Case $7\mathrm{.}1$ 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$,$ president of CVS$$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. $($Nesi$2014).$

MinuteClinic started in $2000$ and, as of late $2-17,$ had more than $1,000$ locations $($CVS $2017).$ 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 $($typically less than the prices in a physician's office$)$ 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 $2017,$ 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. $($Abelson and Thomas $2017)$

Discussion Questions

$$ For what products is MinuteClinic a substitute?

$$ For what products is it a complement?

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

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

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

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

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

$$ A common criticism is that MinuteClinic is located in well$-$to$-$do areas. Is this a concern?