CVS MinuteClinics are walk-in clinics that provide basic medical services on a single-visit basis.<\/p>\n
The business model of CVS MinuteClinics is predicated on delivery of 1) convenient, 2) high quality, and 3) cost-effective<\/b>[i]<\/b> healthcare services outside of the traditional healthcare system. MinuteClinics can treat minor illnesses and injuries, monitor chronic health conditions, and can also administer vaccinations and physicals. Each clinic has a limited of menu of services it provides, with prices available online[ii]. The MinuteClinic value proposition stands in contrast to that of traditional clinics or emergency rooms, where patients may face long wait times and receive inefficient or expensive care. However, it seeks to complement rather than completely exclude the traditional healthcare system. This business model is monetized through payments made by patients or insurers, although CVS\u2019s Pharmacy division reaps indirect financial benefits from the clinic system as well.<\/p>\n
Financial and operations results emerging from this model have been notable. \u00a0A 2013 study in the American Journal of Managed Care<\/i> showed that individuals using retail clinics had total lower costs of care, lower medical expenses related to physicians\u2019 visits and hospital inpatient stays, and fewer emergency department visits.[iii] \u00a0While CVS does not break out specific sales figures for its MinuteClinic business, revenues were up 13% in 3Q2015 vs. 3Q2014, with similar and higher growth percentages reported in prior quarters[iv]. \u00a0As of October 2015, there were 1,020 MinuteClinics in 32 states and Washington DCiv and 25 million patient visits were conducted from 2000\u20132015.[v]<\/p>\n
The company\u2019s operating model successfully supports its value proposition in several key ways:<\/p>\n
Despite MinuteClinic\u2019s apparent expansion success, outstanding questions ultimately remain about these clinics\u2019 long term profitability and ability to be perceived as high quality, go-to institutions.<\/p>\n
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CVS MinuteClinics are walk-in clinics that provide basic medical services on a single-visit basis. The business model of CVS MinuteClinics is predicated on delivery of 1) convenient, 2) high quality, and 3) cost-effective[i] healthcare services outside of the traditional healthcare […]<\/p>\n","protected":false},"author":1220,"featured_media":4954,"comment_status":"open","ping_status":"closed","template":"","categories":[],"class_list":["post-4944","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"\n