Report: Prescription Renewals Driving Visits to Retail Clinics

Report: Prescription Renewals Driving Visits to Retail Clinics

RetailClinic

According to a new report, prescription renewals are a key reason for visits to the small clinics located within drugstores or grocery stores. Nearly a third of visitors to retail health clinics have used the clinics for a renewal of a prescription. Total 2014 U.S. retail clinic sales are estimated at more than $1 billion, and sales are expected to continue expanding through 2019.

Retail clinics are small healthcare providers that are entirely located inside stores, malls and other retail locations, making them convenient for shoppers.  Some are in grocery stores or box stores but most clinics are located in drugstores. Retail clinics are usually staffed by nurses or nurse practitioners, and feature a high transparency of pricing, with rates often prominently displayed. While state dispensing laws generally bar direct referrals by a physician or prescribing provider to any specific pharmacy, retail clinic visitors can always use whatever pharmacy they wish. Low cost services are enabled by high throughput and cost containment, with broad purchasing power across many locations.

According to Bruce Carlson, Publisher of Kalorama Information, “There’s some concern among physicians about competition from retail clinics, and given that a renewal of a prescription is a fairly basic service, this result is something to watch for the next few years to see if these clinics are having an impact on neighboring doctor’s offices.

Carlson said that another survey question indicated only a small group thought the retail clinic would replace their regular physician. “Retail clinics are occupying only a small space within the store and do not use most of the sophisticated medical equipment found in hospitals or specialty centers such as advanced imaging devices. However, retail clinics are becoming relatively large users of point-of-care (POC) tests, clinical chemistry and immunoassay laboratory tests and vaccines. The report details those sales as well.”

Today, operators of all types of retail healthcare locations like storefront urgent care centers and clinics face challenges. While they’re seeing continued growth and public (patient) acceptance, there are a number of operational challenges any owner must address to ensure continued success.  According to Steve Keltz, Chief Creative Officer, ServiceChannel, three major challenges most face are:

1. Maintaining Brand Uptime. 82% of customers won’t enter a retail space in disrepair (according to Interbrand Design Forum).  If your retail healthcare facility is not well-maintained, patients will not come in or come back.  In addition, business critical issues like clinical equipment servicing and temperature problems cannot be ignored.  It’s imperative they’re addressed immediately and by properly certified contractors.

2. Providing Quality Care Consistently — Retail healthcare location staff must stay focused on providing quality care to patients. Time spent troubleshooting repair & maintenance (R&M) issues take away from that focus.

3. Gaining Visibility into Costs & Performance — Repair & maintenance is typically managed in silos, with each location responsible for its own activities.  Beyond the construction phase, management has no real visibility into R&M costs and contractor performance across all locations and trades. Only by having insight into these costs at a granular level can proper decisions be made, operating expenses controlled and quality patient care ensured.

Press Release Follows

 

Report: Prescription Renewals Driving Visits to Retail Clinic

NEW YORK, May 8, 2015 /PRNewswire/ — Prescription renewals are a key reason for visits to the small clinics located within drugstores or grocery stores, according to Kalorama Information.  Nearly a third of visitors to retail health clinics have used the clinics for a renewal of a prescription, according to the healthcare market research firm.   The finding was made in Kalorama Information’s latest look at the retail clinic market, Retail Clinics 2015.

Retail Clinics 2015 can be found at KI: http://www.kaloramainformation.com/redirect.asp?progid=87438&productid=8792050.

Retail clinics are small healthcare providers that are entirely located inside stores, malls and other retail locations, making them convenient for shoppers.  Some are in grocery stores or box stores but most clinics are located in drugstores.   Clinics are usually staffed by nurses or nurse practitioners and feature a high transparency of pricing, with rates often prominently displayed. Low cost services are enabled by high throughput and cost containment, with broad purchasing power across many locations.  Kalorama says that for 2014, total U.S. retail clinic sales are estimated at more than $1 billion and sales are expected to continue expanding through 2019, according to Kalorama Information. Retail clinics have grown in response to the U.S. health care system’s shortcomings, filling gaps in service and attracting customers who want a convenient solution.

Kalorama conducted a web-panel survey of 2,000 adults from December 2014 to January of 2015 to ask about their use of retail clinics.  Respondents were selected to match US population, regional and income criteria. Of those who indicated they had visited a retail clinic, 74% of survey respondents said they went for a vaccination, 55% for cold or flu symptoms and 32%  said they visited for a prescription renewal.  It was the third-largest category of reasons for visits cited.

“The results suggest that customers are taking advantage of the convenience of this simple healthcare action while at the store where a prescription can be fulfilled,” said Bruce Carlson, Publisher of Kalorama Information. “It confirms the CVS and Walgreens strategy of having clinics within the pharmacy space to offer patients A to Z healthcare.”

State dispensing laws generally bar direct referrals by a physician or prescribing provider to any specific pharmacy, and retail clinic visitors can always use whatever pharmacy they wish.  From a business standpoint Kalorama notes that so long as customers are in the store, it is logical they will visit that pharmacy to finish the prescription process.   As prescription renewal can be a basic reason for a doctor’s office visit, Kalorama suggests that this trend might worry a few physician providers.

“There’s some concern among physicians about competition from retail clinics, and given that a renewal of a prescription is a fairly basic service, this result is something to watch for the next few years to see if these clinics are having an impact on neighboring doctor’s offices,” said Carlson.

Carlson said that another survey question indicated only a small group thought the retail clinic would replace their regular physician.  Retail clinics are occupying only a small space within the store and do not use most of the sophisticated medical equipment found in hospitals or specialty centers such as advanced imaging devices. However, retail clinics are becoming relatively large users of point-of-care (POC) tests, clinical chemistry and immunoassay laboratory tests and vaccines. The report details those sales as well.

While drug stores will continue to represent the majority of all retail clinic locations by 2019, a rising number of clinics will be located at these other facilities as the retail health care concept is embraced by a growing number of stores. Retail Clinics 2015 examines:

  • The U.S. Market for Retail Clinic Services, 2009–2019
  • Growth of U.S. Retail Clinic Services, 2009–2019
  • Leading Service Providers’ Revenues and Market Share, U.S. Market for Convenience Clinics, 2014
  • Market Shares of Leading Retail Clinic Service Providers, 2014

Information for this report was gathered from a wide variety of published sources including company reports, catalogs, materials and public filings; government documents; trade journals; newspapers and business press; analysts’ reports and other sources. Interviews with company representatives were conducted to capture the perspectives from industry participants’ point of view and assess trends, and form the basis of the forecasting and competitive analysis. Dollar figures represent the U.S. market and are expressed in current dollars. Sales estimates are provided for the historic 2009 to 2014 period and forecasts are provided through 2019. The size of each market segment refers to manufacturers’ revenues in U.S. dollars.

Retail Clinics 2015: Growth of Stores, Consumer Opinion, Leading Competitors, Sales of Products to Clinics (Diagnostic Tests, Pharmaceuticals, Vaccines), Clinic Sales Forecasts and Trends can be found at KI: http://www.kaloramainformation.com/redirect.asp?progid=87438&productid=8792050.

About Kalorama InformationKalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. Reports can be purchased through Kalorama’s website and are also available on www.marketresearch.com and www.profound.com.

We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog at www.kaloramainformation.com.

Contact:
Bruce Carlson
(212) 807-2622
bcarlson@kaloramainformation.comwww.KaloramaInformation.com

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SOURCE Kalorama Information

 

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