Miniclinics: trend, threat, or opportunity? Are you ready to compete with Wal-Mart? How about CVS? Walgreens? Or is there an opportunity to be their partner?

Retailers are entering what I'll call "entry level" primary care in what surely will be one of the more closely watched phenomena in health care. In many markets, major drugstore and grocery chains are establishing miniclinics inside retail pharmacies. The model most are adapting uses a nurse

The move follows earlier strategies of adding more and more convenience aspects to stores through minibanks, dry cleaners, and Starbucks--and now health care. Admittedly, urgent care programs are not new even at retail outlets, but they seem to be attracting renewed interest at the retail chain levels for a variety of reasons.

Let's check out this flanking activity by looking at the "who," the "how," and the "so what?" of this emerging trend.

So far, the familiar retail faces have been joining the fray: Target, CVS, Walgreens, and perennial favorite Wal-Mart. And their plans are fairly aggressive: CVS, for example, is looking to launch 60 sites soon. Walgreens says its goal is 1,300 sites by 2007 (Medpage Today, Oct. 14, 2005).

The motivation: Same-store sales for most chain drugstores are flat or experiencing small increases. The highest-margin products in the stores have been and continue to be pharmacy. So retailers want to get more people in for prescriptions--and, while they are at it, to buy other goods as well.

The miniclinic fills the bill nicely. It fits with the convenience positioning that retailers enjoy: There is little to no wait for a diagnosis of a "routine" medical problem, it's easy to get a prescription filled without going to another destination, and customers can get their film developed (or whatever other convenience item they need).

Many retailers are turning to national miniclinic providers, who essentially become tenants in the retail space. The national models are appealing to retailers for a host of reasons, including an ability to build their own national brand, outsourcing of a unique skill set, and--what appears to be growing in importance--a reliable infrastructure to capture data.

Hospitals would be wise to look at these venues for both short-term revenue and downstream referrals.