Retail Clinics and the In-Store Healthcare Market 2009: Bright Spot in the Current Economy

The appearance of in-store health clinics is a significant trend for pharmaceutical and POC diagnostic market watchers, as well as for those in retail. When last Kalorama published the first syndicated market research study on the emerging trend of in-store clinics in 2007, retail clinics were a novel trend. Now, with a few years of activity, they are established in food, drug, mass merchandizing and other stores, with both successes and failures. There is growth in some projects, scalebacks in others. Kalorama has analyzed these developments and returned to examine the state of the market in 2009.

In this market research report, Kalorama outlines many of the factors that will determine the future of the retail clinic concept:

• Overview of Successes and Failures in this Market
• What Consumers Think About Retail Clinics
• Statistics on the Current Number of Clinics in the U.S.
• Projections for Future Growth of Clinics
• Markets for Vaccines to Retail Clinics
• Markets for POC Diagnostic Products to Retail clinics
• Calculations of the Indirect Revenue that retail clinics can add to Store Income.
• Types of Stores (Food Store, Drug Store, Mass Merchandize or box store, Other) that will most benefit from retail clinics
• How the 2009 economy will shape the retail clinic market
• Other Trends That will Impact this Market
• Company Profiles of Major Retail Clinic Companies

Information for this report was gathered from a wide variety of published sources including company reports, catalogs, materials and public filings; government documents; trade journals; newspapers and business press; analysts’ reports and other sources. Interviews with company representatives were conducted to capture the perspectives from industry participants’ point of view and assess trends, and form the basis of the forecasting and competitive analysis. Dollar figures represent the U.S. market and are expressed in current dollars. Sales estimates are provided for the historic 2003 to 2008 period and forecasts are provided through 2013. The size of each market segment refers to manufacturers’ revenues.

CHAPTER ONE: EXECUTIVE SUMMARY

Scope and Methodology

The U.S. Healthcare Market

The Need for Alternatives

Healthcare Reform

Out Of Pocket Expenditures

Figure 1-1: Growth of U.S. Retail Clinic Services

Retail Clinics Business

Suppliers

Retail Outlets

Drug Stores

Food Stores

Mass Merchandisers

Other Outlets

ISSUES AND TRENDS

Slowing Economy

Competition with Primary Care Providers

Regulation

Development of Standards

Expansion of Services

Labor Shortages
 

 

CHAPTER TWO: INTRODUCTION

Convenience Clinics vs. Urgent Care Clinics

Retail Clinics Today

Business Model

Services

Staffing

Target Customers

Pricing

Costs

Advertising and Promotion

Insurance

Consumer Response

Table 2-1: Consumer Response to Retail Clinics

Table 2-2: Consumers More Willing to Try Retail Clinics Retail Clinics: .

Growth Drivers

Economic Pressures on Consumers

Consumer Responsibility for Health Care

Benefits of Prevention

Challenges

Standards of Care

Patient Flow

Medical Community Response

Reaction from Managed Care Organizations

Ability to Meet Financial Expectations

Table 2-3: Estimated Number of U.S. Convenience Clinics, 2009 - 2013

Choice of Outlet

Table 2-4: Characteristics of Retail Outlets, 2009 Characteristics of Retail Outlets, 2009 (Type of Shopper, Typical Frequency, Products Purchased, Degree of Health Care Products Purchased, Loyalty to Store, Level of Browsing, Level of Trust, Volume of Traffic )

Systems and Scheduling

Funding and Expansion

Table 2-5: Benefits and Drawbacks of Convenience Clinic Funding Alliances

CHAPTER THREE: RETAIL CLINICS BUSINESS

Service Providers

The Industry

Retail Clinic Sales Forecasts

Table 3-1: The U.S. Market for Retail Clinic Services, 2003-2013

Figure 3-1: Growth of U.S. Retail Clinic Services

The Market

Competititve Positions of Key Players

Table 3-2: Leading Service Providers’ Revenues and Market Share

Figure 3-2: Market Shares of Leading Retail Clinic Service Providers

CHAPTER FOUR: MARKETS FOR PHARMACEUTICAL AND DIAGNOSTIC SUPPLIERS IN RETAIL CLINICS

Table 4-1: Sales to Retail Clinics by Supplier Segment

Point of Care Tests

Figure 4-1: Growth of Retail Clinic Supplier Sales by Type of Supplier The Industry

Table 4-2: U.S. Professional POC Test Sales

Competitive Positions of Key Players

Table 4-3: Leading POC Test Makers’ U.S. Revenues and Market Share

Convenience Clinic Sales Forecasts

Table 4-4: U.S. Professional POC Test Sales to Retail Clinics,

Clinical Chemistry Immunoassays

The Industry

Table 4-5: U.S. Clinical Chemistry and Immunoassay Sales, 2003-2013

Table 4-6: Leading Clinical Chemistry and Immunoassay Suppliers

Table 4-7: U.S. Clinical Chemistry and Immunoassay Sales to Convenience Clinics, 2003-2013

Vaccines

Table 4-8: Diseases for which Vaccines are Available in the U.S., 2009

The Industry

Table 4-9: U.S. Market for Preventative Vaccines

Competitive Positions of Key Players

Table 4-10: Leading Vaccine Manufacturers’

U.S. Revenues and Market Share 2008

Convenience Clinic Sales Forecasts

CHAPTER FIVE: OPPORTUNITIES FOR RETAIL OUTLETS

Table 5-1: Number of Retail Clinics by Type of Retail Outlet, 2003-2013 ($ Million)

Figure 5-1: Proportion of Retail Clinics by Type of Retail Outlet, 2003-2013

Table 5-2: Rents Collected From Retail Clinics by Type of Retail Outlet, 2003-2013

Figure 5-2: Proportion of Rents Collected From Retail Clinics by Type of Retail Outlet, 2003-2013

Table 5-3: Indirect Income Generated by Retail Clinics by Type of Retail Outlet, 2003-2013

Figure 5-3:Proportion of Indirect Income Generated by

Retail Clinics by Type of Retail Outlet, 2003-2013

Drug Store

Table 5-4: Selected Retail Outlet Relationships with Convenience Clinics, 2009

Table 5-5: U.S. Drug Store Sales,, 2003-2013

Table 5-6: Leading U.S. Drug Stores’ Revenues and Market Share, 2008

Table 5-7: U.S. Drug Store Direct Retail Clinic Revenues, 2003-2013

Figure 5-4: Direct vs. Indirect Revenues to Drug Stores From Retail Clinics, 2003-2013

Table 5-9: U.S. Food Store Sales,, 2003-2013

Figure 5-5: Direct vs. Indirect Revenues to Food Stores

Mass Merchandizers

Table 5-13: U.S. Mass Merchandiser Retail Sales,

Competitive Positions of Key Players

Table 5-14: Leading U.S. Mass Merchandisers Retail Revenues and Market Share

Table 5-15: U.S. Mass Merchandiser Direct Retail Clinic Revenues

Table 5-16: U.S. Mass Merchandiser Indirect Retail Clinic Revenues

Figure 5-6: Direct vs. Indirect Revenues to Mass Merchandisers

Other Retail Clinics

Table 5-17: U.S. Other Retail Sales, 2003-2013

Table 5-18: Leading Other Outlets Revenues and Market Share

Table 5-19: U.S. Other Outlets Direct Retail Clinic Revenues, 2003-2013

Table 5-20: U.S. Other Outlets Indirect Retail Clinic Revenues, 2003-2013

Figure 5-7: Direct vs. Indirect Revenues to Other Outlets From Retail Clinics, 2003-2013

CHAPTER SIX: TOTAL MARKET

Table 4-1: Retail Clinic Service Revenues, 2003-2013

Table 4-2: Sales to Retail Clinics by Suppliers, 2003-2013

Table 4-3: Revenues to Retailers from In-Store Clinics, 2003-2013

Figure 4-1: Revenues to Retailers from In-Store Clinics, 2003-2013

CHAPTER SEVEN: ISSUES AND TRENDS

SLOWING ECONOMY

COMPETITION WITH PRIMARY CARE PROVIDERS

REGULATION

Overview

Regulation of Convenience Clinics

DEVELOPMENT OF STANDARDS

EXPANSION OF SERVICES

LABOR SHORTAGES

CHAPTER EIGHT: COMPANY PROFILES

ATLANTICARE

AURORA QUICK CARE

MEDBASICS

MEDDIRECT

MINUTECLINIC

MY HEALTHY ACCESS

QUICK HEALTH

NOW MEDICAL CENTERS

REDICLINIC

TARGET MEDICAL SERVICES

TAKE CARE HEALTH SYSTEMS

SOLANTIC