The rise of retail healthcare and the financial impact on your practice

The rise of retail healthcare and the financial impact on your practice

A McKinsey & Company report discussed a rising concern for healthcare providers, the concept of retail health. Rather than visiting a traditional practice, many patients are simply visiting clinics located in their local grocery stores or pharmacies.

 “2 out of 3 patients are more willing to use
retail services over traditional healthcare providers.”

The main reason is that the cost is typically lower due to employee health plans or out of pocket expenses. Similar services compare at $110 for retail and $166 for a doctor’s office.

The article suggests that while patients may not be seeing a doctor at a retail clinic, they’re typically seeing a nurse practitioner. Other benefits are wait times are almost always shorter and there is no need for an appointment. Retail health is becoming a more viable option every year. On average, there are 10 million visits in over 1,800 locations each year. That amounts to $1,952 in lost revenue for each primary care provider.

What does this mean for your practice?

Retail heathcare providers are becoming a more viable option for patients. Is your practice prepared to handle the loss of income from this competition?

Talk to Provider Web today and see how our financial tools can help.

Article originally appeared on mckinsey.com Date: December, 2015 Written by: Jenny Cordina, Rohit Kumar, and Christa Moss

Designed by