NEW YORK, June 16, 2015 /PRNewswire/ -- In addition to boosting its core drugstore business, CVS is about to cement its position as the largest retail clinic operator according to Kalorama Information. CVS will gain 80 retail health clinic locations as part of a proposed deal with Target announced June 15th. Kalorama, a market research firm specializing in healthcare, has published several market research reports tracking health clinics providing basic medical care inside drugstores and grocery stores. Its latest report is Retail Clinics 2015.
Woonsocket, R.I. – based CVS, the largest provider of prescription drugs in the U.S., announced it would be taking over 1,660 drugstores inside Target locations, which will be designated as "CVS pharmacy" locales. The deal also includes Target's nearly 80 medical clinics, which will be changed over to CVS's MinuteClinic banner. Target will build another 20 in Target locations. The company plans to operate 1,500 clinics by 2017.
"This might be an underreported detail in a deal of this size, but we think it's significant," said Bruce Carlson, Publisher of Kalorama Information. "CVS has made it a goal to expand its provision of health services and to benefit from the indirect revenue clinics provide to the pharmacy operation. They now get new locations without the build-out, they get a new venue for new clinics, and they have a chance to turn the Target clinic operation into a consistent national brand that consumers can identify."
Competitors will have a hard time catching up, Carlson says. Target was not a large operator but one with a longer history. The deal will provide CVS with more than half of the 1 billion-dollar retail clinic services market. Walgreens, The Little Clinic, RediClinic also maintain locations, and there are many other small providers.
Convenience clinics, also known as retail health clinics, are typically located in stores, malls and other retail locations, making them convenient for shoppers. They share basic characteristics. Clinics are usually staffed by nurses or nurse practitioners and feature a high transparency of pricing, with rates often prominently displayed. Low cost services are enabled by high throughput and cost containment, with broad purchasing power across many locations. Increasingly clinics accept payment not just through insurance but by cash, check or credit card as well.
"Since our first tracking of retail clinics in 2007, we noticed a trend that drugstores benefit most from the concept," Carlson said. "Of those chains, CVS has really moved forward with the concept."
Kalorama Information's report, Retail Clinics 2015: Growth of Stores, Consumer Opinion, Leading Competitors, Sales of Products to Clinics (Diagnostic Tests, Pharmaceuticals, Vaccines), Clinic Sales Forecasts and Trends contains more results on reasons for visits and patient satisfaction with retail clinics. In addition, it provides store clinic numbers, how much revenue store clinics make, and trend information. The report can be found at http://www.kaloramainformation.com/redirect.asp?progid=87402&productid=8792050.
About Kalorama Information
Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. Reports can be purchased through Kalorama's website and are also available on www.marketresearch.com and www.profound.com.
We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog at www.kaloramainformation.com.
SOURCE Kalorama Information