As Goes the Respiratory Season, so Goes Patient Volume—Which Is Especially Problematic for Retail

It’s self-explanatory that high incidence of seasonal respiratory conditions and infections equate to higher patient volumes and related revenue. Consequently, overdependence on those levels to maintain financial viability is perilous, to say the least. While this is a concern in urgent care, in the retail drugstore business where over-the-counter remedies account for a significant portion of the profit margin, it can be a make-or-break proposition. Just look at what Walgreens is going through right now. The company is closing 150 stores on the heels of $113 million in clinic losses after “a lighter than normal respiratory season kept Summit Health from seeing growth.” And Supermarket News reported that Rite Aid revealed closure of 21 stores in the opening months of its fiscal year, with more closings possible in the future. JUCM just published an article noting a shift in the retail health industry away from episodic care (which includes the highly risky reliance on flu and other respiratory “season”) to a “primary care medical home focused on Medicare Advantage.” Read about it in ‘Big Retail’ Pivots Are a Retreat from ‘On Demand’ Care.