Retail health clinics’ growth has slowed

The Retail Health Clinics market has been widely scrutinized since the first clinic opened in 2000.  The clinics are currently operated by a diverse collection of businesses.

Pharmacy chains such as CVS, Walgreens, and Kroger Company, are owners-operators. They own the majority of the leading clinic operators. The large pharmacy chains have the resources and stores with strong brand recognition that allowed the companies to suffer through the losses of new clinics during the estimated 12-24 month period it usually takes to reach profitability. During this time, clinics often increase usage of the pharmacies in which they operate.

Walmart has experimented with several retail clinic models over the past few years. They appear to have decided on a model that works, and have plans to increase the number of clinics at their stores. Walmart holds no ownership stakes with its partner-operators but collects rent and a brand fee. “The Clinic at Walmart” is located in Walmart stores near the pharmacy and its operators are usually local hospitals and health systems.

RediClinic® (with locations in a number of H-E-B stores in Texas) is an example of an independent clinic operator. These clinic operators are basically alone when it comes to profitability. Usually, the host retailer is not a stakeholder in the clinic and may not do much to help with the clinic’s success.

Other market players include Bellin Health and Geisinger’s Careworks Convenient Healthcare. Bellin Health has a business that sells turnkey packages for opening retail clinics to other health systems. Bellin oversees the building and design, supplies the furniture and signs, and provides the marketing campaign. It also pays the build-out costs, typically about $150,000. The health care systems operate the clinic but pay a monthly fee to Bellin. Bellin has approximately 35 FastCare clinics open or under construction, and expects to have 50 to 60 by the end of this year. Bellin Health operates only a small number of the clinics.

In addition to successfully running its own clinics, Careworks Convenient Healthcare is also working with other hospitals and health systems across the country with their convenient care strategy. Careworks’ experience, capabilities and retailer relationships enable it to help customers capitalize on their opportunities and to optimize their clinic investment.  From consulting to development and management solutions, Careworks can help implement these clinics properly into a local system of care.