Wednesday, April 11, 2007

Hospital invests further into retail clinics

The Houston Chroincle reports today that Hermann Hospital has invested more deeply into retail clinic company RediClinic, which operates clinics inside HEB stores here in Texas.

The hospital believes retail clinics can be profitable because patients would be sent with conditions too complicated to be dealt by NPs in a retail setting or referred to Hermann doctors for long-term management.

Since RediClinic got its start about two years ago, Memorial Hermann-affiliated doctors have provided oversight for the nurse practitioners who provide care inside retail stores, said Mischer, who previously served as the chief executive of Hermann Hospital for two years.

"Their taking an economic interest in the company evolved over that period of time," he said.
Memorial Hermann Chief Executive Dan Wolterman said Tuesday that the foot traffic into the retail stores was part of what attracted him to RediClinic.

I believe this is really smart of Hermann.

And it is completely opposite of the reaction of a group of tired pediatric residents who last fall complained about these clinics and how they would force many of them to keep longer hours or odd hours and compete with them on price. I sympathize with the pediatricians and their concern over how retail clinics would affect their careers.

But I cannot sympathize with the pediatric residents' position. These retail clinics aren't a bad thing at all if operated properly.

They promote preventive care, which means people who go there will less likely become acute sick. And if retail clinics succeed on a large scale, this will relieve pressure off overworked and understaffed ERs. Furthermore this will save taxpayer funds which could be used to provide other services or could be returned to taxpayers. So retail clinics will make possible preventive care which will save society money. Seems like a win-win situation for the consumer-patient, the hospital and the taxpayer.

(I wrote about the growing industry twice already, once in April and once again in September.)

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1 Comments:

At 5/18/2007, Blogger Chris said...

This is revolutionary - because the retail format is the future of general practice and preventive, every-day medicine.

How many people go to their central-business-district, far-away, high-rise, expensive-parking, bad-service medical center on a daily basis -- for their laundry detergent? Yeah, none, I thought so.

But if you have a nagging symptom, you're a lot more likely to pop in for a $20 consultation on your way out of Wal-Mart or HEB than you are to consult the doctor a 40-minute drive into the city core in traffic and pay $120.

Prospective doctors whining about longer hours for these retail doctor jobs should look in the mirror - and ask themselves if they prefer the convenience and fast service of corner "big-box" drugstores or whether they'd rather go back to Soviet-style centralized poverty?

Our health care system is crippled from the neck down - by politicians thinking from the neck down and bureaucratizing and de-profitizing the whole industry. Thank goodness Hermann Memorial can still (legally) invest in for-profit clinic concepts like RediClinic.

Because it is the ability to invest in different styles of business (business models) that enables society to find the socially optimal solution. If a few clinics go out of business, it's a private investor who loses, while the public wins - by the better model proliferating and serving everyone.

If it's HillaryCare, then we all get more Walter Reeds and other excuses for health care that would never survive market competition - because unlike at Walter Reed, where soldiers were forced to receive only the health care the government told them was available, in a free market, bad providers lose customers and are closed, while good ones thrive and reproduce.

Thank goodness that in Texas we have a (relatively) thriving industry of physician-owned specialty hospitals and innovative private clinics, unlike in more regulated states.

 

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