory – a form of hybrid existence.
| Aug 3, 2022
Designing learning environments to support the future of equitable health care
While the shortage of rural health care practitioners was a concern before the COVID-19 pandemic, the public health crisis has highlighted the importance of health equity in the United States and the desperate need for practitioners help meet the needs of patients in vulnerable rural communities.
Healthcare Facilities | Aug 1, 2022
New Phoenix VA outpatient clinic is one of the largest veteran care facilities in the U.S.
The new Phoenix 32nd Street VA Clinic, spanning roughly 275,000 sf over 15 acres, is one of the largest veteran care facilities in the U.S.
Building Team | Jul 12, 2022
10 resource reduction measures for more efficient and sustainable biopharma facilities
Resource reduction measures are solutions that can lead to lifecycle energy and cost savings for a favorable return on investment while simultaneously improving resiliency and promoting health and wellness in your facility.
Healthcare Facilities | Jun 22, 2022
Arizona State University’s Health Futures Center: A new home for medical tech innovation
In Phoenix, the Arizona State University (ASU) has constructed its Health Futures Center—expanding the school’s impact as a research institution emphasizing medical technology acceleration and innovation, entrepreneurship, and healthcare education.
Healthcare Facilities | Jun 20, 2022
Is telehealth finally mainstream?
After more than a century of development, telehealth has become a standard alternative for many types of care.