Urgent care franchises (aka: “Doc in a Box”) are studying fast food organizations, such as McDonald’s, to help them learn how to deliver health care with the same efficiency as the fast food industry does its products but at significantly lower cost and with better service (maximum 15 minute waits to see a physician and no appointment necessary). Issues of location, branding, efficiency and convenience are major concerns.
The cost differential is significant.
A study conduced by Walgreens found that patients are making an increasing number of visits to retail clinics. Patient visits for preventive services and care for chronic illnesses increased from 4% in 2007 to 17% in 2013. Return visits increased from 15% in 2007 to above 50% in 2013.
The largest independent urgent care chain, with 128 clinics, is American Family Care, founded by Bruce Irwin, M.D. “Why can’t you get good health care as easily as you get fast food, ” he is quoted as asking. Irwin’s clinics eliminate appointments, cut down on wait times, have digital X-ray machines and waiting rooms with flat-screen televisions and wireless Internet access.
How do such chains as AFC do it? Their doctor’s only focus on medicine for their ten-hour shifts and they have zero on-call duties. Operational duties (insurance billing, purchasing, hiring, certification, etc.) are outsourced to a centralized office.
And they are located—no surprise—in high traffic areas cheek-to-jowl with McDonalds, Wal-Mart, Target and other retail mega-successes.
The typical stand-alone urgent care center is doing $1.5 million in annual sales and profits of $300, 000 or more. Upfront costs are about $1.1 million and there is a 6% recurring royalty fee.
