Use And Costs Of Care In Retail Clinics Versus Traditional Care Sites Although the costs of care at retail clinics are lower than in physicians’ offices, overall care costs could rise from induced demand. by Marcus Thygeson, Krista A. Van Vorst, Michael V. Maciosek, and Leif Solberg ABSTRACT: Retail clinics have generated much interest, promising convenient, lower-cost service for the treatment of minor conditions than conventional care sites can offer. Using health plan claims data, we describe utilization trends, patient mix, and cost per episode of care for the five conditions most frequently treated at a retail clinic chain in the Minneapo- lis–St. Paul area, as compared with other care settings. Retail clinic use for these condi- tions is increasing at about 3 percent per year and offers savings of $50–$55 per episode. However, it accounts for only 6 percent of such episodes, and the impact on overall cost and quality remains undetermined. [Health Affairs 27, no. 5 (2008): 1283–1292; 10.1377/hlthaff.27.5.1283] S o-called retail or in-store clinics have been proliferating at a rapid rate after being developed by QuickMedx in 2000. 1 These clinics typi- cally offer brief visits with an advanced-practice provider (physician assis- tant or nurse practitioner) and are designed to provide immunizations and care for simple illnesses in a kiosk in a retail store. In 2006 there were about 150 such clin- ics, but the California HealthCare Foundation expects thousands in the near fu- ture, now that Walmart and other large retailers are sponsoring them. 2 Virtues attributed to retail clinics include convenience, easy access, quick ser- vice, lower cost, and transparent pricing (most post a list of services with prices). In addition, most retail clinics are located in retail settings that include a phar- macy, which facilitates patients’ getting medications quickly after their visit. Physician groups have expressed concerns about possible low quality of care; lack of follow-up and continuity with other medical care needs; and failure to take Use & Costs HEALTH AFFAIRS ~ Volume 27, Number 5 1283 DOI 10.1377/hlthaff.27.5.1283 ©2008 Project HOPE–The People-to-People Health Foundation, Inc. The authors are all affiliated with HealthPartners in Minneapolis, Minnesota. Marcus Thygeson (Marcus.X.Thygeson@HealthPartners.com) is vice president and medical director, Consumer Health Solutions. Krista Van Vorst is a health informatics consultant. Michael Maciosek is a research investigator at HealthPartners Research Foundation. Leif Solberg is associate medical director of the foundation.