CVS Shuts 90 MinuteClinics For The Season, Citing Demand
March 09 2009 - 12:03PM
Dow Jones News
CVS Caremark Corp. (CVS) has placed about 16% of its retail
MinuteClinic locations on a seasonal schedule, closing their doors
for the time being, while keeping other drugstore clinics open in
those markets, a company spokeswoman said Monday.
MinuteClinic, the largest operator of retail clinics in the
U.S., is making the move "to align with consumer demand," said CVS
Caremark spokeswoman Carolyn Castel. The company now has about 460
clinics in operation, excluding those now closed for the season,
she said.
The move has implications for the retail clinic industry, which
enters a slow season in the spring, and may be a sign of increased
pressure wrought by the economic recession.
Some 90 MinuteClinics started operating on a seasonal schedule
earlier this month, while the company extended weekend hours in
certain other clinics, said Castel. The company will reopen the
stores for the next flu season or other seasonal needs, she said.
MinuteClinic has not exited any market.
"This is the first time they've ever done such a thing," said
industry consultant Tom Charland, chief executive of Merchant
Medicine LLC, who noted in a report on his web site earlier Monday
that MinuteClinic had removed 89 clinics from the list on its site
since last week while adding two new ones. Nine states are most
affected, notably California and Florida, according to
Charland.
This will mark the first time MinuteClinic has placed clinics on
a seasonal basis, "if indeed that turns out to be true" and the
company reopens those clinics later, he said in an interview. Until
now, MinuteClinics operated seven days a week, all year, he
said.
"For those in the industry, the nagging problem is what to do
with the extra capacity we have in the off season, and unless that
problem gets solved this industry will continue to have a major
structural weakness," Charland said. He had noted on his blog
earlier this month that growth in the retail clinic industry has
almost come to a halt this year.
Charland sees a larger economic dimension to MinuteClinic's
move.
"I would imagine that this isn't just about we're going into the
off-season. That cash preservation is something that we're seeing
cross-industry," he said.
CVS' Castel noted that MinuteClinic continues to open new
clinics in Massachusetts.
"MinuteClinic will be continuing to serve all of the communities
in which we operate while maintaining convenient access to care,"
said Castel. Nearly all the seasonal clinic locations are within 10
miles of another MinuteClinic location and more than half are
within five miles, so access has been affected only minimally, she
said.
-By Dinah Wisenberg Brin, Dow Jones Newswires
215-656-8285; dinah.brin@dowjones.com