Monday, July 17, 2017

Retail urgent care: It helps

A new working paper from Diane Alexander, Janet Currie, Molly Schnell examines a much-needed innovation in health care deliveries: 
Retail clinics are an innovation that has the potential to improve competition in health care markets. We use the universe of emergency room (ER) visits in New Jersey from 2006-2014 to examine the impact of retail clinics on ER usage. We find significant effects of retail clinics on ER visits for both minor and preventable conditions; Residents residing close to an open clinic are 4.1-12.3 percent less likely to use an ER for these conditions. Our estimates suggest annual cost savings from reduced ER usage of over $70 million if retail clinics were made readily available across New Jersey.
A few years ago, Boston Mayor Menino prevented the opening of such "minute clinics" at CVS stores primarily to protect Boston Medical Center and community health centers. There's a public choice lesson to be learned.

Solow Model from Wolfram

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