The healthcare business is constantly evolving to meet the realities of patient needs and preferences. As traditional healthcare gets more expensive and complicated to access for many people, healthcare consumerism is making less pricey methods of care the desired option for would-be patients, leading to the rise of retail clinics.
Retail clinics located inside major retail stores, pharmacies, and grocery stores are now the pillar of a multi-billion-dollar industry, and their market share is expected to rise over the next decade. Their existence and popularity are illustrative of the ways the patient-physician dynamic is changing. The convenience and low barrier to entry for retail clinics are proving to be more enticing to patients than the idea of building a settled relationship with a primary care doctor.
Retail healthcare is here to stay and undeniably fills a need in the market, but they are not the solution for every medical situation. In this article, we’ll delve further into what makes retail clinics so appealing and how practice owners and physicians can adapt to operate alongside these clinics.
The effect of retail clinics on your practice
The first retail clinic in America was opened in 2001 in reaction to the frustrating wait time for the founder’s son’s strep throat treatment. That origin point set the precedent for what services would be provided from these sites. The linked study above found that over 90% of visits to retail clinics are made to access care for simple, acute illnesses and immunizations. By contrast, these issues made up 12% of emergency visits, 13% of primary care visits, and 30% of pediatric care. A RAND study found that young adults, a demographic that often doesn’t visit traditional practices and is less likely to have an established relationship with a primary care doctor, were the largest population served by retail clinics.
This aligns with the lived experience expressed by physicians who participated in our Sermo poll on the subject. When asked how the presence of retail clinics has affected their practice, 24% of medical professionals viewed the reduction in patient visits for low acuity conditions as the most positive impact on their work. Another 17% believed the improved access to care for people in underserved communities was where the biggest effects were made. “Retail clinics are now providing off-hours care and unburdening primary care with night calls and office disruption with emergency fill-in patients. This works especially well if patients are encouraged to use the walk-ins, and not helpful if practitioners trash them unnecessarily,” said an internal medicine physician adding to the discussion in the Sermo community.
Some physicians are less receptive to the utility of retail clinics than others. Another 23% of physicians polled by Sermo also associated the use of retail clinics with a rise in patient confusion and care fragmentation, which could lead to a litany of other problems for patients, physicians, and medical organizations. Whatever misgivings individual physicians may have about retail clinics, it’s clear they are here to stay, and doctors working in hospitals and private practices must learn how to demonstrate the value of their position.
“Retail clinics haven’t replaced traditional care in my practice, but they’ve definitely shifted patient expectations. Some patients go there for quick things like sore throats or vaccination updates, and then circle back to me for ongoing issues. In a way, it’s made continuity of care more fragmented, because I don’t always get notified when they’ve been treated elsewhere,” explained a GP. “At the same time, it’s pushed me to be more accessible—patients are used to fast service now, so delays or scheduling barriers can lead them to bypass us altogether. I wouldn’t say it’s hurt relationships, but it has made me work harder to reinforce my role as the long-term, trusted clinician rather than just another option.”
Physician concerns about the retail clinic model
There are many situations where visiting a retail clinic makes sense, but medical professionals are also wary of the limits of this care model. On Sermo, physicians were asked to identify their biggest concerns regarding retail healthcare. Here is what they said, ranked in order of the most physician votes. Only 9% of participating physicians did not have any major concerns.
Inconsistent quality or training of retail clinic staff (32%)
The primary worry about retail clinics is that the level of care in these environments is not reliably good enough to help patients with their conditions. Retail healthcare is designed to treat low acuity issues, but its inherent structural limitations mean they don’t have the same capabilities as traditional practices. Retail clinics are just one segment of a retailer’s business strategy, meaning that employees may not undergo an appropriate amount of training or receive the institutional support they need to deliver better service. This can lead to more varied standards of care and add needless complexity to any treatment plan.
Fragmentation of care and poor care continuity (30%)
Retail healthcare’s effect on care fragmentation is another facet that inspires skepticism around this care model. Some patients overvalue short-term relief and undervalue long-term care. “They believe that rapid access to medications is the quick solution to illnesses; however, they often delay or modify the natural course of the disease and make it more difficult for them to receive timely care,” explained a pediatrician on Sermo.
A lack of understanding about a patient’s treatment history, medications, or other personal details can lead to preventable mistakes, such as misdiagnoses or prescribing something that negatively interacts with other medications or allergies. This can be especially problematic for people with chronic conditions who require regular care. Fragmented care may also mean that preventative measures are less likely to take place and help someone avoid getting sick due to the episodic nature of retail treatment.
Erosion of patient-physician relationships (11%)
The lack of continuity also diminishes the potential of physicians developing an ongoing relationship with patients. Visitors to retail clinics often see different medical professionals each time they go, and they will inevitably have less knowledge or personal investment in their care. Better patient-physician relationships often lead to more positive health outcomes. Retail clinics short-circuit that process, and while that may be okay when dealing with low-acuity issues, it could become more of a problem for anyone with more serious or chronic conditions.
Lack of communication or data-sharing with existing providers (10%)
Retail clinics usually don’t have access to the same medical records found in hospitals and private practices. These information gaps limit the scope of care that can be provided by the staff who work there. Fixing this issue is easier said than done. The different electronic record systems used by retailers and other health organizations make exchanging medical information very difficult.
Financial pressure on private practices (7%)
Acute conditions may not make up a large segment of a practice’s workload, but losing those patients does have an impact on the financial outlook of healthcare organizations. According to the American Medical Association, Medicare physician payment has declined 29% since the turn of the century, when adjusted for inflation. Seeing fewer patients will impact the business prospects of most practices.
Voicing these concerns is not to say that retail clinics have no place in the market. They simply show why they should not be seen as an optimal solution for every patient or medical condition. When asked to define the best role for retail clinics in the broader healthcare system, most physicians on Sermo agreed that they are useful in some fashion:
- 30% of participating doctors felt retail healthcare was helpful for triaging minor conditions
- 24% viewed them as a stopgap to fill gaps in access
- Another 15% saw them as a complementary option that can improve care delivery in traditional medical settings
- And 16% of polled physicians considered retail healthcare as a legitimate threat to standard care models.
The appeal of retail clinics: Convenience vs. comprehensive care
Patients are evaluating the practicality of retail clinics against a different set of factors than primary care physicians. In a Sermo poll, 30% of doctors believed that their patients perceive retail healthcare as better for quick needs, but are not a substitute for chronic care, 21% attributed their popularity to their heightened convenience, and another 15% thought they were cheaper and easier to navigate.
Here is why they may choose to visit these clinics when in need of care:
Pros and cons of retail clinics for patients
Pros
- Easy to get into – Retail clinics make healthcare much more accessible to people with fewer resources or from underserved communities.
- Extended hours – Retail clinics are open for longer hours, allowing people to visit them whenever their schedules allow.
- No appointments necessary – When a patient is feeling under the weather, waiting until your primary care doctor has an open appointment slot can be frustrating. With retail health clinics, patients can seek treatment immediately without scheduling an appointment.
- Set prices for each service – About half of US adults struggle to afford healthcare costs. Fixed pricing goes a long way to removing the anxiety from seeking healthcare. Retail clinics have set prices for their services, which makes it easier for visitors to organize their budget. These prices are also significantly lower than those found in traditional care sites.
Cons
- They might not provide adequate care – Retail clinics are built to treat low-acuity conditions, so patients with more serious health conditions may be referred to another facility for care.
- Consult details may not be passed over to more adequate physicians – Data sharing between retail clinics and other medical practices is not a given process. This means that important information pertaining to the patient’s health may not be sent to other physicians, further complicating any long-term treatment plan.
Strategies for practices to adapt and compete with retail clinics
Retail clinics benefit a lot of people, but they are not the be-all end-all for medical care. Sermo asked physicians how hospitals and private practices can adapt to compete with retail healthcare, and here is what they suggested:
Strengthening after-hours and same-day access
A signature draw of retail clinics is the expedited access to care. No appointment is required, and patients can begin receiving medical attention within minutes of visiting the site. Traditional practices may struggle to reach that level of immediacy, but more can be done to make physician access more attainable for patients who need same-day care. Streamlining the appointment process will make visiting your practice more appealing for potential patients.
Improving care coordination and follow-up
Primary care organizations can take greater measures to highlight the ways in which care continuity leads to better health care by investing more time and effort into setting up follow-up appointments and outlining a plan to help patients recover from their conditions. This helps cultivate stronger patient-physician relationships and builds trust in your practice, increasing brand loyalty.
Doctors can use Sermo Mobile to schedule follow-ups with patients securely within their current workflow. Our patient-calling tool helps physicians stay in touch with patients securely, with free and unlimited international calls that keep your private contact details protected.
Partnering or integrating with retail clinic networks
The lack of shared records between retail clinics and larger practices may inhibit some from visiting more traditional (and more expensive) care facilities. Partnering with local retail clinics closes the distance between the care models. Combining medical records from both facilities makes it easier for patients to visit either site depending on their needs, and receive better treatment. Retail healthcare clinics could also represent a nice side gig for physicians to make more money, network with fellow professionals, and supervise APPs in a new environment.
Enhancing communication and convenience for patients
Some of the frustration patients feel throughout the medical experience stems from the conflicting or erratic communication from their practices. Doctors can establish wider lines of communication with their patients to develop a rapport, keep patients informed about any changes to their treatment plan, and address any questions they may have about the process.
Focusing more on complex and longitudinal care
There’s also a train of thought that, if retail clinics are set to continue as a practical place for people to get treatment for simple conditions, then hospitals and private practices should accept their place as the primary destination for more complicated or chronic problems and orient their business and working processes around that brand reputation.
The bottom line for doctors
Retail clinics are shifting what patients prioritize and expect from their medical care. Despite the benefits of retail healthcare, these clinics are unequipped to handle more serious or recurring conditions. Traditional practices should view the popularity of retail clinics as an opportunity to evolve and make their services more accessible to patients.
The convenience, lower costs, and ease of access to retail healthcare mean it will always present a convincing argument for many people seeking treatment for low-level maladies. Rather than being hostile to their existence, it’s on physicians operating in traditional environments to emphasize the value of their services and perspective to remind patients when a visit to a primary care physician is necessary. There are plenty of scenarios where visiting retail clinics won’t suffice.
There will always be a gap between retail clinics and larger health-focused organizations, but that gap doesn’t need to impact physician practices extensively. Resisting the impact of retail clinics will do nothing for the financial or reputational status of hospitals or private practices. The growth of retail healthcare represents a fundamental shift in what patients prioritize in the search for care: affordability and access are more important than ever. Traditional healthcare organizations must keep that in mind when evaluating their place in the industry. To be competitive in this new landscape, hospitals and private practices must make themselves more accessible to a wider audience, invest more in building patient-physician relationships, and clearly illustrate why continuous care from the same doctor is in a patient’s best interest. Doctors must become advocates for interoperability so that data from retail clinics and hospitals can flow seamlessly into the same record to remove any care gaps.
Sermo provides a platform for physicians across the globe to share competitive strategies for how to work alongside retail clinics, advocate for systemic improvements and to raise care standards. Sign up for Sermo today to join in on the conversation with your peers.
