Like the Internet, the clinics aren’t going away. But an initial wave of enthusiasm does seem to be passing, as some clinics go bust and others scale back expansion plans, the WSJ reports. In the past few years, hundreds of clinics, typically staffed by nurse practitioners and physicians assistants, have sprung up in grocery stores, pharmacies and big-box retailers. They treat only simple ailments, post their prices for all to see and don’t require appointments. But the business model turns out to be a bit trickier than some thought. In recent months, 69 clinics in 15 states have shut down, including those in Wal-Marts and Medicine Shoppes (a unit of Cardinal Health). CVS is scaling back expansion plans for its MinuteClinics, and may close some of its clinics.
“We have seen fallout in this industry, on a smaller scale, that is not unlike the dot-com bubble,” Tom Charland, a consultant and former vice president for strategy at MinuteClinic, told the WSJ. “The big mistake was for people to think they could reach break-even in six months.” A more realistic target is 18 months to two years. Like the dot-com world, though, retail clinics will persist, even as some businesses fail. Walgreen still plans to more than double the number of its TakeCare clinics this year, adding some 240 locations by the end of the year. Source: The Wall Street Journal
Original Publication Date: May 7, 2008
May 08
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