A focus on payment models could help retailers succeed in healthcare

Big box retail stores, supermarkets and retail pharmacies often offer access to in-store medical clinics. About 20 percent of consumers surveyed by HRI said that in the past several years, they have been to one of these clinics for care.

Health Retailers have an opportunity to use their consumer financial savvy to bring patients into the fold and keep them coming back, using reward programs and other strategies.

The background

• Health retailers use their vast network of store locations, troves of consumer insights, national and global supply chains and national (and sometimes global) branding to attract consumers looking for affordable, convenient care and goods in a system known for its lack of affordability and convenience.
• Companies can offer consumers incentives to obtain care at a clinic, or offer subscription-type services to keep consumers coming back on a regular basis.
• Eighty-five percent of consumers surveyed by HRI said that they would be very or somewhat likely to take advantage of a service that would allow them to finance the costs of large medical expenses—a service some retailers already provide for their electronics or appliances sold at their stores.

The data

HRI impact analysis

Health Retailers will continue to succeed if they strive to be a one-stop shop for consumers’ retail and health needs, even if reimbursement becomes more challenging. Retailers have a strength that most providers and insurers don’t: their deep understanding of consumer behavior and purchasing patterns, which can be used to anticipate and meet patients’ needs.

Many providers lack key capabilities that many Health Retailers possess, including online bill pay, modern facilities, a social media presence, online scheduling and digital product support. But price is a critical factor. Without consumers’ inherent trust, Health Retailers may have to make it worth their while in the one place that often matters most: their wallets.

Where to read more

For more information on emerging disruption of business models in healthcare, please read HRI's report, The New Health Economy in the age of disruption: Novel combinations attempt to remake the health system.