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Study: Retail health clinics, urgent care centers a $10B market and growing

BY Antoinette Alexander

TAMPA, Fla. — The retail health clinic and urgent care center market currently is worth about $10 billion and is poised for strong growth in the coming years as the shortage of primary care physicians and crowded emergency rooms increasingly move patients to retail sites, according to new data by Marketdata Enterprises, an independent market research publisher.

Marketdata Enterprises has released the new 132-page report entitled, “The Market For Retail Health Clinics & Urgent Care Centers.” The study explores the nature of the business; industry size and growth; demand factors; patient demographics; effects of the recession and the Patient Protection and Affordable Care Act; operating ratios; major competitors and more.

“The primary care MD shortage is getting worse and consumers with less insurance are increasingly using retail health clinics for kids’ physicals, flu shots, ear infections, sore throats and minor ailments. Soon, they’ll be using these clinics for diabetes monitoring, weight-loss programs and more,” research director John LaRosa said.

Major findings included:

  • Marketdata estimates that retail clinics, now numbering about 1,400, will nearly double to 2,700 sites by 2016;

  • Average revenues per clinic are $512,000. Urgent care centers account for $9.23 billion and retail centers for $786 million — for a total of $10.08 billion;

  • 
Marketdata estimates that 9,000 urgent care clinics’ revenues will hit $9.23 billion this year, and rise to $14.16 billion by 2016; and

  • The number of yearly patient visits to retail clinics exploded, from 1.48 million in 2007 to 5.97 million in 2009, and an estimated 10.5 million by year-end 2012.

The investment needed to open a retail clinic in a drug store chain, supermarket or big box retailer is about $250,000, and to open a stand-alone urgent care center with on-site X-ray machines and other equipment is $750,000 to $1 million, according to the research.
            

New retail clinics less than two years old may have 10 to 15 patients/day, at an average fee of $60 to $75, while “established” clinics will see 25 to 30 patients/day. Visits spike during the fall flu season, the study stated.
            

Half of urgent care centers are owned by physician groups and another 28% by hospitals, which are setting up their own centers separate from emergency rooms.

More consumers are using retail clinics and urgent care centers as their first point of entry to the healthcare system, and 32 million more will enter in 2014 when the Patient Protection and Affordable Care Act is in effect. Primary care physicians and emergency rooms won’t be able to handle the increased volume, the study stated.
        

Private equity firms are keen to invest in this niche healthcare sector, and several companies such as Doctor’s Express are already franchising.
            

Adding weight-loss programs to their repertoire could push retail clinics from break-even to profitability. It’s a natural fit, since dieters want drop-in anytime convenience, low price, and personal attention. Partnerships are certain to multiply over the next few years.

“Retail health clinics will provide a boon for nurse practitioners and physician’s assistants, who are well qualified to treat minor ailments. Plus, it’s a great way to learn the business aspects of medicine. Healthcare is becoming more decentralized, being delivered where consumers shop and work — not just in the doctor’s office and not just 9-5, M-F, and at less cost,” LaRosa said.


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M.JOSEPH says:
Sep-27-2013 08:30 am

It’s a true fact that the primary care MD shortage is getting worse and consumers with less insurance are increasingly using retail health clinics for kids’ physicals, flu shots, ear infections etc. Health industries need some change in their insurance policies. Thank for share.

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Purdue Pharma’s RxPatrol provides Twitter updates on pharmacy crime

BY Alaric DeArment

STAMFORD, Conn. — Pharmacy staff, law enforcement officials and loss-prevention personnel can follow updates about pharmacy robberies, burglaries and potential threats in their area through Twitter updates by a drug maker that developed a program to combat pharmacy crime.

Purdue Pharma, the manufacturer of the prescription painkiller OxyContin (oxycodone), said Monday that the tweets would provide safety and security tips for pharmacy staff and help them to better protect customers and their businesses. Purdue developed Rx Pattern Analysis Tracking Robberies and Other Losses, or RxPatrol, in 2003 in cooperation with industry, pharmacists and law enforcement to collect, collate, analyze and disseminate information on pharmacy theft.

The tweets provide specific information on robberies and burglaries, including the exact location of the incident, description of the suspect and any other information that could lead to the suspect’s capture.


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McKesson promotes specialty head to lead U.S. pharmaceutical division

BY Michael Johnsen

SAN FRANCISCO — McKesson on Monday named Mark Walchirk president of its U.S. pharmaceutical division, effective immediately. Walchirk, who most recently was chief operating officer of McKesson Specialty Health, has held numerous leadership roles at McKesson over the past 11 years, including COO of McKesson U.S. Pharmaceutical.

Walchirk succeeds Brian Tyler — who recently was appointed to serve as McKesson EVP corporate strategy and business development — and will report to Paul Julian, EVP and group president at McKesson. Walchirk will oversee McKesson’s largest business, which supplies branded, generic and over-the-counter pharmaceuticals and value-added business, clinical and connectivity solutions to more than 40,000 customers, including retail chains, independent retail pharmacies, hospitals, health systems, integrated delivery networks and long-term care providers.

“With past roles as chief operating officer of McKesson U.S. Pharmaceutical and McKesson Specialty Health, Mark Walchirk has deep leadership experience in our pharmaceutical distribution business and a proven track record of delivering results for our customers,” Julian said. 

Walchirk joined McKesson in 2001 and spent more than eight years in progressive leadership roles within McKesson’s U.S. Pharmaceutical business before being appointed president of McKesson Specialty Care Solutions in 2009. He led McKesson’s integration of US Oncology and assumed the role of COO for the newly combined organization, McKesson Specialty Health. In this role, he helped lead the business to record growth and introduce new solutions that empower the community patient care delivery system.

As SVP and COO of McKesson U.S. Pharmaceutical, Walchirk led the integration of regional distributors D&K Healthcare and McQueary Bros., contributed to the growth of McKesson’s Health Mart franchise, led the expansion of McKesson’s pharmaceutical distribution business in the institutional market, and guided McKesson to industry-leading levels of accuracy and efficiency across the company’s nationwide distribution network.

Before joining McKesson, Walchirk spent 13 years in medical-surgical distribution and manufacturing with Baxter Healthcare, Allegiance Healthcare and Encompass Group, holding various leadership positions in sales, marketing, operations and business development.

Walchirk earned his B.S. in business administration from the University of Illinois in 1988 and currently serves on the board of the Center for Healthcare Supply Chain Research and GS1 Healthcare US.


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