Retail clinics show signs of slowing
The retail clinic trend which juxtaposes mid-level medical clinics with “one-stop-shop” locations such as Wal-Marts, CVS Pharmacies, and Shopko stores is showing signs of weakness. Evidenced by slowing expansion of the stalwarts of the retail clinic business (CVS, Wal-Mart) and clinic closings in multiple states, retail clinics might be the latest to fall victim to a slowing economy in which the discretionary dollar is receiving more and more scrutiny before being spent on healthcare.
This article from the Wall Street Journal Online explains.
“We have seen fallout in this industry, on a smaller scale, that is not unlike the dot-com bubble,” says Tom Charland, the owner of industry consultant Merchant Medicine LLC and a former vice president for strategy at MinuteClinic. “The big mistake was for people to think they could reach break-even in six months,” he says. “People are learning this is an 18-to-24-month process to get to break-even.”
Mr. Charland says the venture capitalists and private-equity firms that backed many of the retail clinic operators failed to appreciate how complicated and expensive the clinics are to operate. Research shows that patients are enthusiastic about the clinics’ convenience and quality of care, but acceptance has been slow.
_________________
Click here or call (888) 827-5613 for information on a free program dedicated to helping private practices throughout the U.S. strategically adjust to the slowing economy. Free program runs through March 31st, 2009 and is open to practice owners and administrators of any healthcare discipline.
Tannus Quatre PT, MBA is a practice consultant and principal with Vantage Clinical Solutions, Inc., a national healthcare consulting and management firm located on the west coast. Tannus can be reached through the Vantage Clinical Solutions website by clicking here.
Related stories:
- Medicare, competition wreak havoc on physical therapy clinics
- More talk about Wal-Mart clinics
- Leading economic indicators: Jobless claims, building permits, gum surgeries?
- Rough times for some private PT practice owners
- Wal-Mart healthcare top 20
