February 13, 2013
Are Clinics the Key to Winning the Retail Healthcare Race?
An aging population and up to 30 million newly insured people without regular doctors are just two of the reasons that many see in-store clinics as a means for retailers to capture share of the growing healthcare market.
The rationale behind the clinics make sense: a consumer visits a store for a physical, a vaccination, etc. and winds up also purchasing prescription medicines, over-the-counter remedies and other products that may or many not have anything to do with their medical condition.
As a Bloomberg News piece points out, former Walmart CEO Lee Scott was bullish enough on the concept to announce back in 2007 that the chain would have 2,000 clinics operating in its stores by 2012. Mr. Scott’s vision did not come to fruition, however, as only 130 clinics now operate in Walmart stores. Third-party providers who operate clinics in Walmart locations complain, according to the report, of a lack of support from the retailer.
On the other end of the spectrum is CVS with its MinuteClinic operation. Today, the chain is opening about three new in-store clinics a week and plans to go from its current 630 number to 1,500 in the space of four years.
Walgreens, which also slowed in-store clinic openings since the Great Recession hit, is looking to ramp up its Take Care facilities again. The drugstore chain currently has 364 clinics in operation.
"Everyone who plays in this space is expecting a big bump on January 1, 2014," Peter Hotz, vice president of Take Care Health Systems, told Bloomberg. "With President Obama being re-elected, it’s full-steam ahead."
BrainTrust
Recent Discussions
Discussion Questions
Do you expect to see a rapid increase in the number of stores with in-store clinics in the years to come? Will the winner of the in-store clinic competition also see corresponding gains in related healthcare categories?
Poll
I’m not so sure this will be a fast growing segment, but I think it will grow. It’s nice to have your insurance all hooked up with Walgreens to get a free flu shot. However, I really have not seen any where I can get a physical. Oddly I have not found an in-store clinic that could do a simple prostate examination, yet I can get it done in a trailer at the baseball park parking lot for free plus two free tickets. When I’ve stopped in at an in-store clinic with some kind of ailment, they always refer me to a doctor or hospital, so it was a waste of time and money.
My doctor’s office has become more efficient and now matching prices and services offered at these clinics to keep from losing business. Since the clinic really can’t do anything more than take your temp, blood pressure, or swab your throat, and refer you to a doctor, I might as well just go to my doctor.
MinuteClinics in our area heavily promote sports physicals for teenagers participating in school sports programs. Our family has made use of them a number of times for minor ailments and always received prompt and professional service without having to go to a physician. An added bonus is that the service is covered by our insurance and only requires an in-service co-pay.
I remember investing in this concept 25 years ago, I forget what it was called. Didn’t catch on back then proving once again that I am ‘ahead of my time’ (which is a lot better than being called a loser!).
Here’s an issue and, weirdly, it’s not unlike the Dollar Store column in today’s RW. If you have to go to the in-store ‘clinic’ the image is you also shop at dollar stores…it’s pretty well a parallel track. Do you get the ‘best’ stuff in a dollar store? No. Do you get the ‘best’ care in a Walmart clinic? Maybe, maybe not. Are both relatively “okay?” Probably.
The word ‘clinic’ extends into the word ‘clinical’ which carries intonations of sterile, stainless steel, unfeeling, colorless, regimented, inflexible and cold experiences. It’s “clinical.” You don’t really expect anyone to actually care and take the time to get to know you and your circumstances. You walk in, you walk out. Frankly it’s likely you have nowhere else to go. That’s the simple reality.
But let’s go to the possibilities…
What if there was a story attached to the “clinic?” A large poster of the nurse, physician’s assistant or doctor on duty that day, a story about why they do what they do, why they actually do care – making them human and connectable right at the entrance? What if a little money was spent making it look inviting, instead of looking like the employee lunch room? Apparently paint comes in colors now. And for goodness sakes, looking at shelves of patient files really does nothing for the soul.
Lots of us aren’t in a position to go to the doctor on the cover of “The 10 Best Physicians in Phoenix” or use the valet parking at the Mayo. But with a little imagination and new thinking we can create easy access to helpful and caring health resources.
I believe there are certain situations that lend themselves to the in-store clinic concept. As mentioned, flu shots, sports physicals for children, maybe children’s vaccines, etc., all dictated by the limitations of the staff in the clinic. What they ‘can’ do versus what requires a referral.
Once the retailers figure all this out and find ways to promote and let the consumer know exactly what they can get and what they can expect, I see these clinics as adding value and some relief to other medical facilities.
Clinics are tactics. Success will be achieved by those who link customer touchpoints for total and meaningful differentiated benefit for the customer.
A big part of the discussion that is not present is ownership and responsibility, in relation to potential for malpractice litigation. Even the “relatively” small one-on-one (doctor vs. patient) lawsuits carry staggering settlements that are crushing the medical industry and its ability to grow.
When we look at the disastrous corporate effects of successful plaintiff class action suits, the decision to go third party and the subsequent roll back in support by Walmart is no surprise.
The health care industry as a viable add-on to the retail industry is an opportunity only for the most daring, with the constant threat of fatal downsides. With there being very few visions of sustainable growth in retail today, the acceptance of this level of risk is arguably madness and cause for investors to reconsider their confidence.
In short, not a good idea.
In-store clinics make sense for their convenience, just as in-hospital pharmacies do. However, there is one BIG difference. Store foot traffic is perceived as healthier. The drive-up window is great for keeping some illness outside the walls, as well as being convenient. I just think a certain part of the population will shy away from places where they see their sick neighbors. It all depends on how the clinics are run.
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I’m not so sure this will be a fast growing segment, but I think it will grow. It’s nice to have your insurance all hooked up with Walgreens to get a free flu shot. However, I really have not seen any where I can get a physical. Oddly I have not found an in-store clinic that could do a simple prostate examination, yet I can get it done in a trailer at the baseball park parking lot for free plus two free tickets. When I’ve stopped in at an in-store clinic with some kind of ailment, they always refer me to a doctor or hospital, so it was a waste of time and money.
My doctor’s office has become more efficient and now matching prices and services offered at these clinics to keep from losing business. Since the clinic really can’t do anything more than take your temp, blood pressure, or swab your throat, and refer you to a doctor, I might as well just go to my doctor.
MinuteClinics in our area heavily promote sports physicals for teenagers participating in school sports programs. Our family has made use of them a number of times for minor ailments and always received prompt and professional service without having to go to a physician. An added bonus is that the service is covered by our insurance and only requires an in-service co-pay.
I remember investing in this concept 25 years ago, I forget what it was called. Didn’t catch on back then proving once again that I am ‘ahead of my time’ (which is a lot better than being called a loser!).
Here’s an issue and, weirdly, it’s not unlike the Dollar Store column in today’s RW. If you have to go to the in-store ‘clinic’ the image is you also shop at dollar stores…it’s pretty well a parallel track. Do you get the ‘best’ stuff in a dollar store? No. Do you get the ‘best’ care in a Walmart clinic? Maybe, maybe not. Are both relatively “okay?” Probably.
The word ‘clinic’ extends into the word ‘clinical’ which carries intonations of sterile, stainless steel, unfeeling, colorless, regimented, inflexible and cold experiences. It’s “clinical.” You don’t really expect anyone to actually care and take the time to get to know you and your circumstances. You walk in, you walk out. Frankly it’s likely you have nowhere else to go. That’s the simple reality.
But let’s go to the possibilities…
What if there was a story attached to the “clinic?” A large poster of the nurse, physician’s assistant or doctor on duty that day, a story about why they do what they do, why they actually do care – making them human and connectable right at the entrance? What if a little money was spent making it look inviting, instead of looking like the employee lunch room? Apparently paint comes in colors now. And for goodness sakes, looking at shelves of patient files really does nothing for the soul.
Lots of us aren’t in a position to go to the doctor on the cover of “The 10 Best Physicians in Phoenix” or use the valet parking at the Mayo. But with a little imagination and new thinking we can create easy access to helpful and caring health resources.
I believe there are certain situations that lend themselves to the in-store clinic concept. As mentioned, flu shots, sports physicals for children, maybe children’s vaccines, etc., all dictated by the limitations of the staff in the clinic. What they ‘can’ do versus what requires a referral.
Once the retailers figure all this out and find ways to promote and let the consumer know exactly what they can get and what they can expect, I see these clinics as adding value and some relief to other medical facilities.
Clinics are tactics. Success will be achieved by those who link customer touchpoints for total and meaningful differentiated benefit for the customer.
A big part of the discussion that is not present is ownership and responsibility, in relation to potential for malpractice litigation. Even the “relatively” small one-on-one (doctor vs. patient) lawsuits carry staggering settlements that are crushing the medical industry and its ability to grow.
When we look at the disastrous corporate effects of successful plaintiff class action suits, the decision to go third party and the subsequent roll back in support by Walmart is no surprise.
The health care industry as a viable add-on to the retail industry is an opportunity only for the most daring, with the constant threat of fatal downsides. With there being very few visions of sustainable growth in retail today, the acceptance of this level of risk is arguably madness and cause for investors to reconsider their confidence.
In short, not a good idea.
In-store clinics make sense for their convenience, just as in-hospital pharmacies do. However, there is one BIG difference. Store foot traffic is perceived as healthier. The drive-up window is great for keeping some illness outside the walls, as well as being convenient. I just think a certain part of the population will shy away from places where they see their sick neighbors. It all depends on how the clinics are run.