Case

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$$Minute Clinic

$$Mentioning a nationwide shortage of primary care providers, millions of patients newly insured through the Affordable Care Act, and an aging population, Andrew Sussman, MD

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$$president of CVS

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s Minute Clinic division, said Minute Clinic. MinuteClinic can help to meet the demand, collaborating with local provider groups as part of a large healthcare team.

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$$MinuteClinic started in

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$$and$,$ as of late

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CVS

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$$ Its clinics are staffed by nurse practitioners and physician assistants, rather than physicians. The clinics are open seven days a week, and appointments are not needed. The nurse practitioners and physician assistants diagnose, treat, and write prescriptions for a variety of common illnesses. MinuteClinic shows customers the prices of care

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typically less than the prices in a physician's office

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$$and usually accepts insurance. Most clinics are in CVS pharmacies, although an increasing number are in other sites, and some have connections with local health systems.

$$In late December

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$$CVS Health announced an agreement to buy the health insurer Aetna. Some have suggested that this move could reshape the healthcare industry by integrating insurance with a provider organization.

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Abelson and Thomas

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Discussion Questions

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$$For what products is MinuteClinic a substitute?

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$$For what products is it a complement?

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$$How would the continued expansion of MinuteClinic affect revenues of primary care practices?

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$$What attributes other than prices would make MinuteClinic attractive to patients?

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$$Is the supply of primary care physicians large enough to meet current levels of demand?

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$$Would you expect the expansion of Minute Clinics to increase or decrease spending? Why?

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$$What are the implications of Aetna's sale to CVS

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$$A common criticism is that MinuteClinic is located in well

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to

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do areas. Is this a concern?