While retail locations and wellness centers may not be big moneymakers in their own right, the return on investment can be considerable if measured through increased market share and reduced government penalties for readmissions.
This article first appeared in the October 2014 issue of HealthLeaders magazine.
As patient volumes continue to shift from the inpatient to the outpatient setting, healthcare organizations are looking for new ways to capture market share and fuel growth outside of the four walls of the hospital.
Some health systems and hospitals are branching into retail medicine and wellness sites as a way of becoming more relevant to their communities, and while there may not be a strong direct ROI for these strategies, the secondary financial benefits can be substantial.
Retail sites drive patient volume
One health system that recently made a foray into retail medicine is Main Line Health, a 1,295-bed organization with $1.5 billion in annual operating revenue based in Bryn Mawr, Pennsylvania. In January 2014, the organization opened its Main Line Health Center at the Exton Square Mall in the Philadelphia suburbs.
Rene Letourneau is a contributing writer at HealthLeaders Media.