March 11, 2008

Retail Health Clinics Increase Foothold And Influence Purchasing

Consumers Cite Convenience And Cost Benefits — But Not Quality

by Julie Snyder

with Carrie Johnson, Kate van Geldern

Executive Summary (This is a document excerpt)

Retail-based health clinics continue to seek their foothold in the market as consumers search out convenient treatment for minor conditions and retailers look to secure not only clinic visit business but also purchases that consumers make before or after their visit. Given the sales they are bringing in, primarily with prescription drug and over-the-counter medication purchases, health clinics will remain a consideration for retailers. But consumer visitation is still low, and the business model for retail-based health clinics is not set in stone. Wal-Mart recently shuttered — and then quickly rebranded — some of its health clinics, and consumers show concerns surrounding clinics' quality. Channel and product management professionals with providers, retailers, and health plans must enter this space carefully and monitor consumer drive and quality concerns in order to secure revenue and secondary sales from clinics.

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