Feed-back.com: Blog

Distant Rumblings Of A Shakeout…

Announcing its “soon to be released” new study, a brief blurb issued by Corporate Research Group (CRG; New Rochelle NY) suggests there’s going to be a shakeout in the retail clinic market in the next two years. The CRG article is entitled “Retail and Onsite Clinics: Fad or Future?” The news appears be mixed. The industry is “burgeoning” on the one hand and “losing money” on the other.

Clearly, any new business must pay substantial overhead expenses whether customers come through the door or not. Most emerging markets start strong, riding the wave of enthusiasm for a new product or service. Initially, the driving force may be a technological breakthrough or a unique way of doing business. Over time, emerging markets mature, economic and regulatory conditions change, new competitors enter the market, or someone comes up with another innovation. In the case of retail clinics, tighter regulations are likely to be imposed. However, employers and insurers are welcoming the chance to pay less for routine health care services.

One might argue that consolidation is happening already. Monthly tallies compiled by Feedback Research Services’ staff show slight fluctuations in retail clinic numbers and locations. A reasonable conclusion is that managers and owners are paying attention to consumer demand (or lack of it) and revising operations accordingly.