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Blog entry

Retail Clinics: The Next Generation

April 9, 2013

Six years ago, I wrote about the emergence of retail clinics as “…The Next New Thing” in the delivery of health care.  Even then, for almost 10 years these enterprises had been offering basic medical care in drug stores in nearly half the states in the country at about 12 percent of the cost of an emergency room visit and a third of the cost of a visit to an urgent care center.At the time, the California Health Care Foundation opined that, “If successful, this could change the way many people receive routine, non-urgent medical care, with significant implications for insurers and health care providers.” 

Prophetic indeed, as the convenience and ease of access to retail clinics have caused them to flourish and expand to almost every state in the nation.

But, “It’s not just sore throats and flu shots anymore,” as reported in Kaiser Health News (KHN) last week.  On April 4, “Walgreens…became the first retail store chain to expand its health care services to include diagnosing and treating patients for chronic conditions such as asthma, diabetes and high cholesterol,” KHN noted.

Convenience, low cost and the severe physician shortage we face improve the odds for success of Walgreens’ plan, and I’m certain other retail clinic operators will follow suit.  I also predict that efforts by organized medicine to block their expansion, while formidable, will serve more to increase awareness of the need for access to this vital, low-cost consumer service.  Rather, the real challenge lies with the need to integrate these enterprises into organized systems of medical care. 

The new health care financing and delivery system paradigm calls for managing the health needs of consumers by coordinating their care from the helm of medical homes.  The proliferation and use of retail clinics for chronic disease care management is antithetical or counter-purposeful to that strategy, unless these clinics are embraced (i.e., annexed) by the integrated delivery systems emerging in response to the new paradigm.

Your thoughts?

NOTE: Healthcare WebSummit will present the webinar, “Retail Clinics: Healthcare Factor or Fad?” April 25. Learn more.

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Retail Clinics

Submitted by Matt Gerlach (not verified) on April 9, 2013 - 8:51am.
Jim, I agree that this really is the new normal. Individual doctor-patient relationships seem to be dwindling as medical groups have redefined those relationships by rotating physicians through office-based practices (in the six years I was with the old HPG, I saw my "assigned" primary physician 3 times out of maybe 15 visits or so; in every other case, if I needed to see someone sooner, I saw the locums physician, a different one each time) and using hospitalists in the hospital. If those individual doctor-patient relationships disappear, eventually the mentality of "any PCP will do" takes over and patients will seek "convenient, easy and cost-effective" over "established, trusted and historical". I think that is where we are now. While I know that the economics of the system (supply and demand for PCPs, low cost, etc.) are a big part of this, I also think the dwindling old-style doctor-patient relationships also establish a lower "loyalty" level that makes this model harder for organized medicine to block. Matt
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Retail Clinics and chronic care

Submitted by Diana Hilberman (not verified) on April 10, 2013 - 11:45am.
Hi JIm, It looks like this may be the wave of the future. Last month a team of my students participated in a health management case competition at U Alabama, Birmingham. The cases are real situations. In the case the students analyzed, a health system in the mid-Tennessee area was planning to build about 15 urgent care centers aligned with their hospitals there as well as current urgent care centers and pharmacy chains. Their strategy involved the ability to bring the centers into alignment with their vertical care chain. California may just be starting this, but clearly other parts of the country are moving to ensuring that all parts of the primary care chain are also aligned with higher severity care settings with appropriate referral mechanisms as well. Diana
  • reply

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Comments

Retail Clinics

Submitted by Matt Gerlach (not verified) on April 9, 2013 - 8:51am.
Jim, I agree that this really is the new normal. Individual doctor-patient relationships seem to be dwindling as medical groups have redefined those relationships by rotating physicians through office-based practices (in the six years I was with the old HPG, I saw my "assigned" primary physician 3 times out of maybe 15 visits or so; in every other case, if I needed to see someone sooner, I saw the locums physician, a different one each time) and using hospitalists in the hospital. If those individual doctor-patient relationships disappear, eventually the mentality of "any PCP will do" takes over and patients will seek "convenient, easy and cost-effective" over "established, trusted and historical". I think that is where we are now. While I know that the economics of the system (supply and demand for PCPs, low cost, etc.) are a big part of this, I also think the dwindling old-style doctor-patient relationships also establish a lower "loyalty" level that makes this model harder for organized medicine to block. Matt
  • reply

Retail Clinics and chronic care

Submitted by Diana Hilberman (not verified) on April 10, 2013 - 11:45am.
Hi JIm, It looks like this may be the wave of the future. Last month a team of my students participated in a health management case competition at U Alabama, Birmingham. The cases are real situations. In the case the students analyzed, a health system in the mid-Tennessee area was planning to build about 15 urgent care centers aligned with their hospitals there as well as current urgent care centers and pharmacy chains. Their strategy involved the ability to bring the centers into alignment with their vertical care chain. California may just be starting this, but clearly other parts of the country are moving to ensuring that all parts of the primary care chain are also aligned with higher severity care settings with appropriate referral mechanisms as well. Diana
  • reply

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