The CVS Corp. announced Thursday that it has a “definitive” agreement to acquire Minneapolis-based MinuteClinic, a pioneer in so-called “retail-based” health clinics, with 83 clinics within stores in 10 states, including 66 at CVS/pharmacy locations.
The financial terms of the deal were not disclosed.
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MinuteClinic locations are staffed by certified nurse practitioners and physician assistants and offer treatment for common family illnesses such as strep throat, ear infections, poison ivy and pink eye. They also provide some common vaccinations.
The clinics have longer hours than most doctors’ offices, and their services cost less – and substantially less than they would at an urgent-care center or a hospital. But they’re not meant to replace a patient’s ongoing relationship with a primary care doctor, and in fact they refer patients to primary care practices if they do not have a “medical home.”
Nevertheless, concerns about such clinics’ potential impact on primary care practices in Rhode Island, combined with disagreements about how much free care they should provide and where they should be situated, stalled approval of an application to open three MinuteClinics at CVS stores here last summer. The application was eventually withdrawn.
In a news release about the acquisition, MinuteClinic CEO Michael Howe said that in the more than 18 months that the company has been partnering with CVS, it’s become very clear that “CVS really understands what the MinuteClinic model is all about,” and that the drugstore chain is “a great partner.”
“The MinuteClinic team has proven they can work collaboratively with physicians and deliver quality care in a convenient, timely and cost-effective manner,” said CVS Chairman, President and CEO Thomas M. Ryan.
“We have been impressed with the high level of patient satisfaction they have achieved over the course of seeing nearly half a million patients since their inception,” he added. “Our decision to acquire MinuteClinic was driven by our belief that this is clearly the right concept for consumers, payers and providers. Our new relationship with MinuteClinic will help us deliver this valued health care service to our customers.”
MinuteClinic plans to continue operating clinics in CVS/pharmacy and other retail locations (including existing Bartell Drug, Cub Foods, and QFC locations), and at new retail hosts as well as corporate and government offices. MinuteClinic’s headquarters will remain in Minneapolis, and the existing management team will continue in place.
