Dive Brief:
- CVS/Caremark clearly dominates the market in retail clinics, with more than twice the number of its nearest national competitor, Walgreens, according to a new report by Merchant Medicine. Currently, CVS has 836 MinuteClinics in 28 states, compared to Walgreens' 388 clinics in 19 states. Kroger comes in third with 119, with Wal-Mart and Target lagging behind with less than 100 clinics each.
- Nationwide, there are 1,649 retail clinics in 43 states; 80 retail clinic operators, and 38 retailers hosting clinics. Of the total, only 175 retail clinics are hospital-run.
- CVS is opening clinics faster than its competitors, but there is plenty of room in the market for all comers, the report says. Even with its market dominance, CVS only has clinics in 10% of its stores, for example, while Walgreens has clinics in 4.7% of its stores nationwide.
Dive Insight:
Millions of Americans newly insured under the Affordable Care Act are looking for inexpensive care, and retail clinics may fit the bill especially for people buying high deductible exchange plans. They are relatively less expensive than urgent care centers, and both are far cheaper than a trip to the emergency room.
These clinics, offering such services as flu shots, screenings and physicals, primarily are run by retailers with pharmacies, such as WalMart and Target, along with some grocers like Kroger. Companies running retail clinics are partnering with health systems and hospitals, as well as with insurers trying to get primary care to their members to avoid the ER. Some insurers are strategically placing clinics in areas with high ER costs and inappropriate utilization.
Given the shortage of primary care physicians in the U.S., a problem only expected to worsen, retail and urgent care clinics also are positioning themselves as alternatives, or at least adjuncts, to PCPs. Some payers pay for clinic coverage as "medical homes" in areas of doctor shortages. Meanwhile, some physician groups argue that although people might find retail clinics to be convenient, they won't receive meaningful care there.
