Careers in Retail Pharmacy

greens, for instance, has partnered with three operators in four major markets—Las Vegas, Kansas City, Atlanta and Chicago. Similarly, Wal-Mart has partnered with at least three different operators in a number of its markets.

Currently there are about 165 retail clinics in operation, a number that’s expected to more than double by the end of the year. By Drug Store News’ estimates, as many as 2,000 retail clinics could be operating in retail pharmacies across the country.

Every national drug chain, many of the leading supermarket and mass pharmacy chains, as well as several of the top regional drug store chains, and even a handful of crafty independents have all announced partnerships with any one of 18 different clinic operators Drug Store News has identified to date.

Not only has the clinic concept caught on like wildfire among entrepreneurial health care professionals, the concept has attracted interest from insurers as a cheaper alternative to a doctor’s visit. According to a report last month from the California Health Commission, as many as 40 percent of clinics accept most major health insurance plans.

Conversely, there still are some clinic operators who are not looking to sign managed care contracts with anybody. “We do not take insurance at all,” commented Dave Mandelkern, president and chief executive officer of QuickHealth. “We want to be able to offer the lowest possible price to all of our customers.”

Prices at QuickHealth range from $35 for a basic 15-minute office visit to $199 for a comprehensive battery of exams including a heart health package and an STD package. Not taking insurance eliminates at least one very time-consuming drain on resources: ad-

Fall 2006

judicating claims.

While most of the clinics are staffed by licensed nurse practitioners and physician assistants, some clinics are employing actual physicians. The menu of services is significantly broadened if not more expensive, reported Barrett Cook, director of public relations with Solantic, one operator of physician-staffed clinics.

Solantic has signed a lease agreement for three Florida Wal-Mart supercenters, an addition to the 10 freestanding clinics it operates with no direct pharmacy af-

The end of the
decade should
see as many
as 10,000
retail clinics
operating
across
America.

filiation. Costs of services start at $55 for a basic visit and climb as high as $150. According to Cook, however, only 20 percent of the clinic’s patients are cash-paying customers. The rest use insurance.

Like any start-up business model, there have been growing pains. “We learned an awful lot in our initial test-market in Portland, [Ore.],” commented Take Care Health Systems president Peter Miller. Take Care has since shuttered three of those pilot clinics.

“One of the most important things we learned—like any retail business—is that a lot of it comes down to location, location, location,” Miller said. “If you think about what our industry is offering, it’s high-quality, affordable, highly accessible health care. That last part is what gets somebody through the

door. You have to be convenient.”

Other variables that could potentially impact the success of a retail clinic include demographics. Many clinic operators target younger consumers, for example, single adults who may be affluent enough to afford a drop-in clinic visit, or either don’t have health coverage through their employers or opt out of it.

Uninsured minority patients are prime targets, as well. “It’s a common myth that the uninsured don’t have money to pay for health care,” commented Mandelkern. “The uninsured in this country … spend $32 billion cash out-of-pocket on health care every year. That’s a lot of money.”

It’s a misconception that uninsured or underinsured equals poor, Mandelkern explained. “Our uninsured customers are working families. They typically make [anywhere from] two-thirds of the median income to the median income.” About 70 percent of QuickHealth’s customers, he said, have no insurance. “Those with health insurance are coming to us primarily for convenience. … Even people with insurance have big access problems trying to see their primary care provider”

Young families are also a prime demographic for clinic operators—many of whom advertise no appointments necessary and short or no waiting times—a potentially significant value-added for a mom trying to schedule a doctor’s appointment for her sick child.

“This is a concept that really does have a broad appeal,” Miller said. “It’s just as appealing to a 21- year-old without health insurance as it is to a 45-year-old woman with three kids with insurance,” he said, identifying two of the most interested consumer groups to the clinic concept by way of Take Care market research.

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