Whatever Happened to Retail Health Care?

Just a few years ago, there was a palpable sense we were going to see consumer behaviors change in a way that favors the rise of retail medicine. The core assumptions were people would be more price sensitive because they pay more out of pocket; demand greater convenience; and, channel more of their spending into preventive and routine care so that they could avoid higher cost hospitalizations.

We spoke of health care expanding broader and deeper; deeper in the sense that combining genetic profiling with nano-technology would create mass-customization of medicine, and broader in the sense that consumers would extend their definition of health care to include things like personal trainers and living "green" as well as doctors, hospitals and pharmacies.

The relatively low-profile of retail medicine today begs the question: were we wrong?

I'd argue not. Certainly, those who operate retail sites believe they are a viable competitor to the classic physician office-based, hospital-centric business model. As noted in an August 20 artricle in Modern Medicine, a host of new retail services are being offered, including Walgreen's subsidiary Take Care adding dermatology procedures; and CVS' Minute Clinic offering treatment for motion sickness and corneal abrasions, sports and college physicals, and vaccinations.

I heard affirmation of the vitality of the retail model from the senior leadership team of a large integrated health system in the northeast. The team is exploring how to activate their brand in a retail channel; and shape conventional channels with retail principles. My sense is they are ahead of the game. My believe is that it will pay off in a meaingfully different market position that will drive future growth.

If your team has lost the focus to build a retail presence in the market, re-check your vision. If you need inspiriation or validation, the senior consultants at Navvis & Company can facilitate a discussion to assess and tune-up your retail strategies.

Mike Eaton