NEWS - August 2008

RETAIL CLINICS

In July, expansion of the retail clinic market appeared to be back on track at a slower rate than for the first half of the year. Several retail clinic locations closed in prior months. Early August brought some interesting developments that are described in the following news abstracts.

Blue Cross Blue Shield Co-Pay Coverage

As a cost-saving measure, Blue Cross & Blue Shield of Minnesota (BCBSM) is encouraging health plan members to use retail clinics instead of physician's offices or other venues for treatment of minor ailments and routine vaccinations. As incentive, BCBSM co-payments are being waived for retail health clinic services.

In a separate development, CVS Caremark has contracted with Harvard Pilgrim Health Care and Tufts Health Plan to cover member visits to CVS retail clinics in Massachusetts. Co-payments of $10 - $25 will be charged instead of typical costs ($59 - $69).  The Tufts Health Plan may expand coverage to include visits to Walgreen's Take Care clinics. In January 2008, the Massachusetts Public Health Council approved CVS's plan with the expectation that retail clinics would expand access to care. An ongoing issue is whether patients will substitute retail clinic services for visits to their regular physicians.  A spokesperson for Harvard Pilgrim suggests that health plans and patients will save costs by using retail clinics.

For more information, visit: Chicago Tribune or Kaiser Family Foundation.

Technologies Supplement Retail Clinic Operations & Services

In a new business model, My Healthy Access (Houston TX) is partnering with NuPhysicia to combine retail clinic services with telemedicine technology.  Telemedicine consults will be available in select Wal-Mart retail clinics in the Houston area, enabling nurse practitioners to conduct patient examinations under supervision by a physician at a different location.

In a separate development, RediClinic has chosen athenahealth's internet-based business services for electronic medical record and revenue cycle management.  The technology solutions will help optimize workflow for patients and staff through a centralized network that supports RediClinic's expanding infrastructure.

For more information, visit: CBS News or RediClinic.

Slower Growth Of Retail Clinics…

The latest numbers available from Merchant Medicine indicate that the total number of retail clinics fell for the first time during June 2008, from 981 to 969. Growth seemed to improve in July, although the overall pace of development is likely to remain slower than during the prior twelve months. A retail clinic can take two or more years to make a profit, so large operators benefit from having established locations to offset expansion costs. The economic slow-down may have been a factor for clinic closures.

For past news, visit the Archive.