In the USA, there has been an increasing enthusiasm in recent years for the business model of the so-called "retail clinic", which experienced a real boom, particularly in the years 2006 to 2008. Supermarket chains and drugstores offer medical services through special and advertising-oriented offers. The decisive factor in their advertising strategy: it has to be fast and cheap.
However, the concept behind the "retail clinics" model is not new. Comparable ideas can also be found in the automotive industry, aviation, gastronomy or retail stores. They specialize in a particular target group, select a particular type of service, have standardized procedures and can thus guarantee a certain quality and offer it cost-effectively on the market. The inventor of "retail clinics" based this on the business model of the McDonald's fast-food restaurant. Customers choose their menu from a limited and low-cost range, as the processes are highly standardized and designed to be customer-friendly.
This paper deals with the business model of "retail clinics" and will present the past and current market situation in the USA. The focus will be particularly on the business management possibilities of this business model. Furthermore, the possibility of transferring this business model to the German health care system will be evaluated by looking at the opportunities and difficulties. Actors in the German healthcare system who might have an interest in this model will also be identified. Finally, comparable concepts that already exist in Germany will be presented.
Table of Contents
1 INTRODUCTION
2 THEORETICAL BACKGROUND OF THE BUSINESS MODEL APPROACH
3 "RETAIL CLINICS"
3.1 Development and market situation of "retail clinics"
3.2 Business model approach of "retail clinics"
3.2.1 Performance Model
3.2.2 Production Model
3.2.3 Market Model
3.2.4 Cost model
3.2.5 Revenue model
4 THE "RETAIL CLINIC" APPROACH IN GERMANY
4.1 Difficulties
4.2 Opportunities
5 INTERESTED PARTIES IN THE CONCEPT OF "RETAIL CLINICS"
5.1 Interested actors
5.2 Similar concepts in Germany
Research Goal & Topics
This work explores the business model of "retail clinics," analyzing their market success in the USA and evaluating the feasibility, opportunities, and challenges of transferring this care model into the complex German healthcare system.
- Business model analysis of retail clinics (performance, production, market, cost, and revenue).
- Market development and distribution strategies of retail clinics in the USA.
- Comparative analysis of the German and US healthcare environments.
- Evaluation of potential obstacles to transfer, such as regulation, remuneration, and acceptance.
- Examination of potential stakeholders and existing comparable healthcare initiatives in Germany.
Excerpt from the publication
3.1 Development and market situation of "retail clinics"
QuickMedx first opened a retail clinic in a Minnesota supermarket in 2000 (Iglehart, 2015, p. 301; Thygeson, Van Vorst, Maciosek & Solberg, 2008, p. 1283). By 2005, 60 new clinics had been built (Scott & Leifer, 2011, p. 7). There was a great upswing in the years from 2006 to 2008. While in 2006 there were initially 160 clinics, this number has subsequently increased tenfold within two years to 982 "retail clinics" in 33 states (Rudavsky, Pollack & Mehrotra, 2009, p. 317). The rapid increase in such clinics suggested that by the end of 2012 even 2500 to 6000 "retail clinics" would be created (Scott, 2007, p. 6). From 2008 to 2013, the number of retail clinics doubled to 1600 clinics within five years (Hwang & Mehrotra, 2013, n.d.). According to Iglehart (2015), there are now almost 1900 such clinics in the USA (p. 301).
The largest market share is taken by retail companies with about 70%. Companies such as CVS Caremark, Walgreens or Target should be named as examples. Medical companies such as hospital chains or medical groups have a market share of 20% in comparison. Independently owned retail clinics account for 10% of the market (Scott & Leifer, 2011, p. 7).
Summary of Chapters
1 INTRODUCTION: Outlines the origins of the "retail clinic" model in the US and defines the scope, research goals, and limitations of the study regarding the German healthcare environment.
2 THEORETICAL BACKGROUND OF THE BUSINESS MODEL APPROACH: Defines the concept of a business model and establishes a framework for sub-models that describe company operations, resources, and performance.
3 "RETAIL CLINICS": Provides a comprehensive overview of the US healthcare system and details how retail clinics are structured through performance, production, market, cost, and revenue models.
4 THE "RETAIL CLINIC" APPROACH IN GERMANY: Critically evaluates the transferability of the US retail clinic concept, focusing on the bureaucratic, regulatory, and systemic challenges in Germany contrasted with potential opportunities.
5 INTERESTED PARTIES IN THE CONCEPT OF "RETAIL CLINICS": Identifies potential actors—such as doctors, pharmacies, and patients—who might benefit from this model and examines similar existing projects in Germany.
Keywords
Retail Clinics, Healthcare Business Model, US Healthcare System, Market Model, Outpatient Care, Healthcare Innovation, Managed Care, Service Providers, Preventive Services, Healthcare Regulation, Medical Coverage, Retail Sector, Nurse Practitioners, Healthcare Fragmentation, Healthcare Economics.
Frequently Asked Questions
What is the core subject of this publication?
The paper examines the business model of "retail clinics"—medical clinics located in retail environments like supermarkets or pharmacies—and explores their potential applicability within the German healthcare landscape.
Which topics are central to this research?
Central topics include the characterization of retail clinics as a business model, the growth dynamic of this service in the USA, and the feasibility of translating this concept into a highly regulated healthcare system like Germany's.
What is the primary goal of the study?
The primary goal is to assess the market structure of retail clinics in America and to discuss whether this model can provide a solution to challenges in the German healthcare system, such as undersupply in rural areas.
What research methodology is employed?
The work utilizes a descriptive, comparative analysis approach based on existing literature, legal frameworks, and empirical studies from both the US and German healthcare sectors.
What is covered in the main section?
The main section details the structural components of the retail clinic business model (the 5-model approach) and conducts an in-depth, critical discussion of the potential barriers and opportunities for its introduction in Germany.
What keywords characterize the work?
Key terms include "retail clinics," "healthcare business model," "managed care," "outpatient care regulation," and "healthcare economics."
Why are retail clinics considered more cost-efficient in the US?
They are described as cost-efficient because they utilize standardized procedures, focus on simple, high-frequency treatments, and are often staffed by less expensive healthcare personnel such as nurse practitioners instead of physicians.
What are the primary obstacles to introducing retail clinics in Germany?
Major obstacles include Germany's strict regulatory oversight, the complexity of the current remuneration systems, the legal necessity for diagnostic services to be performed by licensed physicians, and concerns regarding the fragmentation of patient care.
Could retail clinics help solve the doctor shortage in German rural areas?
Yes, the document suggests they could potentially provide relief by offering accessible, simple, and acute medical treatments in regions where traditional medical practices are declining or undersupplied.
- Arbeit zitieren
- Anonym (Autor:in), 2015, The Retail Clinics business model. Analysis of the market environment and situation, München, GRIN Verlag, https://www.grin.com/document/1319028
