The healthcare retail clinic market has grown approximately 15 percent in the past two years, according to the Deloitte Center for Health Solutions.
That growth will likely slow to as little as 10 percent from 2010 through 2012, Deloitte officials said, before accelerating above 30 percent from 2013-2014.
“The growth and evolution of retail clinics reflect opportunities for disruptive innovation and an improved value proposition of price, quality and service for the U.S. healthcare system,” said Paul Keckley, executive director of the Deloitte Center for Health Solutions. “While the current economic downturn has incited a period of contraction, the retail clinic industry will emerge with a more refined business model to drive a second, albeit slower, wave of growth in the next three years.”
The report, “Retail Clinics: Update and Implications,” suggests that consumer adoption of retail medicine is strong and growing and that the industry’s potential to expand its revenue opportunities will support its long-term sustainability.
According to deloitte, four factors will contribute to the market’s growth:
- Increased use and satisfaction by consumers;
- Broader use and acceptance by commercial health plans and large employers;
- A rise in the number of services provided; and
- A higher demand for preventive and primary healthcare services as a result of health reform.
According to the report, the retail clinic industry will face a few challenges, including labor shortages, compensation inflation, price pressures from new entrants and regulatory pressures from state governments.
“As a new entrant to the healthcare industry, retail clinics represent a threat to many traditional healthcare stakeholders,” said Keckley. “However, to consumers, health plans and employers, retail clinics offer an important healthcare alternative with a strong value proposition. Therefore, we expect this new sector to mature while growing its scope of services, locations and impact on population-based health status.”
Some regulators are fearful that retail clinics cold compromise safe and effective care, while some physicians have campaigned against them and advised patients to seek care elsewhere.
According to the study:
- About one-third of consumers, especially younger and middle-aged working adults, indicate they would use a retail clinic.
- Another 30 percent of respondents are likely to use a retail clinic if it would cost them 50 percent less than seeing their physician.
- Most retail clinics operate in retail pharmacy settings (82 percent) or as a department or wholly-owned subsidiary of the host organization, such as a grocery store (12 percent) or big-box discount store (6 percent).
- The market potential for retail clinics remains strongest in retail pharmacies (there are currently 801 clinics in 10,000 retail pharmacies).
- Core services at retail clinics typically include preventative health screenings, prescriptions and over-the-counter therapeutics and uncomplicated primary care. The retail clinic business model is capable of supporting additional revenue streams unrelated to its core operations.