Study: Retail-based clinics a viable business for Walmart, other retailers, if managed correctly
NEW YORK — Retail-based health clinics represent a viable business for retailers who locate and correctly manage them, according to Kalorama Information.
The healthcare market research publisher, which is a division of MarketResearch.com, made its assessment based on the recent news that Walmart may dramatically expand its retail clinics offering.
Walmart has denied that it is building a national, integrated, low-cost primary care healthcare platform; however, the retailer reportedly has not disputed that it is looking for new partners for its 140 clinics nationwide.
According to published reports, Walmart is looking to partner with outside healthcare companies to treat and manage a range of medical conditions — including HIV, diabetes, arthritis and clinical depression.
“While medical clinics locations are still relatively few in the U.S., the concept survived the recession and legislative challenges,” stated Bruce Carlson, publisher of Kalorama Information. “We’ve always felt our forecasts could be dramatically changed if a major retailer jumped in, and recent news suggests that may happen.”
Kalorama has completed three studies on the budding industry over the past five years and estimates in-store medical clinic sales at $733.4 million.
Several years ago, Walmart had announced as many as 400 medical clinics in its stores, but then shuttered some locations. Today, the retailer’s website lists approximately 140 Clinic at Walmart locations, which is just a fraction of all U.S. stores. However, this could change soon, as Walmart sent out a request-for-information document to strategic partners.
According to Kalorama, the retailer could benefit from tying new clinics into the store rather than keeping them as independent entities outside the main traffic zone.
“They can’t be seen the same as a travel agency, optometrist or Subway sandwich shop,” Carlson said. "Our research has found that retail clinics work best when connected to pharmacies, when supported by store management and when their success or failure is measured on indirect as well as direct revenue.”
Kalorama noted the success of retail clinics in pharmacies versus other locations. CVS’ MinuteClinic grew from 541 stores in 2009 to more than 560 in 2011. Meanwhile, Walgreens also embraced the concept and its Take Care Clinics have gone from 250 to approximately 330 in two years’ time.
Kalorama’s study indicated that such mass outlets as Walmart or Costco could gain at least $800 per day from indirect revenues — extra purchases made by customers who came to the store to receive primary care services.
Pawlenty and ‘who’s who’ of retail pharmacy headline 13th annual Issues Summit
NEW YORK — CVS/pharmacy. Rite Aid. Walgreens. Sam’s Club. Ahold. H-E-B. The Katz Group. Giant Eagle. Good Neighbor. Health Mart. The list of participating companies in the 13th Annual Drug Store News Group Industry Issues conference — which will be held Tuesday, Nov. 29, here at the highly prestigious New York Athletic Club — reads like a “who’s who” of pharmacy retailing. And so, too, does the list of guest moderators who will lead the programs for the multiple panel discussions that will occur that day:
Issues Summit: Championing both points of view, respectively, will be retailer and vendor veterans Dave Van Howe (formerly of Walgreens, CVS and Arbor Drug), Market Performance Group VP and general manager; and Dan Mack (formerly of Dentek, GoJo and GlaxoSmithKline), EVP strategic business development at Swanson Group/Elevation Forum. They will focus on two key topics — health and wellness, and product innovation.
Health, Wellness & Technology Summit: Moderated by longtime pharmacy vet Bob Dufour (formerly Walmart director of pharmacy services and government relations), this special closed-door session (sponsors only) will examine new and emerging technology solutions will drive health, wellness and patient care.
Specialty Pharmacy Leadership Summit: Moderated by another longtime pharmacy vet Dave Fong (formerly of Safeway and Longs Drug), this panel, which includes representatives from leading specialty pharmacy providers Walgreens, Diplomat, BioPlus, SXC and others, will examine the high-growth, high-touch, high-cost specialty pharmacy and biotech market, fueled by its ever-expanding product pipeline and complicated by ever-changing protocols and shifting economics.
Diabetes Leadership Forum: Moderated by Dave Wendland, VP of Hamacher Resource Group, this panel will examine best practices among suppliers and retailers in trying to improve health outcomes and maximize opportunities to engage one of the most critical pharmacy customers.
Special guest, former two-term Minnesota governor and GOP hopeful Tim Pawlenty will deliver the lunchtime keynote address, handicapping the field of potential Republican nominees for 2012, and sharing his views on the current political climate, including what America needs to do about health reform, taxes, education, the economy and the deficit.
To register for the 2012 DSN Industry Issues Summit, visit DSNIndustryIssues.com. Sponsors include: Armada Health Care, Catalina Marketing, Emdeon, Endo Pharmaceuticals, GlaxoSmithKline Consumer Healthcare, Hylands, Kay Naturals, Koldkeepers, Kony, Moonshado, Novartis, Novo Nordisk, Numera Social, Pacific World, Pfizer Consumer Healthcare, Pharmavite, SoloHealth, Surveyor Health, Tabs Group, Takeda and Ultimed.
Appeals court rejects Teva request to stop Watson from selling generic Seasonique
PARSIPPANY, N.J. — An appeals court has thrown out an attempt by Teva Pharmaceutical Industries to stop Watson Pharmaceuticals from selling a generic contraceptive, Watson said.
The U.S. Court of Appeals for the Federal Circuit affirmed a lower court’s June 16 decision to deny Duramed Pharmaceuticals’ request for an injunction that would stop Watson from selling a generic version of Seasonique (levonorgestrel and ethinyl estradiol [0.15 mg/0.03 mg] and ethinyl estradiol [0.01 mg]). Duramed originally was a subsidiary of Barr Pharmaceuticals, which Teva acquired in 2008.
Watson launched its version of Seasonique, sold under the brand name Amethia, in July.