Rapid Growth of Urgent Care Clinics; Cost Competition for Hospital ERs

I have posted a number of notes about walk-in health clinics which are usually located in chain drug stores and staffed by nurse practitioners (NPs). The business model for them is to treat routine minor problems. A recent article discussed the rapid growth of urgent care clinics, many of which are attracting venture capital funding (see: Race Is On to Profit From Rise of Urgent Care). These latter facilities, in comparison to walk-in clinics, are staffed by physicians and offer a wider range of services. A recent article raised the issue of how to understand the mission and scope of services of urgent care facilities. Below is an excerpt from it: Urgent care is a low-margin, high-volume proposition....The national average charge runs about $155 per patient visit.....Urgent care clinics also have a crucial business advantage over traditional hospital emergency rooms in that they can cherry-pick patients. Most of these centers do not accept Medicaid and turn away the uninsured unless they pay upfront. Hospital E.R.s, by contrast, are legally obligated to treat everyone. But as urgent care centers expand their reach, regulators in some states are scrutinizing their activities. While some states require the clinics to be licensed, most do not. It is unclear whether such urgent care centers offer better or worse care than other providers.....The average charge to treat acute bronchitis at an urgent care center in 2012 was $122, compared with $814 at an emergency room, accor...
Source: Lab Soft News - Category: Pathologists Authors: Tags: Health Insurance Healthcare Business Healthcare Delivery Hospitals and Healthcare Delivery Medical Consumerism Quality of Care Source Type: blogs