Retail Medicine

Why are malls so successful, especially around Christmastime? Because though they may be a pain to navigate if you have one specific item to purchase, they are a blessing if you need several items and/or have only a vague idea of what you want. Malls provide an assortment of variety and that saves you both time and money instead of having to drive around town searching for what you need. The same idea goes for giant superstores that carry everything from diapers to digital cameras to dill weed.

 Hospitals have caught on to the notion of providing convenience to clientele through retail within the hospital itself. And, in recent tight economic times, hospitals are faced with the challenge of increasing revenue because the wells of health plan and government reimbursements are drying up.

 Though any woman would tell you “retail medicine” is the undeniable feeling of bliss she experiences when engaged in a no-holds-bar spending spree, the phrase “retail medicine” actually refers to the health care related products and services provided by hospitals that are not covered by insurance.

 In the Milwaukee Business Journal, Gary Paquin, executive vice president of The Paquin Group – a health care retail consultant firm – explains, “The average hospital makes $500,000 annually from retail such as gift and coffee shops, but has the potential of $5 million to $15 million annually with the extended retail medicine. The return on investment is higher in retail than in reimbursed health care, with 15 percent to 20 percent returns in retail, compared with 2 percent to 3 percent return in reimbursed health care.”  

 Because of those staggering numbers several hospitals are catching on. But forget the “cards and balloons” gift shops, hospitals around the world are diving into a hodgepodge of retail opportunities. Here is a list of some of the services and specialty stores that hospitals are either implementing or renting space out to.

 Retail Services in Health Care Settings

-catering services

-event hall rental

-dining

-retail clinics

-optical stores

-contact lenses stores

-dental and orthodontic services

-hearing services

-pharmacy and supplement needs

-healthy food markets

-newborn photography services and photo purchasing options

-prosthetics services

-massage, acupuncture, chiropractic and aromatherapy services

-exotic flower shops

-fitness clubs

-art and dance studios

-specialty coffee shops such as Starbucks

-specialty cancer shops (wigs, scarves, prosthetics, etc.)

-new mom shops

-gift certificates

-specialty cosmetics

-cosmetic surgery centers

-health library and book stores

-classes (smoking cessation, weight-loss, fitness, etc.)

 

Positive Effects of Retail in Hospitals

-Increased revenue

-Increase patient satisfaction

-Convenience for patients and visitors (especially elderly patients who have limited transportation)

-Enhancement of patient loyalty

-Ability to control the administering of trusted products and services from trusted sources to patients

-Ability to educate consumers on products benefits and safe usage of products

-Boost your brand

-Engage patients in wellness-related services

 

 So what does the future hold for hospital retail? Though it is unlikely hospitals will depend on Christmas shoppers to provide a bulk of the year’s revenue or that teens will start loitering with their friends in hospital parking lots on Friday nights, health care retail is expected to grow. So, what should we be asking as you put together a hospital retail strategy? The main thing marketing departments should focus on is razor-sharp concentration on the consumer. Every detail about how stores are designed, to convenient placement within the hospital, right down to the employees’ knowledge about the product or service adds value to your consumers. 

 

For more information on retail in healthcare visit these links:

Paquin Health Care Company:

www.paquinhealthcare.com 

 See how one healthy restaurant chain is taking over the hospital cafeterias:

http://www.abc.net.au/news/video/2007/11/18/2093972.htm

 Find out what services are being offered in Wal-Mart’s retail clinics:

http://www.walmart.com/clinics?fromPageCatId=5431

 Redlands Community Hospital offers their stores’ products online:

http://redlandshospitalstore.com/

 Round table Discussions:

http://hospitalbusinessdevelopment.blogspot.com/2007/10/i-recently-attended-roundtable.html

Beyond the Gift Shop: Boost Revenue, Your Brand, and Patient Satisfaction with Strategic Hospital Retail (Ache Management Series) (Paperback) by Mindy Thompson-Banko:

Mindy Thompson-Banko (Author)

› Visit Amazon's Mindy Thompson-Banko Page

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http://www.amazon.com/gp/product/1567933041

 

Comments

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This is very informative. I like it. Hospitals or other establishment do this for endorsement, to get customers etc. and this is a good strategy, people buys it.

[SEO Company]

Well don't know whats going on but its not a Good way to do this. in my opinion we have to look again about this issue

[Chiropractic Marketing]

It's all about market share and profitability. With the struggles of insurance reimbursement and patient payments it's no wonder that Hospitals are looking for more revenue

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I know some hospitals that they looks like a Mall because you can get anything related to health care. But It is interesting if they have all the services in the waiting hall. Because if you have that kind of services that they can affect when you visit someone on the hospital. It can be awful and irrespectful

[Antivirus_man]

Merry Christmas! I wish you a lot of gifts and luck in the new year.

[JOBS_frend]

You write well will be waiting for your new publications.

[Web Services]

Health is always a good bussiness but in this case, it seems to be great.
Every person needs to be healthy, it's one of the many common needs.. by extending services to those non-covered by insurance it's easy to get better profits.
People would go to a place supported by a good hospital than any other clinic..

It gives a better reference about the place an possible service

[logo design]

Thank you for clearing this up for me. Being quite the tea-lover, I've often wondered about such things.

[jon.s@me.com]

I need information on how I can rent space in major hospitals across North America. I have a start up retail business that will need placement in hospitals for medical patience.

Any helpful advice or point in the right direction would be great.

I am unsure who I should be contacting when approaching a hospital. I am also trying to budget the cost of rent as I have no idea what the cost would be.

Thank you

[Chiropractic Coaching]

If service is good that type of mall so every patient would be come .These modern type of hospital mall is good for patients as well as mall owners.

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There’s so much great information in this article that I have to share it with my Friends later. I have bookmarked it to show him.

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