A new way to slow down rising health costs?

Walk-in retail health clinics – which provide convenient but limited health services – are spreading across America, as more than a dozen clinic operators plan to open thousands in stores such as CVS, Wal-Mart, Walgreens and Kerr Drug, says Julie Schmit in USA Today.

The main value of walk-in chains is cost. While the clinics vary by company, most treat 25 to 40 medical conditions and charge $45 to $75 a visit, says Schmit. They reduce their costs in a number of ways, including using more Nurse Practitioners (NPs):

NPs make, on average, less than half of what family doctors make, yet have advanced degrees and can write prescriptions.

In addition, they not only diagnose ailments but also input computer data, process payments, dispense tip sheets on how to avoid future illness and send patients thank-you notes, reducing labour needs.

Cost savings have been substantial, compared to regular doctor visits:

HealthPartners, a Minnesota-based HMO, analysed two years of claims data of MinuteClinic, a large walk-in chain, and found total costs about 25 per cent less compared with those done at doctors' offices or urgent-care clinics.

Twin City Pipe Trades, a Minnesota health insurance company, charges the insured a $15 co-pay for doctor visits but waives co-pays for MinuteClinic visits because they cost at least 30 per cent less than regular doctor visits.

But price isn't the only driver within the retail clinic industry, says Schmit:

Convenience is a large factor, especially for minor or common ailments, where going to a doctor would be inefficient and costly.

Competitive retailers such as Wal-Mart are seeking to give customers another reason to choose their store over others.

Source: Julie Schmit, Could walk-in retail clinics help slow rising health costs?, USA Today, August 24, 2006.

For text: http://www.usatoday.com/printedition/news/20060824/1a_cover24.art.htm?POE=click-refer

For more on Health Issues: http://www.ncpa.org/sub/dpd/index.php?Article_Category=16

FMF Policy Bulletin/ 29 August 2006