Hospitals and health systems are increasingly acquiring urgent care (UC) centers to further their brand presence in select markets and draw patients from UC into the systems’ many other service offerings. New competition from retail clinics and ongoing financial issues seem to be the motivators behind the deals, according to an analysis in Becker’s. A number of recent acquisitions are highlighted, including, for example, Community Health Systems’ purchase of 10 Carbon Health urgent care centers as well as a deal inked by UPMC’s new joint venture with GoHealth Urgent Care, which picked up MedExpress centers in 3 states.
Size up the market: “Most of these acquired UCs—Carbon, FastMed, NextCare, MedExpress—were impaired assets in which the hospital was the only viable buyer,” says Alan A. Ayers, MBA, MAcc, President of Urgent Care Consultants and Senior Editor of JUCM. Additionally, Ayers questions whether hospital deal activity in urgent care is in fact a response to retailers’ health clinic offerings because JUCM excusive research shows that these types of store-clinic footprints fell by more than 20% last year, and of the 3 largest players, only Kroger has remained stable. More likely, Ayers believes the strategy play is in the health systems’ eagerness to snap up loyal patients with UC as the point of entry. Besides, hospital acquisition of UC may come with increased rates, new facility fees, and additional utilization in the health system—which is what employer sponsors and payers are hoping to avoid by encouraging use of the more cost-effective UC centers in the first place.