CVS to Gain 80 Retail Clinic Locations In Target Deal

CVS to Gain 80 Retail Clinic Locations In Target Deal

In addition to boosting its core drugstore business, CVS is about to cement its position as the largest retail clinic operator.  CVS said it will gain 80 retail health clinic locations as part of a proposed deal with Target announced June 15th.   This might be an underreported detail in a deal of this size, but we think it’s significant.   CVS has made it a goal to expand its provision of health services and to benefit from the indirect revenue clinics provide to the pharmacy operation.   They now get new locations without the build-out, they get a new venue for new clinics, and they have a chance to turn the Target clinic operation into a consistent national brand that consumers can identify.

Our latest report is Retail Clinics 2015 ( http://www.kaloramainformation.com/redirect.asp?progid=87402&productid=8792050).

Woonsocket, R.I. - based CVS, the largest provider of prescription drugs in the U.S., announced it would be taking over 1,660 drugstores inside Target locations, which will be designated as “CVS pharmacy” locales.    The company made a point of announcing that the deal also includes Target’s nearly 80 medical clinics, which will be changed over to CVS’s MinuteClinic banner.  Target will build another 20 in Target locations.   That’s significant as well as it indicates that they aren’t just taking these on because they are there.  The company plans to operate 1,500 clinics by 2017.   

Competitors will have a hard time catching up. Target was not a large operator but one with a longer history.  The deal will provide CVS with more than half of the 1 billion-dollar retail clinic services market.    Walgreens, The Little Clinic, RediClinic also maintain locations, and there are many other small providers.  

Convenience clinics, also known as retail health clinics, are typically located in stores, malls and other retail locations, making them convenient for shoppers. They share basic characteristics. Clinics are usually staffed by nurses or nurse practitioners and feature a high transparency of pricing, with rates often prominently displayed. Low cost services are enabled by high throughput and cost containment, with broad purchasing power across many locations. Increasingly clinics accept payment not just through insurance but by cash, check or credit card as well.

 Kalorama Information’s report, Retail Clinics 2015: Growth of Stores, Consumer Opinion, Leading Competitors, Sales of Products to Clinics (Diagnostic Tests, Pharmaceuticals, Vaccines), Clinic Sales Forecasts and Trends contains more results on reasons for visits and patient satisfaction with retail clinics. In addition, it provides store clinic numbers, how much revenue store clinics make, and trend information. The report can be found at , http://www.kaloramainformation.com/redirect.asp?progid=87402&productid=8792050.