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Clinical Laboratories and Pathology Groups

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Clinical Laboratories and Pathology Groups

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JAMA Study Shows American’s with Primary Care Physicians Receive More High-Value Care, Even as Millennials Reject Traditional Healthcare Settings

Clinical laboratories that help patients access care more quickly could prevent declines in test orders and physician referrals

Millennials are increasingly opting to visit urgent-care centers and walk-in healthcare clinics located in retail establishments. And those choices are changing the healthcare industry, including clinical laboratories and anatomic pathology groups, which traditionally have been aligned with the primary care model.

However, research published in JAMA Internal Medicine suggests outpatients with primary care doctors have better healthcare experiences and receive “significantly more” high-value care. These findings come on the heels of a Kaiser Family Foundation (KFF) Health Tracking Poll which revealed that 26% of 1,200 adults surveyed did not have primary care physicians. And of the millennials polled (ages 18-29), nearly half (45%) had no primary care provider.

Why is this important? High-value care include many diagnostic and preventative screenings that involve clinical laboratory testing, such as colorectal and mammography cancer screenings, diabetes, and genetic counseling. 

And, as Dark Daily reported in “Millennials Forge New Paths to Healthcare, Providing Opportunities for Clinical Laboratories,” the increasing popularity of retail-based walk-in clinics and urgent-care centers among millennials means traditional primary care is not meeting their needs. That’s in large part because of time.

And, this is where clinical laboratories can help.

In the Millennial’s World, Convenience Is King

Millennials are Americans born between the early 1980s to late 1990s (AKA, Gen Y). And, as Dark Daily reported, they value convenience, saving money, and connectivity. Things they reportedly do not associate with traditional primary care physicians.

According to the KFF poll:

  • 45% of 18 to 29-year-olds,
  • 28% of 30 to 49-year-olds,
  • 18% of 50 to 64-year-olds, and
  • 12% of those age 65 and older, have no relationship with a primary care provider.

Thus, it’s not just millennials who are not seeing primary care doctors. They are just the largest age group.

When this many people skip visits to primary care doctors, medical laboratories may see a marked decline in test volume. Furthermore, shifting consumer preferences and priorities means clinical laboratories need to reach out and serve all healthcare consumers, not just millennials, in new and creative ways. 

“We all need care that is coordinated and longitudinal,” Michael Munger, MD, FAAFP, a family physician in Overland Park, Ks., and President of the American Academy of Family Physicians, told the Washington Post. “Regardless of how healthy you are, you need someone who knows you.” (Photo copyright: American Academy of Family Physicians.)

Consider Changes in Lab Business Model

Dark Daily advises clinical laboratory leaders to consider changes in how they do business to better serve busy consumers. Here are a few ways to appeal to people of all ages who seek value, fast service, and connectivity:

  • Offer walk-in testing with no appointments.
  • Create easy-to-navigate online scheduling tools.
  • Enable patients to request tests without doctors’ orders as the lab’s market allows.
  • Make results quickly available and in easy-to-understand reports.
  • Post test results online for patients to securely access in patient portals.
  • Make it easy to interact with personnel or receive information through lab websites.
  • Collaborate with telehealth providers.
  • Post prices of the most commonly ordered tests.
  • Use social media to promote the lab and respond to online reviews.

Younger Americans Do Not Perceive Value of Primary Care

The JAMA researchers studied 49,286 adults with primary care and 21,133 adults without primary care between 2012 and 2014. The methodology entailed:

  • 39 clinical quality measures,
  • Seven patient experience measures, and
  • 10 clinical quality composites (six high-value and four low-value services).

“Americans with primary care received significantly more high-value care, received slightly more low-value care, and reported significantly better healthcare access and experience,” the JAMA authors wrote.

Healthcare Dive notes that the JAMA study may be the first time researchers have substantiated the higher value of primary care, which generally provides services for:

  • Cancer screening (colorectal and mammography),
  • Diagnostic and preventive testing,
  • Diabetes care, and
  • Counseling.

“Poor primary care supply or access may be hurdles, or some Americans do not perceive the potential value of primary care, particularly if they are younger … and healthier,” the JAMA researchers noted.

An earlier study published in JAMA Internal Medicine titled, “Comparison of Antibiotic Prescribing in Retail Clinics, Urgent Care Centers, Emergency Departments, and Traditional Ambulatory Care Settings in the United States,” suggests that prescriptions for antibiotics written to patients that visit non-traditional healthcare settings are increasing.

The study found that “Only 60% of outpatient antibiotic prescriptions dispensed in the United States are written in traditional ambulatory care settings [defined as medical offices and emergency departments]. Growing markets, including urgent care centers and retail clinics, may contribute to the remaining 40%.”

A Washington Post analysis of this JAMA study reports that “nearly half of patients who sought treatment at an urgent-care clinic for a cold, the flu, or a similar respiratory ailment left with an unnecessary and potentially harmful prescription for antibiotics, compared with 17% of those seen in a doctor’s office.”

This drives home the importance of having a primary care doctor.

“Antibiotics are useless against viruses and may expose patients to severe side effects with just a single dose,” notes Kevin Fleming, Chief Executive Officer of Loyale Healthcare, a healthcare financial technology company, in its analysis of the earlier JAMA study. “Care that’s delivered on a per-event basis by an array of unrelated providers can’t match the continuity of care that is achievable when a patient receives holistic care within the context of a longer-term physician relationship,” he concluded.

Clinical laboratory leaders and pathologists are advised to regularly engage with primary care physicians—not just oncologists and other specialists—and keep them informed on what the lab is doing to better attract millennials and develop long-term relationships with them based on their values.

—Donna Marie Pocius

Related Information:

Comparison of Antibiotic Prescribing in Retail Clinics, Urgent Care Centers, Emergency Departments, and Traditional Ambulatory Care Settings in the United States

For Millennials, a Regular Visit to the Doctor’s Office is not a Primary Concern

Quality and Experience of Outpatient Care in the United States for Adults With or Without Primary Care

JAMA Study Makes Case for Investing in Primary Care

Millennial Expectations Fundamentally Changing Healthcare Landscape

Millennial Patient Challenge: Earning and Keeping, the Next Generation’s Business in a Post-Loyalty Marketplace

Millennials Forge New Paths to Healthcare, Providing Opportunities for Clinical Laboratories

Consumer Trend to Use Walk-In and Urgent Care Clinics Instead of Traditional Primary Care Offices Could Impact Clinical Laboratory Test Ordering/Revenue

Primary care is shifting from traditional office visits to urgent care and walk-in clinics even as large hospital groups continue to buy up independent physician practices, altering where and from whom clinical laboratories receive referrals and test orders

Medical test ordering and referrals from office-based physicians are the financial foundation of the clinical laboratory industry. Thus, recent trends reshaping how and where physicians practice medicine, and the ownership of their medical groups, could have both beneficial and adverse implications for medical laboratories and anatomic pathology groups.

Primary care doctors who own their own medical practices are disappearing from the healthcare landscape at an impressive rate, as large hospital groups expand their share of the primary care market. According to the New York Times (NYT), in 2010, large hospital groups employed 23% of the nation’s primary care physicians. By 2016, that number had increased to 43%.

However, office visits to primary care physicians fell by 18% between 2012 and 2016, according to a report by Health Care Cost Institute (HCCI). During the same period, visits to specialists rose 31%.

Walk-In and Urgent Care Clinics Replacing Traditional Office Visits

An increasing number of patients are selecting different types of providers when seeking medical care. Convenience, low cost, and shorter wait times have many patients choosing urgent care and retail or walk-in clinics instead of traditional office visits. Dark Daily reported on this growing trend last fall in “Five Reasons Why Retail Clinics Are a ‘Game-Changing’ Threat to Traditional Healthcare Providers That Could Strain Clinical Laboratories and Pathologists.”

The number of retail or walk-in clinics in the United States has increased by 14 times over the past decade, according to Statista, a provider of market and consumer data. In 2008, there were only 200 retail clinics in the country. Current projections indicate there will be 2,800 walk-in clinics located throughout the country by the end of this year.

In 2010, retail clinic sales totaled $518 million. By the end of 2016, retail clinic sales were more than $1.4 billion representing an increase of 20.3% per year during that time period, according to the Kalorama report, “Retail Clinics 2017: The Game-Changer in Healthcare.”

Jeffrey D. Le Benger, MD, FACS

“There is huge consolidation in the market right now,” Jeffrey D. Le Benger, MD, FACS (above), Chief Executive Officer of Summit Medical Group in New Jersey, told the NYT. “Everyone is fighting for the primary care patient.” (Photo copyright: Gannett.)

Retail or walk-in health clinics were originally intended for uninsured and underinsured individuals who sought an affordable option for medical services. These clinics are designed to treat non-emergency situations, such as burns, sprains, and minor infections or illnesses. Services at these clinics are usually administered by a nurse practitioner.

Retail walk-in clinics often are located inside larger, popular stores. Examples include:

Providing 24/7 Healthcare Services at Lower Costs

In contrast, urgent care clinics are equipped to handle more serious, non-emergency injuries and conditions and are generally staffed by physicians. The Urgent Care Association of America states that there are more than 7,500 urgent care centers in the US with an annual revenue of $18 billion. This industry is expected to grow by 5.8% in 2018. The largest urgent care group in the country—MedExpress Urgent Care in Morgantown, W.Va.—has 252 locations in 22 states.

Another growing urgent care center—ZoomCare of Portland, Ore.—has 36 locations in Oregon and Washington State. Services offered include: urgent care, primary care, pediatrics, gynecology, orthopedics, dermatology, dental care, ear nose and throat, chiropractic, podiatry, physical therapy, mental health, immunity, imaging, internal medicine, clinical laboratory, and prescriptions. They offer convenient, extended hours and some locations are open seven days a week.

“Our customers are looking for world-class conveniences,” Albert DiPiero, MD, co-founder and Chief Medical Officer at ZoomCare, told Portland Monthly.

ZoomCare lists its menu of services/cost for both insured and self-pay patients on its website. Basic medical laboratory tests include:

  • Strep-$50;
  • Urine-$20;
  • Mononucleosis test-$20;
  • Pregnancy-$20; and,
  • Influenza A/B-$40.

The website states that half of ZoomCare’s medications cost less than $10, and five out of six of the medicines are less than $20.

With such low costs and easy accessibility, it’s understandable why the number of patients seeking care in non-traditional office settings is growing. Clinical laboratories must accept and support these new sites of healthcare delivery to ensure continued procurement of lab test referrals. Staying on top of these trends and adjusting to consumer demand will help labs thrive and survive in healthcare’s ever-changing landscape.

—JP Schlingman

Related Information:

How ZoomCare is Shaking up the Checkup

The Disappearing Doctor: How Mega-Mergers Are Changing the Business of Medical Care

Healthcare Mega Mergers Push Primary Care Clinics Closer to Extinction: Five Takeaways

AETNA and ZoomCare Announce New Accountable Care Collaboration in Oregon

Number of Retail Clinics in the United States from 2008 to 2018

Retail Clinics 2017: The Game-Changer in Healthcare

Urgent Care Industry Hits $18 Billion as Big Players Drive Growth

Five Reasons Why Retail Clinics Are a “Game-Changing” Threat to Traditional Healthcare Providers That Could Strain Clinical Laboratories and Pathologists

Five Reasons Why Retail Clinics Are a “Game-Changing” Threat to Traditional Healthcare Providers That Could Strain Clinical Laboratories and Pathologists

Research conducted by Kalorama suggests the popularity of retail clinics represents a trend towards newer healthcare models that challenge existing models of care, and which could severely impact hospitals, clinical laboratories, and pathology groups

In recent years, pathologists and medical laboratory managers have watched as retail clinics housed in drug and grocery stores became a go-to service for healthcare customers seeking relief from minor illnesses. However, to market research company Kalorama, retail clinics also are a “game-changer” that could pose a threat to healthcare providers if their growth remains unchecked.

At risk are health systems and office-based physicians, along with the clinical laboratories and pathology groups that serve them. This would happen if patients shy away from primary care doctors in favor of cheaper, faster, medical care. However, as retail clinics expand the services they provide, they also could become an important source of orders for certain types of medical laboratory tests.

Kalorama defines retail clinics as, “healthcare centers that provide basic and preventative care in a retail setting; excluded are crisis and acute care centers; urgent care centers; emergency facilities; and wellness centers.” According to Kalorama’s data, “in 2016, total US retail clinic sales are estimated at more than $1.4 billion, an increase of 20.3% per year from $518 million in 2010.”

This increased use of retail clinics is a mixed blessing. On one hand, easy accessibility, low-wait times, and flexibility combined with lower costs for basic care is a boon for certain patients. On the other hand, this emergent healthcare model requires that traditional healthcare facilities address the impact of retail clinics on traditional practices, patient care, and regulatory standards.

Here are five reasons why retail clinics could threaten traditional healthcare models:

Retail Clinics Disrupt the Normal Healthcare Delivery Environment

Retail clinics are designed for immediate treatment of symptoms and vaccinations, not in-depth examination or long-term healthcare relationships between physician and patient. However, because retail clinics are a convenient low-cost option for patients, they become direct competition for full-service. Why visit a primary care physician (PCP) when you can receive off-hour care at lower prices and with faster wait times?

Based on data from peer-reviewed journal Mayo Clinic Proceedings, the graph above illustrates the huge growth of retail clinics over just the past 10 years, which is expected to continue. (Image copyright: Accenture Consulting.)

There is a rising fear among PCPs that the quick fix of retail clinic services will translate into poorer overall health for patients who fail to establish permanent long-term healthcare connections. This fear is validated by an American Medical Association (AMA) report that states, “only 39% of retail clinic users report having an established relationship with a primary care physician, which contrasts to about 80% of the general population reporting such a relationship.”

Retail Clinics Increase Competition for Primary Care Practices

Rather than competing with emergency departments, retail clinics directly compete with primary care clinics, according to Kalorama and the AMA. Staffed primarily by nurse practitioners and physician assistants, retail clinics treat symptoms of acute and easily identifiable health issues. There is growing concern that this limits opportunity for patients to receive more comprehensive healthcare that includes identification and treatment of chronic diseases.

And though competition in the healthcare market is good, physicians worry that retail clinics may push smaller stand-alone clinics out of business. The Kalorama report explains that “ultimately, medical practices are businesses that rely upon a steady flow of [patients] for their success.” When primary care facilities close due to loss of patients, it can create immediate healthcare gaps in communities.

Retail Clinics Could Increase Strain on Medical Laboratories and Pathology Groups

Kalorama’s data shows that retail clinics could place strain on medical laboratories and pathology practices. The study notes, “retail clinics are becoming relatively large users of point-of-care (POC) tests, clinical chemistry, and immunoassay laboratory tests and vaccines.” Kalorama’s report states, “the combined sales of these three types of products to retail clinics reached $240 million” in 2015, reflecting a 26% per year growth in testing since 2010. Projections from Kalorama suggest further increases in retail clinic test ordering in years to come.

The Clinical Laboratory Improvement Amendments (CLIA) advisory boards, the US Food and Drug Administration (FDA), and the Commission on Office Laboratory Accreditation (COLA) all have expressed concerns about the rise of retail clinic testing. COLA’s 2017 Spring Newsletter states that the increased use of retail clinics could lead to unnecessary testing, and increasing use of “non-laboratory personnel for laboratory testing.”

The COLA newsletter also warns that pathologists and clinical laboratory managers “should expect to see, over time, a steady increase in the menu of diagnostic testing offered by retail clinics.” COLA suggests that pathologists and laboratory scientists will experience increased demand from retail clinics for their services and expertise, but that because retail clinics often require high-volume, fast-paced testing without the benefit of full clinical laboratories (both in terms of staff and equipment) there is potential for retail clinic testing to fall short of industry standards.

Retail Clinics Fragment Health Records

According to an article in AMA Wire, the AMA House of Delegates (HOD) established guidelines for retail clinics that focus on continuity of medical records and the safeguarding of patient care. The guidelines state that retail clinics “must produce patient visit summaries that are transferred to the appropriate physicians and other healthcare providers in a meaningful format that prominently highlights salient patient information.” The fear, according to the AMA, is that the fragmenting of medical records may bring harm to patients via miscommunication that undermines patient-physician relationships and complicates oversight in treatment plans.

The Kalorama report echoes this sentiment. It states that physicians often take a negative view of retail clinics because of the lack of communication between retail clinics and primary care practices, citing a lack of cooperation or “unwillingness or inability on the part of convenience clinics to share medical information about patients with primary care providers.”

Retail Clinics Are Expanding Their Reach

Despite the fact that the AMA Council on Medical Services 2017 report on delivery reform recommends that retail clinics limit the scope of their care, expansion of retail clinic services has gone unchecked in many areas according to the Kalorama report. AMA policy states that retail clinics must have a “well-defined and limited scope of clinical services,” and the AMA’s 2017 guidelines state that “retail health clinics should neither expand their scope of services beyond minor acute illnesses … nor expand their scope of services to include infusions or injections.”

As retail clinics open around the country and expand their offerings there is a call for increased regulation of retail clinics to check that growth. COLA states that retail clinics are positioning themselves to play a major role in the delivery of primary care services. And the Kalorama report suggests that the trend towards retail clinic use will continue to rise, creating both challenges and opportunities for providers, clinical laboratories, pathologists, and healthcare policy makers who will be required to address the disruption to their businesses.

-Amanda Warren

Related Information:

Retail Clinics 2017: The Game-Changer in Healthcare

Report 7 of The Council on Medical Service: Retail Health Clinics

COLA’s Insights Spring 2017: The Rise of Retail Medicine

The Advance of the Retail Health Clinic Market: The Liability Risk Physicians May Potentially Face When Supervising or Collaborating with Other Professionals

Primary Care Practice Response to Retail Clinics

Retail Clinics are Poised to Offer More Health Services, Participate in ACOS, and Offer Expanded Menu of Clinical Pathology Laboratory Tests

Retail Clinics Continue to Shape Local Healthcare Markets

More Medical Laboratory Testing Expected as Retail Clinics Change Delivery of Routine Healthcare Services

Top-5 Diagnostics Trends Identified by Kalorama Will Impact In Vitro Diagnostics Manufacturers, Medical Laboratories in 2017

UnitedHealth’s Plans to Build More MedExpress Urgent Care Centers Is a Sign of Strong Consumer Demand and Could Be an Opportunity for Clinical Laboratories

CVS MinuteClinic to Use Epic EMR in Support of Nationwide Growth Plan, also Opens Possibility of Accessing Clinical Laboratory Data from Local Providers

It’s an interesting statement about how CVS, the national pharmacy chain, believes it can expand its MinuteClinic health services while also integrating data feeds with HIEs

In another demonstration of how fast healthcare is transforming, the pharmacy chain CVS Caremark Corp. will implement the Epic electronic medical record system (EMR) in its MinuteClinic sites nationwide. This means MinuteClinic clinicians will be using the same EMR as a growing number of hospitals and office-based physicians.

What may make this development noteworthy for pathologists and clinical laboratory managers is that use of the EpicCare EMR system sold by Epic Systems Corp. of Verona, Wisconsin, is that MinuteClinic sites will make it easier for CVS to pass clinical data it gathers to regional health information exchanges (HIEs). (more…)

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