Retail clinics don’t make money

July 24, 2008

Uh, there are primary care physicians all over the country who have come to the same conclusion.

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{ 6 comments }

1 Anonymous July 24, 2008 at 11:12 pm

I actually thought these things might prosper. I was wrong.

If corporate America, with its ultimate information technology, political pull, and management expertise can’t make these work, how is some solo Johnny GP going to do it?

2 Supremacy Claus July 24, 2008 at 11:38 pm

Retail medicine of any kind, including private practice, is nearly impossible, thanks to the lawyer.

3 Anonymous July 25, 2008 at 1:39 pm

Management expertise?

The industry keeps talking about sinking $300,000 – $600,000 per clinic before making a profit.

http://tinyurl.com/55yda8

(links to Fierce Healthcare)

That doesn’t look like a good business plan to me. For that money I can build and staff a real physician office with all the bells and whistles. Including real physicians instead of mid-levels. Actually, it cost me less than that to start my own office.

4 Manalive July 25, 2008 at 4:50 pm

Even cherry-picking primary care’s quick-and-easy cases isn’t profitable.

5 Anonymous July 26, 2008 at 9:35 am

To me, there is not much difference between urgicare and retail clinics. Both are business models designed to maximize profitability. Both deal, in reality, with a similar spectrum of chief complaints. And, in many urgicares, it is hard to locate an actual physician; a lot of staffing is either NP’s or PA’s, frequently without onsite supervision by physicians.

So what is the difference, other than aesthetics, ie the distasteful notion of receiving health care while shopping at Wal-mart?

The old adage “chickens coming home to roost” comes to mind; urgicares undermined, rather than complemented, the role of primary care by robbing “easy” cases and exerting pressure on primary care doctors to keep up and expand access, ie hours, further adding to strain.

Well guess what? Retail clinics are just furthering that philosophy, replacing primary care, and now urgicare in the process.

6 Throckmorton July 26, 2008 at 1:03 pm

In the terms of clinics operated by entities that also are pharmacies, the business model is actually related to the sales of the pharmaceuticals not the actual clinic itself. That is to say if you are seen at CVS you will most likely buy your medications at CVS.

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