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23 Wal-Mart Clinics Unexpectedly Close

Twenty three - almost a third - of Wal-Mart’s walk-in clinics unexpectedly closed last week. The operator of the clinics, CheckUps, appears to have shut them without explanation. The problem appears to be with the CheckUps company itself, which fell behind on payroll payments and other expenses. As we’ve discussed previously on this site, Wal-Mart’s walk-in clinics are often run by independent entrepreneurs with little or no experience in health care. To cite just one example: the director of Wal-Mart contractor MinuteClinic, Michael Howe, is a former CEO of Arby’s. Howe was quoted as saying “clinics are to health care institutions, what ATMS are to the banking institution.” Making health care more accessible is important, but the quality of that health care is critical. As Wal-Mart expands its health care offerings and does more to keep employee health care expenses in-house, will doing things on-the-cheap really cut it?

Operator of Walk-In Clinics Shuts 23 Located in Wal-Mart Stores [New York Times]

CheckUps, a start-up operator of walk-in medical clinics, has shut down 23 of the clinics operating in Wal-Mart stores in Florida and three other Southern states.

CheckUps, based in New York, fell behind in paying its nurses and other vendors late last year, apparently running short of cash to meet its bills, according to a lawyer for one of its creditors.

Nurses arriving for work at the clinics on Jan. 18 found them to be closed.

CheckUps stopped paying some of its nurse practitioners in December, and it owes about $108,000 to Medtracker Personnel, said Stephanie Granda, a lawyer for Medtracker Personnel, a Louisiana employment agency that provided nurses to CheckUps clinics.

Wal-Mart said Monday that it was concerned about the impact on clinic customers. “It is obviously not a good thing that CheckUps has decided to close,” said Deisha Galberth, a Wal-Mart spokeswoman.

Starting with three clinics it acquired in Florida, CheckUps added 20 more last year in Wal-Mart stores, expanding to Louisiana, Alabama and Mississippi.

William Armstrong, a spokesman for CheckUps, said Jack Tawil, an entrepreneur who is chief executive of the privately held company, was talking to investors and “evaluating which of the operations in the retail stores they should keep open.”

Industry experts estimate that a company can consume $300,000 to $600,000 to finance a clinic and keep it running until it passes the break-even point of 25 to 30 patients a day and becomes profitable.

Wal-Mart has leased space to about 80 clinics in stores across the country, including the CheckUps clinics now closed. They are all operated by independent firms, including 13 by RediClinics, a unit of Steven Case’s Revolution Health company, and two by hospital companies in Wisconsin and Florida.

While some of the Wal-Mart clinics are headed by doctors, most are run by nurse practitioners who are limited to providing routine medical care like giving flu shots or prescribing drugs for sore throats. Operators say their main clients are mothers with small children, and that about 30 percent do not have a family doctor.

Wal-Mart said it hoped the CheckUps clinics would not stay vacant for long.

“We are working to reopen the clinics as quickly as possible, whether or not they are operated by CheckUps,” Ms. Galberth said. CheckUps still holds leases on the spaces, which are typically near the store entrances, alongside eye-care centers and other convenience tenants that besides paying rent are meant to help Wal-Mart attract customers.

She said Wal-Mart was proceeding with plans to lease space for several hundred clinics in the next two years. Lee Scott, Wal-Mart’s chief executive, said last year that the chain could serve as landlord to as many as 2,000 clinics by 2014.

Mr. Scott said Wal-Mart was looking for more hospital partners to add to the Aurora Health Care system in Wisconsin, which is already operating in seven stores in that state, and the North Broward Hospital District on Florida’s east coast, which plans to open one soon.

Tine Hansen-Turton, the executive director of the Convenient Care Association, a clinics trade group, said Wal-Mart had also been discussing making leasing deals with independent clinic operators that would be affiliated with local and regional hospitals.

Posted by Alex Goldschmidt on Tuesday, January 29, 2008

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COMMENTS

My personal reservations about these in store health clinics is the possibilty of transmitting airbone disesases into the general population of shoppers. I would have great concern as to the BestMangement Practices in ANY health clinic in ANY venue where foodstuffs are sold,and large numbers of shoppers congregate. What safety procedures are in place to avoid outbreaks of communicable diseases. Someone going to these clinics may have diseases such as T.B. and not know it-yet put others at risk. I always wondered why these clinics were not in a seperate facility,perhaps attached ,instead of instores. This is one BIG reason I believe in a border fence. Should a biological outbreak or attack occur,we NEED to be able to colse our borders for quarantine purposes. Nobody EVER talks about that. Did anyone see the History channel show recently about the Spanish influenza of 1918,recently. Hundreds of thousands died?Might we not heed the lesson?

ddrb in
Tuesday, January 29 at 01:03 PM

I think the idea of clinics in Walmarts (or any other venue for that matter) to handle small issues is a welcome change to the high expense of seeing a Dr. when a Nurse Practioner is perfect for the common cold etc.  It also goes a long way to preventive medicine to catch problems before they become much worse and require much more (and expensive) care.

I also think you are right about thinking of sick patients coming into the stores and possibly spreading their illness.  Now you won’t be able to stop them but why not make access to such clinics a seperate access from the store.  While you’re at it set up a seperate access for for the pharmacy where the meds are dispensed.

mary in
Tuesday, January 29 at 03:03 PM

Now you won’t be able to stop them but why not make access to such clinics a seperate access from the store.

I saw a WM store that had a seperate, outside entrance to one of these clinics.  Not sure if that’s the “norm”, but your idea does make sense, mary…

While you’re at it set up a seperate access for for the pharmacy where the meds are dispensed.

All the new WM construction has drive-thru pharmacies.  I would expect to see more of those, since they are already wildly popular with the competition.

bbrd in
Tuesday, January 29 at 06:02 PM

Give Credit Where Credit Is Due, bbrd!

It was actually ddrb who raised the question about a separate entrance for walk-in clinics at Wal-Mart.

ScrewedbyWal-Mart in Anytown, America
Tuesday, January 29 at 11:02 PM

One of the better ideas was 1-800-Call-Doc. Here in San Diego a service of Dr. visits at your home with a lab in the van. Portable chest X-ray and prescription with a physician and a lab tech/assistant coming to your home sometime that day after you call. Non-emergency and about a one hour visit. Cost around $200-$300. Bringing your current communicable problem down to a retailer venue is stupid and disregards the interests of the public as well as shoppers. If you are sick, stay home. If you need to see a physician perhaps this model will be more convenient than trying a emergency room visit. I hope it expands it works very well.

This idea of the MinuteClinic at a non-medical facility evolved out the the monetary interest to chisel health care costs against WalMart employees and make claim to ‘solving’ health care needs for low income workers as if they are second rate people not allowed access to proper health care outside of the vicious and ruthless interests of Bentonville’s profit motives. The Chambers memo was another confimation of this type of WalMart attitude against an expendable American workforce.

SanDiegoView in
Wednesday, January 30 at 04:27 AM

“WalMart attitude against an expendable American workforce”

Expendable workforce?  How about a spendable workforce?

I recently heard some capitalist on TV refer to their workers as “human capital.” I guess the term human resources is so yesterday.

ScrewedbyWal-Mart in Anytown, America
Wednesday, January 30 at 07:04 AM

Considering the fact that MinuteClinic is affilated with CVS pharmacies and not Walmart and the fact that Walmart did not invent the idea of clinics I don’t quite see how your statement of “evolved out of the monetary interest to chisel health care costs against Walmart employees..” is valid.

mary in
Wednesday, January 30 at 09:33 AM

mary: Isn’t the operative word “evolved”? Taking another’s idea and evolving or devolving (depending upon your viewpoint) it?Hasn’t WalMart done this in many areas?

ddrb in
Wednesday, January 30 at 05:25 PM

And to complete my earlier thought,in an earlier post about airborne infections,just imagine how easily spread a contagion could be via all the vendors and freightcarriers who travel from store to store and state to state.

ddrb in
Wednesday, January 30 at 05:29 PM

Screwedby: Thanks for the courtesy of your acknowledgment of my observation:re separate entrance. Class tells.

ddrb in
Wednesday, January 30 at 05:50 PM

“evolved”.... and in Walmart’s case the clinics in their stores “evolved” from others such as MinuteClinic.  There’s nothing new to this game and Walmart is just following the lead of others.  And yes Walmart has “evolved” others ideas and has been extremely successful in doing that.  How do you think they got to be the most successful retailer ever?  While you’re at it ask Microsoft about their “evolving” strategy.  It’s been pretty successful for them as well.

MARY in
Wednesday, January 30 at 06:38 PM

They got where they are by copying ,or stealing ideas from others,pushing their weight around ,and lets not forget payoffs.

ii in
Wednesday, January 30 at 06:51 PM

ii,

“They got where they are by copying ,or stealing ideas from others,pushing their weight around ,and lets not forget payoffs.”

No, almost all progress comes from copying other people’s ideas and improving on them!!  It is not called stealing, it’s called “Building a better mousetrap”!!  Do you think that all of the automakers “invented” the automobile, or did the take the idea and try to improve on it?

As for pushing their weight around, what ‘weight’ did Sam Walton have when he owned “Walton’s Five and Dime”?  Sears, K-Mart, J.C. Penny and a host of others, could have crushed him like a bug, when he started Wal-Mart!! 

And, as for ‘the payoffs’, do you have any PROOF of that statement or did you just pull that out of your butt?  If you have PROOF, I believe that it is your duty to report it to the authorities!!

RDS in
Wednesday, January 30 at 11:44 PM

“How do you think they got to be the most successful retailer ever?”
“MARY” the other Edelman/WalMart worship imbecile

Let’s see what Sam Walton said about this success shall we…

Wal-Mart founder Sam Walton once said, “I pay low wages. I can take advantage of that. We’re going to be successful, but the basis is a very low-wage, low-benefit model of employment.”
http://en.wikipedia.org/wiki/Criticism_of_Wal-Mart#_note-
iswalmartgood

“Is Wal-Mart Good for America?” PBS. November 16, 2004. Retrieved on February 24, 2007.

“It is not called stealing, it’s called “Building a better mousetrap”!!”
RDS the revisionist fraud

Let’s see what Sam Walton said about this shall we…

“It was Price’s first brainchild and, as Sam Walton freely admitted in his autobiography, the inspiration for Wal-Mart: “I guess I’ve stolen-I actually prefer the word ‘borrowed’-as many ideas from Sol Price as from anybody else in the business.”

“ ...I don’t quite see how your statement of “evolved out of the monetary interest to chisel health care costs against Walmart employees..” is valid.”
“mary” again at playing stupid the propagandist evasion tune and WalMart hymnal singer

Try knowing the WalMart attitude on this subject by reading the Susan Chambers memo on health care. In the mean time “mary” youself earn the Helen Keller quote again…

“People do not like to think. If one thinks, one must reach conclusions. Conclusions are not always pleasant.”
Helen Keller

WalMart/Waltons- Ask not what your corporate employer can do for your health care, ask only what you can do for your corporate employer billionaire’s ever increasing inherited wealth.

SanDiegoView in
Thursday, January 31 at 09:10 AM

SDV,

Okay, let’s get this straight, Sam said he could become successful, using a ‘low wage/low benefit’ model and he became successful and somehow there is something wrong with that, right?  Better he used your ‘high wage/high benefit model and did NOT become successful, right?  No wonder you will never become successful in business, because you would use the wrong model!!

I’ve always loved the way the ‘losers’, seem to like to tell the ‘winners’ how to run their business!!

RDS in
Thursday, January 31 at 11:58 AM

SDV, do I at least get an “imbecile” number like RDS?  I feel left out of your sob BS stories.

mary in
Thursday, January 31 at 11:59 AM

Do you really need a # ?  If the shoe fits ,Which # would you like ?

RDS in
Thursday, January 31 at 03:03 PM

SDV:Aren’t RDS and Mary ALWAYS the two bloggers to pull the old chestnut about class-envy, out of the bottom of their bag of tricks and illusions? Just what “class “is there to envy in her above post? Low class envy? For an intersting read on Republican Class envy,go to Huffington Post,a new piece by Joseph Palermo. Quite a good read,methinks.

ddrb in
Thursday, January 31 at 03:08 PM

...using a ‘low wage/low benefit’ model

Let’s see. The lowest wage would be zero and the lowest benefit would be zero so the optimum model would be 0 wage/ 0 benefits.

There’s another name for that model. Ummmm..., oh yeah, is called....

SLAVERY!

Why should the profits of multinational corporations take precedence over the quality of life for so many of the world’s poor? ~ Jill A. Bolstridge

Ken V in Texas
Monday, February 04 at 02:45 PM

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