Retail is positioned to play a significant role in the future of healthcare as the pandemic accelerates a trend that had been underway for a while: namely the adoption of retail health clinics.
According to a report by UPshow, during the pandemic, 32% of consumers increased their use of retail health clinics and 49% of respondents said that they are more likely to use a retail health clinic after the pandemic. From the healthcare provider perspective, 74% of executives surveyed said that traffic has increased during the pandemic.
In addition to the uptick in activity, the report highlights four major trends. First, consumers are concerned about the quality of care delivered at retail clinics. According to the survey, 47% of respondents were not confident in the quality of care, and another 10% of respondents were not aware that retail clinics accepted major health care insurance carriers.
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Next, retail healthcare providers need to improve technology adoption. Consumers want to use digital communication tools with only 16% of respondents say that paper signage is valuable in healthcare interactions. And only 38% recall the availability of a mobile app. However, there is a disconnect over technology. 93% of providers reported being happy with their mobile app.
Those issues aside, there is opportunity in this market. The report found that most, 77%, of consumers require regular pharmacy visits for prescription refills, and half of those respondents said that the were be willing to use retail healthcare for other services such as preventive care, primary care and physical exams.
Indeed, the report notes that retailers are leaving money on the table. Only 21% of healthcare providers are using communication tools to work with clients and 70% of providers are not guiding clients to in-store products, which could ultimately drive revenue and lead to larger transactions.
Walgreens is already making a significant investment to capture growing demand. Walgreens, Boots Alliance and VillageMD recently expanded their partnership with a $1 billion deal to open 500 to 700 primary care offices over the next five years. These locations will be located in 30 US markets and half will be located in underserved communities. The clinics will range between 3,330 square feet each and 9,000 square feet. As part of the deal, Walgreens will invest $1 billion in equity and convertible debt in VillageMD over the next three years, including a $250 million equity investment to be completed today.
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Kelsi Maree Borland
