Retail Clinics Attract Investors

HealthLeaders Media Finance
8/4/2008

Byline Article From Lang Aston, Managing Director

Consumerism in healthcare has given rise to retail-based convenience health clinics throughout the United States. The concept has grown from an industry anomaly to a disruptive innovation, starting with only 60 stores in 2000 to nearly 2,000 clinics projected by the end of 2008. These clinics are clamoring for a piece of industry revenues, which are expected to reach nearly $4.5 billion by 2011, according to a new report from Kalorama Information. This tremendous revenue stream has lured new market entrants while invigorating clinic expansion efforts in grocery stores, big box retailers and other mass merchandisers. Big pharmacy retailers such as CVS/Caremark, which bought Minute Clinic, and Walgreen’s, which purchased Take Care Clinics, have already acquired clinic upstarts. If these deals are any indication, stand-alone retail clinic chains could become prime acquisition targets in 2008-2009. Expect major food/pharmacy retailers as well as private equity firms to participate in the bidding.

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