The news: CVS is expanding primary care services at its MinuteClinics via partnerships with health systems, per Modern Healthcare.

• A recent tie-up with Emory Healthcare Network in Georgia offers in-network primary care at every MinuteClinic in the state for Aetna members. The 35 clinics will be co-branded, and MinuteClinic patients can access specialty care, imaging, and other services at Emory that CVS doesn’t provide.
• CVS is seeking approval for a similar partnership with Boston-based Mass General Brigham. There are 37 MinuteClinic sites in Massachusetts. However, the proposed collaboration is being criticized by doctors and others in the state since MinuteClinics employ advanced practice providers rather than MDs.

Why it matters: Retail health clinics had a moment earlier in the decade, but their popularity and relevance have since faded.

Consumers went to retail pharmacies like CVS, Walgreens, and Walmart to get COVID-19 vaccines and tests. Many people grew comfortable with getting other types of medical care at these locations, such as for minor illnesses and infections. Retail health players invested in building out their healthcare services, as a result.

But post-COVID, retail clinics suffered. Consumers opted for conventional doctors or urgent care centers and hiring physicians proved difficult.

• CVS and Walgreens have already shut down or will close thousands of stores, many of which include medical clinic services. Closures are largely driven by consumers going to drugstores less frequently in favor of online retailers.
• Walgreens also now operates as a standalone company, separate from the primary care chain it invested billions in (VillageMD) as part of its retail health strategy. Walgreens execs noted that recruiting doctors to work in retail health stores was a major challenge.
• Walmart is out of the health clinic business entirely.

Still, CVS isn’t ditching retail health—even as it closes MinuteClinics. The company likely wants to connect Aetna members with preventive and primary care services, particularly in regions with provider shortages. And CVS sees partnerships with established health systems as a way to boost its credibility as a medical care facility among hesitant consumers.

The final word: We don’t see CVS’ MinuteClinic affiliations with healthcare providers as a signal that retail healthcare is making a comeback. CVS is in a different position from other retail clinic operators since it can steer Aetna members to its medical services.

But consumers have made it clear that they’re not too interested in getting healthcare at drugstores where unhealthy items like junk food are sold—especially when there are a plethora of other options. Companies that want to stay in the retail clinic space would be wise to position their services around nutritious food items, OTC health supplements, and pharmacist support to show folks they’re serious about being a patient care destination.

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