/ en Fri, 25 Apr 2025 16:12:10 -0500 Tue, 13 Aug 24 06:15:00 -0500 /aha-center-health-innovation-market-scan/2024-08-13-4-ways-prep-where-health-care-will-be-delivered-2035 <div class="container"><div class="row"><div class="col-md-8"><p><img src="/sites/default/files/inline-images/4-Ways-to-Prep-for-Where-Health-Care-Will-Be-Delivered-in-2035.jpg" data-entity-uuid="c6eb547b-e1af-44ba-b557-0fbc70b6f189" data-entity-type="file" alt="4 Ways to Prep for Where Health Care Will Be Delivered in 2035. A hospital executive looks through a telescope to see what 2035 has in store for health care." width="100%" height="100%"></p><p>Big changes are coming to health care over the next decade, with technology innovation supporting significant shifts that will necessitate operational changes for providers.</p><p>Technology will continue to get faster, cheaper and smarter. So-called <a href="https://www.graphcore.ai/posts/graphcore-announces-roadmap-to-ultra-intelligence-ai-supercomputer" target="_blank" title="Graphcore: Graphcore Announces Roadmap to Ultra Intelligence AI Supercomputer">“ultra intelligence”</a> artificial intelligence (AI) supercomputers this year are expected to possess four times more parametric capacity than the human brain and be nearly 10 times faster in the number of computations that can be run every second.</p><p>As for how the field will be impacted by the rapidly evolving tech landscape, the consultancy Oliver Wyman recently published an <a href="https://www.oliverwyman.com/our-expertise/insights/2023/dec/fostering-change-in-where-and-how-care-is-delivered.html" target="_blank" title="Oliver Wyman: Fostering Change in Where and How Care Is Delivered">analysis</a> as a follow-up to its <a href="https://www.oliverwyman.com/our-expertise/insights/2023/sep/designing-for-2035.html" target="_blank" title="Oliver Wyman: Designing a Healthcare System for the Next Decade">Designing for 2035 report</a>.</p><h2><span>Forecasting for 2035</span></h2><p>Among the authors’ projections:</p><ul><li><strong>Health care costs will continue to come down</strong> even as workforce expenses and the actionability of data collected remain challenges.</li><li>By 2035, <strong>comprehensive genome sequencing</strong> will be a standard part of medical evaluations, providing insights into an individual’s predisposition to diseases and guiding personalized treatment plans.</li><li><strong>Advanced diagnostic capabilities will expand.</strong> Point-of-care devices and at-home testing kits will provide quick and accurate results for a wide range of conditions, enabling early detection and timely treatment.</li><li>Pharmaceutical companies will <strong>use predictive models to design and test potential drugs</strong> in a matter of days or weeks rather than the years it now takes. Doing a better job of incorporating data into clinical workflows will help ease the burden and burnout that clinicians currently feel from cumbersome technology systems.</li></ul><p>The overall increase in information on outcomes and practice patterns, along with more effective dissemination of data, will enable faster and more accurate treatment decisions. Current struggles with interoperability will be overcome, and data will follow patients in a more efficient manner.</p><h2><span>4 Takeaways for Provider Organizations</span></h2><h3><span>1</span> <span>|</span> Focus on value-added clinical tasks.</h3><p>Some current technological advances already are providing administrative support. Further improvements will come from modifying ChatGPT-like solutions for creating more efficiencies of back-office and other administrative functions. Additionally, AI will support and evolve work completed by nurses, case managers and social workers. Smart implementation of AI systems has the potential to fully automate some tasks, including prior authorizations, care planning and consultations triggered by assessments.</p><h4><span>2035 Outlook</span></h4><p>Keep an eye on robotic medication administration. These systems can identify routine drugs that serve select patients. While these advances significantly will improve everyday efficiency, the rate of adoption will be limited by cost and resource shortages, the report notes. Once this barrier is overcome, hospitals can implement fully baked solutions to optimize operations.</p><h3><span>2</span> <span>|</span> Redistribute care to optimal settings.</h3><p>Hospitals have been important sites of care for two main reasons: economies of scale — reducing the unit cost of care delivery through asset utilization and economies of scope — and using various capabilities and expertise to bend the cost curve and respond to patient variance. But as care delivery has advanced, the impact of economies of scale and scope has diminished. Scale no longer requires being everything to everyone. Likewise, scope needs are lessened through the ability to manage risk and reliance on more precise diagnoses.</p><h4><span>2035 Outlook</span></h4><p>The current inpatient model is capital- and staff-intensive and therefore expensive. It also is not always the safest or most consumer-friendly place to be treated, the report states. Patient preferences and logistics may make being at home the optimal site of care and the authors predict care settings will shift dramatically over the next decade.</p><h3><span>3</span> <span>|</span> Move care from inpatient to outpatient where appropriate.</h3><p>Coming tech advances will lessen the need for inpatient admissions for certain conditions and surgical procedures. Shifts in care protocols, including minimally invasive procedures and improved rehabilitation techniques, will accelerate this transition.</p><h4><span>2035 Outlook</span></h4><p>Expect retail clinic settings to have an impact in this area with their easy accessibility, lower cost structure and a strong focus on preventive care.</p><h3><span>4</span> <span>|</span> Explore moving some inpatient services to home care.</h3><p>The most disruptive transition between now and 2035 could come in this area. The authors project that 64% of inpatient admissions could be moved to the home by 2035, enabled by both improved therapeutics and more effective virtual care.</p><h4><span>2035 Outlook</span></h4><p>At-home care has limitations. Shifting out of an inpatient setting is not feasible for high-risk situations or overly invasive procedures. And not everything that is available to move to the home should, the report states.</p><p>The overall infrastructure still isn’t robust enough to match the potential transition. Only about 40% of U.S. homes were considered to have the most basic aging-ready features, according to a <a href="https://www.census.gov/newsroom/press-releases/2023/aging-ready-homes.html#:~:text=Highlights%3A,aging%2Dready%20homes." target="_blank" title="United States Census Bureau: Census Bureau Releases New Report on Aging-Ready Homes">2023 Census Bureau report</a>, and large areas of rural America, as well as some inner cities, still lack <a href="https://www.census.gov/newsroom/press-releases/2024/computer-internet-use-2021.html" target="_blank" title="United" states census computer and internet use in the united>access to broadband</a>. Still, significant growth could occur in the home care setting.</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } Tue, 13 Aug 2024 06:15:00 -0500 Retail Strategies /aha-center-health-innovation-market-scan/2024-03-12-4-insights-walgreens-health-strategy-review <div class="container"><div class="row"><div class="col-md-8"><p><img src="/sites/default/files/inline-images/4-Insights-into-Walgreens-Health-Strategy-Review.png" data-entity-uuid="0f17d05c-b3f7-4e8f-8a7b-7b9690746bea" data-entity-type="file" alt="4 Insights into Walgreens’ Health Strategy Review. A soccer field chalkboard with the Walgreens logo in the center. Four hands with blue chalk are drawing up a strategy on the board." width="100%" height="800"></p><p>Walgreens recently has undergone significant leadership changes while facing financial challenges on several fronts. The pharmacy chain operator last month was replaced on the Dow Jones Industrial Average by Amazon and halved its dividend two months earlier to conserve cash as it tries to grow its business.</p><p>In the roughly four months since new CEO Tim Wentworth took over, analysts have been trying to determine how the company will adjust its long-term vision — particularly since some of its huge investments to grow its health care business have yet to deliver the intended results.</p><p>For anyone expecting a major rebranding of the company or a fundamentally new direction in its health care operations, Wentworth essentially had two words to say about it during an <a href="https://seekingalpha.com/article/4675736-walgreens-boots-alliance-inc-wba-presents-44th-annual-td-cowen-healthcare-conference" target="_blank" title="Seeking Alpha: Walgreens Biooks Alliance, Inc. (WBA) Presents 44th Annual TD Cowen Healthcare Conference (Transcript)">interview</a> at the recent TD Cowen Health Care Conference: “Forget it.”</p><p>Instead, Wentworth said he and the board will meet in April to conduct a strategic review of Walgreens’ retail, pharmacy and health care business portfolio and to develop a road map for the future. By year-end we should have a clearer picture on how Walgreens will evolve, but Wentworth gave some hints about potential areas of change.</p><h2><span>4 Takeaways on Walgreens’ Future Health Care Direction</span></h2><h3><span>1</span> <span>|</span> Relationship-building through the pharmacy will receive greater attention.</h3><p>Walgreens’ experience in administering vaccinations to scores of customers convinced Wentworth that pharmacist trust can be leveraged further in other ways on behalf of payers to drive engagement and create value.</p><h4>Takeaway</h4><p>When the company announced its $1 billion cost-cutting initiative last fall, Walgreens stated that many of the cuts in 2024 would come from retail pharmacy operations. It remains to be seen how this fits alongside the goal of expanding the role of pharmacists in leveraging trusting relationships with customers.</p><h3><span>2</span> <span>|</span> Retail stores will remain central to Walgreens’ strategy.</h3><p>Even as it continues to close some of its 8,600 retail outlets to reduce costs, Walgreens will be focused on getting its footprint right, Wentworth said. The emphasis will be on what the organization should look like in five years and then reverse-engineer how the footprint needs to change.</p><h4>Takeaway</h4><p>Determining which locations will deliver incremental health services and which will be more focused on community pharmacy services will be critical in this process. In talks with its board, Wentworth said the company needs to be clear about its strategy for the front (retail) and the back of the stores (pharmacy and health care).</p><h3><span>3</span> <span>|</span> Getting board alignment on health care assets will be critical.</h3><p>As part of its review with the board, company leaders will examine Walgreens’ health care assets, including: primary care provider VillageMD; CareCentrix, a post-acute and home care provider; Summit Health/CityMD, a provider of primary, specialty and urgent care; and Shields Health, a specialty pharmacy. The company’s clinical trials division and fulfillment centers also will be scrutinized. This discussion will help shape strategy on how to optimize performance in the markets these companies serve.</p><h4>Takeaway</h4><p>While Walgreens remains committed to these businesses and has a strong belief in their value, the scale of some operations will change and some could end up being moved to different areas of the company. Last fall, VillageMD announced plans to close underperforming locations in five markets, including all 58 in Illinois and Florida, as part of a larger cost-cutting initiative. And reports that Shields Health may be sold are untrue, Wentworth said. Instead, Walgreens will focus on optimizing value from the company.</p><h3><span>4</span> <span>|</span> New pharmacy models will be explored.</h3><p>Earlier this year, Wentworth said the company will examine new pharmacy models as cost-plus drug pricing appears to be gaining momentum. He believes the market, including CVS’ new pharmacy benefit management (PBM) reimbursement model, is responding to what payers want.</p><h4>Takeaway</h4><p>Wentworth is encouraged by a recent willingness among PBMs to change the conversation around not just cost-plus drug pricing models, but also to other services that companies like Walgreens can provide to create value for PBMs and payers and that can be bundled. The examples of providing vaccinations, tests and other services demonstrate that retailers can provide these services and get paid a fair fee without “cross-subsidization that distorts the economics for us or the marketplace,” he said.</p><h2><span>Learn More</span></h2><p>For a deeper dive into how companies like Walgreens, Amazon, CVS Health and others plan to transform health care this year, read Market Scan’s <a href="/aha-center-health-innovation-market-scan/2024-02-19-special-report-how-health-care-disruptors-will-transform-field" target="_blank" title="AHA2024 Disruption Report cover Special Report: How Health Care Disruptors will Transform the Field in 2024">2024 Health Care Disruption Outlook</a>.</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } Tue, 12 Mar 2024 06:15:00 -0500 Retail Strategies /aha-center-health-innovation-market-scan/2024-02-19-special-report-how-health-care-disruptors-will-transform-field <div class="container"> /* center_body */ .center_body { /*margin-top:50px;*/ margin-bottom: 50px; } .center_body h3 {} .center_body p { font-size: 16px } p.center_Intro { color: #002855; line-height: 1.2em; font-size: 30px; margin: 10px 0 25px 0; font-weight: 700; font-size: 2em; } @media (max-width:768px) { p.center_Intro { line-height: 1.2em; font-size: 23px; font-size: 1.45em; } } .center_body .center_Lead { color: #63666A; font-weight: 300; line-height: 1.4; font-size: 21px; } /* center_body // */ <div class="row center_body"><div class="col-md-12"><p class="center_Intro"><a href="/center/form/innovation-subscription">AHA Market Scan</a> special report explores which companies aim to deliver transformational change in 2024.</p></div><div class="col-md-8"><p class="center_Lead">Disruptive competitors surround hospitals and health systems. Many of these competitors are not other hospitals. Today, they are well-financed, long-established retail pharmacies, tech companies, online mega-retailers and payers.</p><p class="center_Lead">These competitors make up a mosaic of familiar names to health care consumers: Amazon, CVS Health, Walgreens, Walmart, UnitedHealth Group/Optum, Microsoft, Google and others. Here’s where these companies have been last year and where they may be headed in 2024.</p>Download the Market Scan Buzz report for a deep dive on what’s ahead for:</p> <ul> <li><a href="/">Amazon</a></li> <li><a href="/">CVS Health</a></li> <li><a href="/">UnitedHealth Group (Optum and UnitedHealthcare)</a></li> <li><a href="/">Walgreens Boots Alliance</a></li> <li><a href="/">Walmart</a></li> <li><a href="/">Apple</a></li> <li><a href="/">Google</a></li> </ul>--> .center_callout_3ul{ margin-top:50px; background-color:#b9d9eb66; margin-bottom:25px; } .center_callout_3ul h3{ font-size: 30px; } .center_callout_3ul ul { list-style: none; /* Remove default bullets */ padding-left: 30px; margin-top:15px; margin-bottom: 25px; padding-right:15px; } .center_callout_3ul ul li { margin-bottom: 7px; line-height: 1.5em; padding-left: 23px; text-indent: -23px; font-size:16px; } .center_callout_3ul ul li::before { content: " "; font-size: 1em; margin-right: 5px; display: inline-block; height: 12px; background-color: #d50032; width: 12px; position: relative; top: 0px; } .center_callout_3ul ul li h3{ display:inline-block; display: initial; top: 4px; position: relative; left: 15px; font-size:23px; } <div class="container-fluid col-sm-10 col-sm-offset-1 center_callout_3ul"><h2>Deep Dive On What’s Ahead For:</h2><ul><li><h3><a href="/system/files/media/file/2024/02/2024-Health-Care-Disruption-Outlook.pdf#page=3" target="_blank">Amazon</a></h3></li><li><h3><a href="/system/files/media/file/2024/02/2024-Health-Care-Disruption-Outlook.pdf#page=4" target="_blank">CVS Health</a></h3></li><li><h3><a href="/system/files/media/file/2024/02/2024-Health-Care-Disruption-Outlook.pdf#page=5" target="_blank">UnitedHealth Group/Optum</a></h3></li><li><h3><a href="/system/files/media/file/2024/02/2024-Health-Care-Disruption-Outlook.pdf#page=6" target="_blank">Walgreens Boots Alliance</a></h3></li><li><h3><a href="/system/files/media/file/2024/02/2024-Health-Care-Disruption-Outlook.pdf#page=7" target="_blank">Walmart</a></h3></li><li><h3><a href="/system/files/media/file/2024/02/2024-Health-Care-Disruption-Outlook.pdf#page=9" target="_blank">Google Health</a></h3></li><li><h3><a href="/system/files/media/file/2024/02/2024-Health-Care-Disruption-Outlook.pdf#page=10" target="_blank">Microsoft</a></h3></li></ul></div></div><div class="col-md-4 col-sm-12"><a href="/system/files/media/file/2024/02/2024-Health-Care-Disruption-Outlook.pdf" title="Download, Special Report: 2024 Health Care Disruption Outlook" target="_blank"><img src="/sites/default/files/2024-02/2024_Disruption_Report_cover_700x541.jpg" alt="Special Report: 2024 Health Care Disruption Outlook" width="100%"></a><p><br><a class="btn btn-primary" href="/system/files/media/file/2024/02/2024-Health-Care-Disruption-Outlook.pdf" target="_blank" title="Download, Special Report: 2024 Health Care Disruption Outlook" rel="noopener nofollow">Download the Special Report: 2024 Health Care Disruption Outlook</a></p><div><a href="/center/form/innovation-subscription" title="Weekly Email Updates: Stay in the loop with Market Scan - Subscribe Today"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" alt="Weekly Email Updates: Stay in the loop with Market Scan - Subscribe Today"> </a></div></div></div><div class="row y-sections"><div class="col-md-12"><h2>More Market Scan Articles</h2></div> .y-sections{ margin-top:50px; } .y-sections .y-padding { padding: 10px; margin: 15px 0; } .y-sections h2:nth-child(1) { text-align: left; margin: 0px; } .y-sections h4 { color: #9d2235; font-size: ; } .y-padding img { -webkit-box-shadow: -13px 13px 10px -7px rgba(99, 102, 106, 0.66); -moz-box-shadow: -13px 13px 10px -7px rgba(99, 102, 106, 0.66); box-shadow: -13px 13px 10px -7px rgba(99, 102, 106, 0.66); } .y-lock::before { background: url("/sites/default/files/2018-11/lock-img.gif") no-repeat top left; background-size: 20px 20px; display: inline-block; content: ""; width: 20px; height: 20px; position: relative; top: 0px; left: 0px; margin-right: 10px; } .y-nolock { padding: 4px; } .y-resources { margin: 25px 0; padding-bottom: 15px; } .y-resources h4 { color: #9d2235; font-size: ; } .y-resources h4 span { color: #003087; } .bootnon-margin { padding: 0px !important; } .y-resources a.y-link { color: #9d2235; font-weight: 700; } .y-resources img { border-radius: 50%; } <div class="row y-sections"><div class="col-md-3"><div class="y-padding"><a href="/aha-center-health-innovation-market-scan/2024-01-23-7-innovative-devices-ces-2024-could-reshape-patient-self-care" target="_blank"><img src="/sites/default/files/2024-02/2024_CES_Conference-700x532.jpg" alt="xxxxxxxxxx"></a><h3><a href="/aha-center-health-innovation-market-scan/2024-01-23-7-innovative-devices-ces-2024-could-reshape-patient-self-care" target="_blank">7 innovative devices from CES 2024 could reshape patient self-care</a></h3><p>The recent CES 2024 show (formerly the Consumer Electronics Show) produced a number of health care-related, attention-getting devices.</p></div></div><div class="col-md-3"><div class="y-padding"><a href="/aha-center-health-innovation-market-scan/2024-01-16-takeaways-3-big-disruptors-jpm-healthcare-2024" target="_blank"><img src="/sites/default/files/2024-02/2024_JPM_Conference700x532.jpg" alt="xxxxxxxxxx"></a><h3><a href="/aha-center-health-innovation-market-scan/2024-01-16-takeaways-3-big-disruptors-jpm-healthcare-2024" target="_blank">Takeaways from 3 big disruptors at JPM Healthcare 2024</a></h3><p>Health care executives, retail health providers and investors came together recently to share insights and outlooks at the 2024 J.P. Morgan Healthcare Conference.</p></div></div><div class="col-md-3"><div class="y-padding"><a href="/aha-center-health-innovation-market-scan/2023-11-21-amazons-one-medical-ramps-its-expansion-primary-care" target="_blank"><img src="/sites/default/files/2024-02/Amazon_OneMedical_opening-700x532.jpg" alt="xxxxxxxxxx"></a><h3><a href="/aha-center-health-innovation-market-scan/2023-11-21-amazons-one-medical-ramps-its-expansion-primary-care" target="_blank">Amazon’s One Medical ramps up its expansion in primary care</a></h3><p>Amazon’s One Medical membership-based primary care unit provides on-demand 24/7 access to telehealth services and in-person care continues to report growth.</p></div></div><div class="col-md-3"><div class="y-padding"><a href="/aha-center-health-innovation-market-scan/2023-11-07-vha-shark-tank-competition-generates-innovative-health-care-solutions" target="_blank"><img src="/sites/default/files/2024-02/VA_Shark_Tank3-700x532.jpg" alt="xxxxxxxxxx"></a><h3><a href="/aha-center-health-innovation-market-scan/2023-11-07-vha-shark-tank-competition-generates-innovative-health-care-solutions" target="_blank">VHA Shark Tank Competition generates innovative health care solutions</a></h3><p>Improving response to sepsis, reducing ED visits, standardizing communication in the OR and streamlining patient alerts were among the winners.</p></div></div></div></div></div> Tue, 20 Feb 2024 06:15:00 -0600 Retail Strategies /aha-center-health-innovation-market-scan/2023-05-30-retail-clinics-target-chronic-diseases <div class="container"> <div class="row"> <div class="col-md-8"> <p><img alt="Retail Clinics Target Chronic Diseases. A clinician in scrubs stands in front of a Clinic: Care Provided by Kaiser Permanente sign while another clinician greets a patient in a waiting room." data-entity-type="file" data-entity-uuid="934ec2cf-bcf3-406c-817b-4c0bfbd8b50e" src="/sites/default/files/inline-images/Retail-Clinics-Target-Chronic-Diseases.png" width="620" height="381"></p> <p>Retail health clinics are growing not only in number but in scope of services delivered. But so far, these outlets primarily are located in higher-income communities ringing urban areas with large populations while rural and underserved communities remain largely out of the picture.</p> <p>And as the need for COVID-19 vaccinations and related services continues to decline, retailers have been broadening their focus on primary care, specifically for those with chronic conditions, notes a recent <a href="https://www.definitivehc.com/resources/research/retailers-healthcare" target="_blank" title="Definitive Healthcare Retailers in healthcare: A catalyst for provider evolution">Definitive Healthcare report</a>.</p> <p>Insurance claims filed by retail clinics over the past five years have doubled and claims data from 2022 indicate that about one in 10 diagnoses at these outlets was related to a chronic condition like diabetes, chronic obstructive pulmonary disease, kidney disease and hypertension, the report states. Definitive Healthcare, which converts data, analytics and expertise into commercial intelligence, used its Atlas All-Payer Claims dataset to understand the types of diseases retail clinics are treating.</p> <h2><span>A Vast Opportunity for Retailers</span></h2> <p>Just how quickly retailers like CVS Health, Kroger, Walgreens and its partner VillageMD and others can grow their presence in these areas and with traditional providers could determine how significant their long-term relationships will be with consumers. The opportunity for retail clinics to become meaningful players in chronic disease is vast, especially as these locations expand their focus from episodic treatment to primary care.</p> <p><a href="https://www.cdc.gov/chronicdisease/resources/infographic/chronic-diseases.htm" target="_blank" title="Centers for Disease Control and Prevention (CDC): Chronic Diseases in America">Centers for Disease Control and Prevention (CDC) data</a> illustrate the opportunity. The CDC reports that more than 60% of Americans are living with a chronic disease and four in 10 Americans have two or more, becoming the leading causes of death and disability and key drivers in the nation’s $4.1 trillion in annual health care costs.</p> <p>What’s driving many patients to retail clinics is predictable: lower cost and greater convenience, the report concludes.</p> <h2><span>Big Retailers Dominate the Market</span></h2> <p>About 85% of retail clinics are owned by large retail chains like CVS, Kroger, Walgreens and Walmart, Definitive Healthcare states. In recent years, however, some hospitals and health systems have entered the retail landscape by partnering with chains, such as Kaiser Permanente’s partnership with Target stores in Southern California.</p> <p><img alt="Percent of retail health clinics by U.S. regions. Southeast: 34.1%. Midwest: 27.7%. Southwest: 14.8%. Northeast: 13.9%. West: 9.5%. Retail clinic volumes grew 200% from 2017 through 2022. Top 5 retail clinic markets based on the number of active clinics: 1. Chicago-Naperville-Elgin, IL-IN-WI: 113 locations; 2. Atlanta-Sandy Springs-Alpharetta, GA: 83 locations; 3. Dallas-Fort Worth-Arlington, TX: 68 locations; 4. Phoenix-Mesa-Chandler, AZ: 66 locations; 5. Houston-The Woodlands-Sugar Land, TX: 59 locations. Sources: Definitive Healthcare's ClinicView (based on # of active retail clinics tracked as of March 31, 2023) and its Atlas All-Payor Claims data (2017-2022)." data-entity-type="file" data-entity-uuid="8d9101fd-11cc-4dad-9c3f-0b6d1b67af26" src="/sites/default/files/inline-images/Percent-of-retail-health-clinics-by-US-regions.png" width="2117" height="2054"></p> <p>Pharmacy giant CVS is by far the biggest player in terms of market share (63%), based on the number of locations. Kroger Health, a division of the supermarket giant The Kroger Co., is the second-largest operator at 12% market share through its Little Clinic business, which it acquired in 2010, and operates more than 220 retail clinics in 35 states. VillageMD, majority-owned by Walgreens, is the third-largest operator with 8% of the market, followed by Advocate Health with 3%.</p> <h2><span>3 Takeaways from the Report</span></h2> <h3><span>1</span> <span>|</span> Be open to partnerships with retailers.</h3> <p>With retail clinics becoming an increasingly popular destination for consumers, it behooves traditional providers to develop a relationship with them, the report suggests, adding that traditional providers have some inherent technology advantages.</p> <h4>Takeaway</h4> <p>Regardless of how a partnership is structured, a robust information technology structure that supports care coordination between partners is essential to success. To ensure consistent care, clinical protocols for conditions treated at retail clinics should be embedded in electronic health record systems, alongside established processes to drive referrals to health system-affiliated primary care physicians.</p> <h3><span>2</span> <span>|</span> Emphasize your commitment to all communities served.</h3> <p>Retail clinics are widespread and easily accessible to large portions of the population, but they do not appear to be improving access to care for underserved populations due to their locations.</p> <h4>Takeaway</h4> <p>Most retail clinics operate in geographic areas with higher median incomes, in part to attract — or respond to demand from — a more affluent patient mix, the report shows, noting that areas with retail clinics tend to have a higher concentration of white residents, fewer Black and Hispanic residents and fewer people living in poverty compared with the national average. Hospitals and health systems, on the other hand, can trumpet their commitment to serving all communities.</p> <h3><span>3</span> <span>|</span> Evaluate health system retail-ownership models.</h3> <p>As hospitals and health systems pursue mergers and acquisitions to strengthen their positions in certain markets, some organizations may want to consider acquiring or starting their own retail clinics, the report suggests. Also, retailers may want to divest some of their retail clinics, as Walgreens did when it shuttered about 160 retail clinics in 2019. The company shifted ownership and operations to several health systems, including Advocate Health in Chicago and Atlanta-based Piedmont Healthcare.</p> <h4>Takeaway</h4> <p>Health care systems have strong local brands, nurse practitioners to staff clinics and physicians for oversight. They also can generate demand within the communities they serve based on trust. Any health system pursuing this strategy should have direct experience in operating a retaillike clinic, such as community primary care clinics or employer work site clinics, the report cautions.</p> </div> <div class="col-md-4"> <p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img alt="AHA Center for Health Innovation logo" data-entity- data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" type="file" class="align-center"></a></p> <a href="/center/form/innovation-subscription"><img alt data-entity-type data-entity-uuid src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png"></a></div> </div> </div> .field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } Tue, 30 May 2023 08:30:41 -0500 Retail Strategies /aha-center-health-innovation-market-scan/2023-04-04-census-bureau-database-provide-better-context-retail-clinics-market <div class="container"> <div class="row"> <div class="col-md-8"> <p><img alt="Census Bureau Database to Provide Better Context on Retail Clinics Market. A map of the United States with a pie graph and a bar graph on top of it." data-entity-type="file" data-entity-uuid="3b3ef2f0-c220-46d5-b87b-4061d5fe2091" src="/sites/default/files/inline-images/Census-Bureau-Database-to-Provide-Better-Context-on-Retail-Clinics-Market.png" width="620" height="381"></p> <p>The rise of retail health clinics (RHCs) has accelerated in recent years, but getting a firm handle on the overall scope of this market has been difficult with so many new locations coming online every year. A <a href="https://www.census.gov/library/stories/2023/03/retail-health-clinics-near-you.html" target="_blank" title="United States Census Bureau: Is There a Retail Health Clinic Near You?">new database</a> created by the U.S. Census Bureau’s Enhancing Health (EHealth) Data Program and the Centers for Disease Control and Prevention’s National Center for Health Statistics (NCHS) aims to bring context to what’s happening in this space.</p> <p>The Linked Retail Health Clinics database, part of the EHealth program, is the first step in a multiphase collaboration to identify RHC locations. The initial report examines data from 2018 to 2020. Among the findings:</p> <ul> <li>More than 2,000 RHCs in the U.S. provided convenient health services inside pharmacies, grocery and supercenter retailers, with about 97% located in metropolitan areas (defined as having at least one urban area with a population of at least 50,000 rather than in densely populated areas).</li> <li>950 of these RHCs are in the South. The South Atlantic region had the largest number of RHCs at 550 locations.</li> <li>NCHS reports that in 2019 one in four children and nearly three in 10 adults visited an RHC or urgent care center.</li> </ul> <p>The database will help develop an understanding of the business characteristics among retailers with RHCs and other sources of health care such as physicians, urgent care centers and emergency departments near RHCs.</p> <p><img alt="Retail health clinics by U.S. Census region, 2018–2020. 2,00+: Number of retail health clinics in the U.S. 950: Number of retail health clinics in the South. 1 in 4: Number of children who visited an RHC or urgent care clinic. 3 in 10: Number of adults who visited an RHC or urgent care clinic. Source: U.S. Census Bureau report, 2023." data-entity-type="file" data-entity-uuid="33994ceb-e4bb-4f61-94ee-7efeb3b4cbb6" src="/sites/default/files/inline-images/Retail-health-clinics-by-US-Census-region-2018-2020.png" width="871" height="844"></p> <p>The actual number of RHCs in the U.S. today is clearly far more than 2,000. A <a href="https://markwideresearch.com/retail-clinics-market/" target="_blank" title="MarkWide Research: Retail Clinics Market Analysis—Industry Size, Share, Research Report, Insights, COVID-19 Impact, Statistics, Trends, Growth and Forecast 2023–2030">MarkWide research report</a> published in December pegged the number at more than 3,000 and noted that between 2023 and 2030 the compound annual growth rate will expand by 9.9%. The rise in the millennial population, the growing number of retail clinics and the rise in the proportion of working women will be key drivers in this growth, the report states.</p> <p>CVS Health alone has more than 930 HealthHub locations in the U.S. Walgreens Boots Alliance, through its investments in and partnership with VillageMD, has about 680 locations in 26 U.S. markets. Other retailers such as Walmart and Rite-Aid also have been actively adding RHCs.</p> </div> <div class="col-md-4"> <p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img alt="AHA Center for Health Innovation logo" data-entity- data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" type="file" class="align-center"></a></p> <a href="/center/form/innovation-subscription"><img alt data-entity-type data-entity-uuid src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png"></a></div> </div> </div> .field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } Tue, 04 Apr 2023 06:00:00 -0500 Retail Strategies /aha-center-health-innovation-market-scan/2022-11-15-how-walgreens-just-became-player-specialty-and-urgent-care <div class="container"> <div class="row"> <div class="col-md-8"> <p><img alt="How Walgreens Just Became a Player in Specialty and Urgent Care. A Walgreens store with the the companies name and logo prominently displayed." data-entity-type="file" data-entity-uuid="30575bc6-ada7-4aca-aae9-0abfde510a76" src="/sites/default/files/inline-images/How-Walgreens-Just-Became-a-Player-in-Specialty-and-Urgent-Care.jpg" width="620" height="381"></p> <p>The recent <a href="https://www.walgreensbootsalliance.com/news-media/press-releases/2022/villagemd-acquires-summit-health-citymd-creating-one-largest" target="_blank" title="Walgreens Boots Alliance: VillageMD Acquires Summit Health-CityMD, Creating One of the Largest Independent Provider Groups in the U.S.">news</a> that Walgreens-backed <a href="https://www.villagemd.com/" target="_blank" title="VillageMD homepage">VillageMD</a> is buying <a href="https://www.summithealth.com/" target="_blank" title="Summit Health homepage">Summit Health-CityMD</a> for $8.9 billion including debt is more than just another example of how the retail health market is consolidating. It’s a sign of how quickly the retail pharmacy giant believes its health care division will become profitable.</p> <p>The nation’s No. 2 U.S. pharmacy chain, which owns a 63% stake in VillageMD, not only will greatly expand its health care market footprint in the acquisition, but the deal also should help Walgreens’ health care business turn a profit by year-end 2023, the company stated.</p> <p>As a result of the transaction, Walgreens Boots Alliance (WBA) expects to raise its adjusted EBITDA from negative $50 million to positive earnings of $25 million by the end of the 2023 fiscal year. Previously, the WBA stated that its health care business would not turn a profit until 2024.</p> <h2>Here is what the transaction will mean to WBA and VillageMD:</h2> <ul> <li>An added 680 provider locations in 26 markets.</li> <li>New or expanded capabilities in offering primary, specialty and urgent care.</li> <li>A multipayer platform that leverages VillageMD’s expertise in value-based care to support and accelerate the transition to more risk-based care.</li> </ul> <h2>The WBA health care operations will include:</h2> <ul> <li>VillageMD, which had 276 clinics in the U.S. in July and plans to have 500 to 700 full-service doctors’ offices within the next five years.</li> <li>Specialty pharmacy company <a href="https://www.shieldshealthsolutions.com/" target="_blank" title="Shields Health Solutions homepage.">Shields Health Solutions</a>.</li> <li>At-home care provider <a href="https://www.carecentrix.com/" target="_blank" title="CareCentrix homepage.">CareCentrix</a> (the closing on this purchase is expected in March 2023), which manages care for 19 million members through 7,400-plus provider locations.</li> </ul> </div> <div class="col-md-4"> <p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img alt="AHA Center for Health Innovation logo" data-entity- data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" type="file" class="align-center"></a></p> <a href="/center/form/innovation-subscription"><img alt data-entity-type data-entity-uuid src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png"></a></div> </div> </div> .field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } Tue, 15 Nov 2022 06:24:54 -0600 Retail Strategies /aha-center-health-innovation-market-scan/2022-11-01-4-takeaways-survey-retail-health-clinics-and-quality <div class="container"> <div class="row"> <div class="col-md-8"> <p><img alt="4 Takeaways from Survey on Retail Health Clinics and Quality. An Asian woman walks down a grocery store aisle with a Quick Clinic sign at the end of the aisle." data-entity-type="file" data-entity-uuid="9e6ccab4-c784-4ca3-bca1-569429fd6741" src="/sites/default/files/inline-images/4-Takeaways-from-Survey-on-Retail-Health-Clinics-and-Quality.jpg" width="525" height="328"></p> <p>The continuing rise of retail health clinics throughout the U.S. has significantly increased convenient access to care for vulnerable populations seeking quick resolutions to common ailments or wanting a COVID-19 vaccination. But how do they stack up against care delivered in primary care practices and facilities managed by hospitals and health systems?</p> <p>More than 70% of health care leaders globally believe the quality of care in retail settings is lower than in primary care practices, according to <a href="https://catalyst.nejm.org/doi/full/10.1056/CAT.22.0312?query=CTOC&cid=DM1565964_Catalyst_Subscriber&bid=1217533739" target="_blank" title="NEJM Catalyst: Retail Health Care Improves Access, but Quality Concerns Remain">survey findings from NEJM Catalyst Insight Council members</a> published in October. Nearly half of 767 respondents (including 513 from the U.S.) also voiced concerns about the difficulty of tracking patients who use retail clinics over time along with challenges in managing continuity of care.</p> <p>Nevertheless, 66% of survey respondents globally say that the pandemic improved patient views on retail clinics.</p> <h2><span>A Wake-Up Call on Convenience and Better Access</span></h2> <p>Interviews that NEJM Catalyst conducted with respondents provided context on these issues, with Dennis Jolley, system vice president of strategy and planning at UW Health in Madison, Wisconsin, noting that the pandemic provided a wake-up call for providers about the need to improve patient access and convenience.</p> <p>Now that the worst of the pandemic appears to be over, patients who used virtual visits or retail clinics are more comfortable with these options because they have experienced them, Jolley said.</p> <p>Respondents’ concerns about quality are likely related to differences between episodic and longitudinal care strategies, Jolley explained. Retail health tends to be episodic while good primary care is more longitudinal.</p> <p>For health systems, the two biggest benefits of owning or partnering in retail care are to improve access to care (cited by 52% of respondents) and meet consumer demand (48%), an indication of the role that retail care is playing in fulfilling unmet patient needs. Another important finding, respondents say that retail care helps meet the needs of vulnerable populations, with two-thirds (67%) reporting that the use of retail health care delivery has increased access for this group.</p> <h2><span>The Continuity of Care Conundrum</span></h2> <p>Providing continuity of care among retail clinics and primary care practices, hospitals or health systems is a key concern for roughly half the U.S. respondents. The two biggest challenges for health systems of owning or partnering in retail care are the difficulties of tracking patients over time and transitions of care, cited by 46% and 50% of the U.S. respondents, respectively.</p> <p>Some are concerned that preventive screenings may not be done when care is episodic and that retail care will erode the continuity of care and increase the total cost of care in the end. David Fairchild, M.D., chief medical officer for MinuteClinic at CVS, challenged this latter notion in an <a href="https://catalyst.nejm.org/doi/full/10.1056/CAT.22.0311" target="_blank" title="NEJM Catalyst: Growing Acceptance of Retail Health Care">analysis of the survey findings</a>.</p> <p>Fairchild says the quality concerns raised by health care leaders are not necessarily unique to retail care and are found throughout health care delivery. He notes that the field still does not have a common way to share medical information due to interoperability issues and myriad different electronic health record systems.</p> <h2><span>Will Providers Build a Retail Presence?</span></h2> <p>Despite the growth of retail health clinics, only 15% of respondents own or have a formal relationship with these outlets; another 10% say their organization is planning an affiliation within the next three years.</p> <p>And in terms of what they view as the greatest outside competitive threat to traditional health care institutions, more than half the respondents (56%) cited direct-to-consumer telemedicine by a wide margin versus 16% for retail clinics and 13% for urgent care clinics.</p> <p>As for how hospitals and health systems can respond to current trends in retail care, U.S. health care leaders offer four insights.</p> <h3><span>INSIGHT 1</span> <span>|</span> Expand primary care access and new modes of delivering treatment.</h3> <p>Statistics show as many as 25% of Americans do not have a primary care provider. Consider providing an additional access point for consumers who do not have a primary care physician. Be prepared to address care coordination, a potential rise in patients with chronic conditions and the ability to make timely referrals to specialists.</p> <h3><span>INSIGHT 2</span> <span>|</span> Uberize care with GPS-enabled smartphones and intelligent navigation to match immediate demand to care coordination.</h3> <p>Traditional care delivery systems need to re-examine access and ways to make it easier for patients to get the care they want when they want it and where, noted one executive. Meet patients where they are — on their mobile devices, at home, at work or on the road.</p> <h3><span>INSIGHT 3</span> <span>|</span> Consider focusing on in-home care.</h3> <p>More than 40% of U.S. respondents say that in-home care will reduce demand for retail care. But as we’ve seen with other retailers getting involved in health care, a growing number are looking to expand operations into home care. Be prepared to differentiate your services.</p> <h3><span>INSIGHT 4</span> <span>|</span> Partner and coexist with retail care.</h3> <p>Traditional practices and organizations often are not nimble enough to meet same-day, urgent care needs for basic acute care like treating strep throat, noted one CMO from a U.S. nonprofit research facility. The flip side: Retail clinics will free up time for primary care physicians to spend on higher-acuity patient issues.</p> </div> <div class="col-md-4"> <p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img alt="AHA Center for Health Innovation logo" data-entity- data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" type="file" class="align-center"></a></p> <a href="/center/form/innovation-subscription"><img alt data-entity-type data-entity-uuid src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png"></a></div> </div> </div> .field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } Tue, 01 Nov 2022 08:38:33 -0500 Retail Strategies /education-events/mastering-access-strategy-prepare-health-cares-future <div class="webreplay"> .webreplay{ border: solid 2px #777; padding: 15px 5px; margin: 0 0 10px 15px; } @media (min-width:360px){ .webreplay{ min-width: 290px; float: right; } } <h2><small>On-demand Webinar</small></h2>   MktoForms2.loadForm("//sponsors.aha.org", "710-ZLL-651", 2071);</div> <div> <p><strong>Mastering an Access Strategy to Prepare for Health Care’s Future </strong><br /> <em>Best Practices Gleaned from the Retail Industry and RWJBarnabas Health </em></p> <p><strong>Thursday, January 27, 2022 </strong><br /> <em>1 - 2 p.m. Eastern; noon - 1 p.m. Central; 10 - 11 a.m. Pacific</em>  </p> <p><br /> Success in the health care field of the future will be all about access — offering convenient points of entry to grow your relationship with consumers over time. Sometimes the point of entry will be a traditional hospital setting. Sometimes it will be a system or partner-owned outpatient clinic. And sometimes it will be virtual care.  <br />  <br /> This presents a challenge for health care providers who are used to managing limited channels. In this webinar, we’ll talk about the challenge, the parallels with the retail industry’s “omnichannel” evolution, and the role that analytics can play in developing a holistic access strategy. You will also hear first-hand insights into how RWJBarnabas Health is approaching this critical process.   <br />  <br /> <strong>Attendees Will Learn:  </strong></p> <ul> <li>The purpose and major components of an access strategy. </li> <li>Best practices for a holistic access strategy by examining the retail industry’s evolution. </li> <li>The role that consumer analytics can play in guiding the strategic planning process. </li> </ul> <p><strong>Speakers: </strong><br />  <br /> Annie Steelman, FACHE <br /> <em>Senior Vice President, System Strategy </em><br /> <strong>RWJBarnabas Health </strong><br /> New Brunswick, N.J. <br />  <br /> Bill Stinneford <br /> <em>Senior Vice President, Strategic Sales </em><br /> <strong>Buxton </strong><br /> Fort Worth, Texas <br />  <br /> Nikki Viner <br /> <em>Vice President, Strategic Accounts </em><br /> <strong>Buxton </strong><br /> Fort Worth, Texas </p> </div> Thu, 04 Nov 2021 12:20:52 -0500 Retail Strategies