By Katherine Hobson Drugstores are trying to bolster their presence in the in-store clinic market, even though the concept has thus far not been a particularly profitable one. The WSJ reports that CVS Caremark may double its number of MinuteClinic retail operations over the next five years.
The company has no plans to forge financial partnerships with medical providers, but instead prefers “collaborative” non-financial ties, MinuteClinic President Andrew Sussman tells the paper. Bloomberg quotes Gabelli analyst Jeff Jonas as saying that CVS has trimmed its losses on its MinuteClinics from the five cents a share that they were costing the chain two yeas ago.
Meantime, Walgreens’ Take Care Clinic has recently said it’s in “deep discussions” with possible hospital system partners. Joint ventures, franchises and other business models are all on the table, as long as the arrangement is a “winning situation” for both sides, Take Care Chief Executive Peter Miller tells the WSJ.
CVS and Walgreens dominate the in-clinic market, with a 72% share of the market, according to a report released last year. The WSJ says operators are attempting to find a way to “overcome the seasonal nature of the business, which has caused some companies to shut clinics outside of flu season.”
Both company's are losing money on in store Clinics, Now ask yourself WHY.Why.why ..
I am not against Clinic's when the business model has been developed by those folks who know healthcare.