Retail Healthcare Transforms as Patients Seek Alternative Healthcare Options Driving Growth Opportunities for Traditional and Non-Traditional Care Givers
MOUNTAIN VIEW, California, Jun 07, 2016 (PR Newswire Europe via COMTEX) — Convenience and cost advantages for patients ensure rapid adoption of the retail care model, says Frost & Sullivan Transformational Health program
MOUNTAIN VIEW, California, June 7, 2016 /PRNewswire/ — As patients begin to view healthcare through a consumer’s lens; seeking fast, cost-effective and convenient care options, the retail healthcare model is gaining popularity. In fact, the growing number of retail clinics is expected to transform primary healthcare and touch 30 million patients globally by 2022. The convenience and cost advantages for patients, along with lucrative opportunities to capture new revenue streams for care providers, ensure the rapid uptake of the retail care model. Participants in the healthcare value chain must assess the threat and opportunities posed by this shift and re-strategize for optimal growth.
New analysis from Frost & Sullivan, Future of Retail Healthcare Delivery [http://utm.io/256518] (http://utm.io/256518 [http://utm.io/256518]), finds the global retail care market earned revenue of $1.35 billion in 2015 and estimates this to reach $4 billion in 2022. Retail clinics address minor illnesses and are located in retail environments such as pharmacies, grocery chains, supermarkets or departmental stores, and function for longer hours than traditional clinics.
Rising healthcare expenditures and lack of access to primary care support the growth of the retail care market. In most developing countries, health insurance penetration is low and the out-of-pocket spending pinches patients. For those with health insurance, rising premiums and higher deductibles are a concern. Even in mature markets like the U.S., shortage of primary care physicians is resulting in longer wait times.
“For many patients retail clinics are the second choice and are used on weekends or after-hours on weekdays, limiting patient volumes,” noted Frost & Sullivan Transformational Health Research Analyst Siddharth Shah. “Furthermore, regulations in all countries have yet to mature; applying current regulations to a disruptive trend is inhibiting growth.”
South Africa, for example, does not permit a new pharmacy within 500 meters of an existing one, stifling competition and opportunities for new in-pharmacy clinics. Within the U.S. regulations vary depending on the state, in some circumstances opening retail clinics is financially impractical. The largest U.S. chain has retail clinics in only 33 states.
“Future growth of retail clinics is connected to the success of initiatives aimed at patient satisfaction,” said Shah. “With increasing experience, retail players will expand their services portfolio and experiment with novel methods, such as product-service bundling, telemedicine integration and point of care technologies to enhance patient experience.”
Retail healthcare is here to stay; partnerships with providers and physician groups to expand the continuum of care and improve patient outcomes will be crucial for a deeper integration of retail clinics in the healthcare ecosystem.
Future of Retail Healthcare Delivery is part of the Advanced Medical Technologies (http://ww2.frost.com/research/industry/healthcare/advanced-medical-technologies [http://ww2.frost.com/research/industry/healthcare/advanced-medical-technologies]) Growth Partnership Service program. Frost & Sullivan’s related studies include: The Transformation of the American Hospital: 2015-2020, Analysis of the US and Western European Atrial Fibrillation Market, 2016 Global Outlook for the Healthcare Industry, Analysis of the U.S. Breast Imaging Systems Market, The North American Patient Handling Systems Market, Development of Value-based Imaging, Artificial Intelligence in Healthcare, among others. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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