Skip to main content
Sister Publication Links
  • ESG: THE NEW IMPERATIVE
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • COVID-19
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Transformation
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Digital Health
  • Insights
    • ACA 10 Years After
    • Best Practices
    • Special Reports
    • Innovations
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Supply Chain
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • MORE +
    • Contact Us
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Providers
Sponsored Content
This content was paid for by an advertiser and created in collaboration with Crain's Custom Content.
September 13, 2017 01:00 AM

A Clinic on Every Corner: The Retailization of Healthcare

  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    More and more consumers are utilizing retail clinics, urgent care centers and freestanding ERs to get medical care when and where they want it.1 In this interview, Joy Henderson of Truven Health Analytics®, part of the IBM Watson Health™ business, offers advice to hospitals looking to expand into this new frontier.

    A Fellow in the American College of Healthcare Executives, Joy Henderson is a National Director for Planning Solutions at Truven Health Analytics®, part of the IBM Watson Health™ business. She has more than 20 years of experience in the healthcare industry with a focus on strategic planning and analytics to help hospitals make informed decisions.

    Why should hospitals embrace the "retailization" of healthcare?

    JH: The most important reason is that their consumers are demanding it. Our PULSE survey data shows that younger segments are much more likely to use urgent care than the average across the U.S. They're less likely to have a relationship with a primary care physician—they care more about convenience. Sixty percent of ED visits aren't emergent. If we took 10% of those visits and moved them to the urgent care setting, that would save about $1,000 each, or $8 billion out of national healthcare spending. We can't ignore that opportunity.

    What role do retail locations play in the emerging valuebased care ecosystem?

    JH: Value-based care models vary widely, but retail can play a key part in models focused on the cost and quality of a defined population, like the Medicare Shared Savings Program. According to our MarketScan claims database, the average payment for an ED visit is nearly nine times the cost of an urgent care visit. The utilization of less expensive care settings for low-risk visits can help reduce the overall cost of care. And it logically follows that if the location is convenient and lower cost, a patient could be more likely to use it or get their care earlier, before it progresses and requires a more intensive and costly care setting.

    Should healthcare systems continue to invest in this type of expansion amid uncertainty about reimbursement and regulation?

    JH: Absolutely. Regardless of changes in regulation or reimbursement, I believe value-based care is here to stay. Even without value-based care, we are anticipating that consumers will continue to demand convenient locations.1 Even ignoring consumer demand, medical advances are shifting care to outpatient settings. At Truven, we forecast inpatient volume growth of less than 3% over the next decade, while outpatient volume is expected to grow by over 20%. Within that outpatient volume, we forecast that urgent care services are expected to grow 120%. Many factors are pushing us in the direction of retail.

    What's your best piece of advice for health system planners looking to expand their outpatient footprint?

    JH: Location, location, location! Patients won't utilize your outpatient center or retail center as readily if it's not in a convenient location, so don't just look at your population growth or your volume growth by zip code. Narrow your plans down to block groups or neighborhoods, and look at data, such as traffic patterns. Consider what businesses are adjacent to it. What's the ease of access? How close is it to public transportation? For large projects especially, hire a consultant with specific knowledge in healthcare retail. It's a multimillion dollar investment and you only have one chance to locate it in the right place – it's worth the investment to get that right.

    Footnotes

    1. According to an April 2017 report from Kalorama Information: http://www.prnewswire.com/news-releases/urgent-care-market-reaches-15-billion-as-locations-patient-visits-rise-300435256.html.


    Sponsored By:
    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Modern Healthcare A.M. Newsletter: Sign up to receive a comprehensive weekday morning newsletter designed for busy healthcare executives who need the latest and most important healthcare news and analysis.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • COVID-19
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Digital Health
    • Insights
      • ACA 10 Years After
      • Best Practices
      • Special Reports
      • Innovations
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Supply Chain
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • MORE +
      • Contact Us
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing