Despite the at least temporary closings recently of three Medical Marts here, no indication is seen of a change in the trend toward more retail clinics in drug stores and other types of retailers.
The Medical Marts, which were housed in Meijer stores in Aurora, Algonquin and St. Charles, were different than their competitors in that financing came from private sources and staff at the sites included physicians.
Two of the leading providers of retail clinics, Walgreens and CVS stores, differ in that these locations are financed by large corporations and are directed by nurse practitioners.
Not only are their numbers continuing to grow, albeit probably at a slower pace, but additional types of business arrangements are being pursued with hospitals and large employers.
CVS’s MinuteClincs has developed a strategic alliance with Silver Cross Hospital, a health care network with an acute care hospital in Joliet and nine satellite facilities.
A member of the Silver Cross staff will serve as MinuteClinic’s medical director in the county and will work cooperatively with MinuteClinic on patient and community health care education programs.
Silver Cross has also agreed to accept referrals for MinuteClinic patients needing emergency room, urgent care and primary care assistance.
“Silver Cross’s alliance with MinuteClinic helps us achieve our mission of caring for the health care needs of our community residents and to educate people about living healthier,” said Ruth Golby, chief strategic officer at Silver Cross.
MinuteClinic is in ongoing conversations with a number of other Chicagoland health systems, said Rebecca Hafner-Fogarty, medical director—strategic alliances.
“We continue to actively seek additional strategic alliances in our Chicago market.”
MinuteClinics in the Chicago area include facilities in Bridgeview, Brookfield, Chicago (four), Elmhurst, Evanston, Highland Park, Joliet, Lockport, Mokena, New Lenox, Orland Park, Park Forest, Rolling Meadows, Schaumburg, South Elgin, Streamwood, Tinley Park and Worth.
MinuteClinic health care centers are an answer to consumers’ overwhelming demand for more patient-centric health care, said CEO Michael Howe.
“As more patients look to take control of their health care options, we provide a fast, convenient and affordable service for common maladies that is available seven days a week,” he said.
Because examinations typically take 10-15 minutes and no appointment is necessary, MinuteClinic is an ideal solution for professionals and working parents who cannot afford time away from the workplace, according to Howe.
The Walgreen Co., on the other hand, is seeking to increase its market by acquiring worksite health providers and to that end has established Walgreens Health and Wellness Division. It will manage health centers and pharmacies at large-company worksites such as Sprint, ABX Air and Toyota, while continuing the rollout of Take Care Health Clinics located at Walgreens drugstores nationwide.
As part of the new division’s strategy, Walgreens also announced plans to acquire two leading operators of worksite health centers: I-trax, Inc. of Chadds Ford, Pa. (parent company of CHD Meridan Healthcare, LLC.); and Whole Health Management of Cleveland.
Upon completion of those transactions, Walgreens will have more than 500 worksite and retail health centers in 40 states, including its Take Care Health Clinics. Walgreens estimates the current potential market for worksite health centers and pharmacies includes more than 7,600 corporate campuses of 1,000 employees.
“These announcements mark an important strategic initiative for us,” said Walgreens Chairman and CEO Jeffrey A. Rein. “Walgreens Health and Wellness division will marry our store clinics and pharmacies with worksite health centers and pharmacies.
“Our unique offering will allow large employees and health plans to provide care to employees and plan members at their worksite, and to dependents and retirees through our Take Care Health Clinics at local Walgreens drugstores.
Hal F. Rosenbluth, senior strategy consultant for health care at Walgreens and co-founder and chairman of Take Care Health Systems, will be president of the new division. In 2003, he co-founded Take Care Health Systems, which opened it first convenient care clinic in November 2005. The company, based in Conshohocken, Pa., was acquired by Walgreens in 2007.
Take Care Health Clinics are located at select Walgreens drugstores in the suburbs, including Arlington Heights, Aurora, Bolingbrook, Carol Stream, Downers Grove, Elk Grove Village, Glen Ellyn, Hanover Park, Joliet, Lake Zurich, Libertyville, Lockport, Mokena, Montgomery, Morton Grove, Mount Prospect, Naperville, Northfield, Park Ridge, Plainfield, River Forest, Romeoville, St. Charles, Villa Park and Yorkville.
Take Care Nurse Practitioners (TCNP), which are licensed to write prescriptions, treat a variety of common conditions, including colds, sinus infections, bronchitis and skin conditions, and provide basic diagnostic testing, vaccinations and physicals. The company said TCNPs work in collaboration with local physicians or hospital systems.
The concept of retail clinics is a “slam dunk”, according to Tom Charland, president and CEO of Merchant Medicine in Shoreview, Minn., because it appeals to dual income couples with kids.
“They are so busy,” Charland. “They have no problem with a nurse practitioner. They are willing to stretch outside the bounds of traditional medicine.”
But he added a cautionary note.
“One can only imagine what’s going through the minds of retailers across the country who are looking to bring in their own clinic operators,” Charland said. “Closings like those of Medical Mart and CheckUps in some Wal-Mart stores in southern states have taken place with national retailers like Meijer, showing that even the most sophisticated retailers are being surprised by the lack of staying power of some clinic operators.”
Asked about Wal-Mart stores in Illinois, Mia Masten, director, corporate affairs-Midwest for the company, said “Wal-Mart doesn’t operate any in-store clinics in Illinois at this time.”
Looking at the overall market in the coming months Charland said “Unfortunately, we don’t believe that this is the end of some shakeout in the industry. 2008 will likely see a few more doors closing before we settle into more stability among major operators.”
Dan McLeister, Contributing Writer