Urgent Care Still on Fire

In a recent article, the NY Times restated a fact that we've know for awhile.  The urgent care healthcare segment continues to be Hot.  As noted by the author, Julie Creswell, "The business model is simple:  Treat many patients as quickly as possible."  From this simple approach, the industry has grown to an estimated $14.5 billion business and garnered the attention of commercial insurance companies, regional health systems, local hospitals.  And now..private equity firms.  In fact, PE investors are driving the growth these days.  Of course, expensive ER visits, limited office hours, the more insureds/less doctors conundrum may have contributed to the UC interest and clinic increase.  (~9000 US clinics)

Certainly, well-run platforms are appealing - wonder how many will evolve into a McDonald's type brand?  What do you think?

>>More food for thought:  Race Is On to Profit From Rise of Urgent Care

American CareSource Enters Urgent Care

In 2013, Urgent Care industry revenue topped $14B.  By 2018, revenue is projected to increase to approximately $19B.  Not surprising then...that American CareSource, a network of ancillary healthcare providers, is moving into the urgent care market space.  Their foray begins with the acquisition of two urgent care clinics in the Atlanta metro area.  The Locust Grove and Decatur clinics were previously owned by CorrectMed, LLC.  >>Read more

With the completed acquisition, Dr. Richard Turner, American CareSource CEO, affirms,  

"…we have taken our first important step in entering the urgent care market.  The two centers will be the centerpiece of our strategy to become the high-quality, patient-centric provider of conveniently available affordable urgent care…"

Related:  More Regular Care = Urgent Care Growth

MD Now Urgent Care - 30 sites by 2015

Florida's busy urgent care provider, MD Now Urgent Care, is expanding…again.  With the opening of the eleventh location, it has become the largest independent non-hospital Urgent Care company in South Florida.

The company was established in 2004 and has grown rapidly offering residents of Palm Beach, Broward and Miami-Dade Counties an alternative to a local crowded and costly hospital ER.  The recent opening of its Plantation, FL location fuels its growth plans.  According to MD Now CEO, Dr. Peter Lamelas, company plans include "upwards of 30 Urgent Care Centers throughout South Florida by 2015".

Read more about this growing urgent care provider.

More Regular Care = Urgent Care Growth

The urgent care industry is poised for more expansion driven by the Affordable Care Act, hospital closings, primary care doctor shortage, high Emergency Room costs.  Industry sources expect a steady flow of patients seeking regular care (vs. acute care) to flow into urgent care centers within the next 5 to 10 years.

Dr. Kenneth Palestrant, founder of Physicians Immediate Care in Florida, recognizes this trend.  Approximately, 20% of patients use his five centers to receive primary care.  With ACA implementation, Dr. Palestrant expects more hiring of nurse-practitioner and physician assistants in urgent care to address the gap in primary care.  >>Read more

Source:  MedCity News

How to Minimize Growing Pains

Michael Shafe, MD leads a growing urgent care business, The Urgency Room -  starting and expanding the business to 3 locations within six years.  While growing can be anxiety-ridden, Dr. Shafe reduced some stress by following a roadmap that would apply to other healthcare service businesses.  Check out his Expansion TOP TEN List:

1. Determine what went right and Repeat
2. Ensure business can be replicated
3. Keep locations legally separate
4. Do your research
5. Contract with payers early
6. Prepare financially
7. Hire early
8. Allow adequate time for hiring and training
9. Create a comprehensive Operations Manual
10. Market cost effectively

>>Read more

Funding Continues for Walk-in Clinics

Private equity firms continue funding of healthcare’s urgent care sector.  This ongoing interest is not surprising given 20% clinic growth in the last 4 years*.  MedExpress, an industry leader, currently with over 100 locations, was one of the first to benefit from PE interest when it had only 6 offices.  More recently, sector funding has come from LLR Partners for Physicians Immediate Care and FFL Partners for WellStreet.

Health insurers and hospital systems also recognize the value of urgent care ownership.  However, their acquisition motivation may be slightly different vis a vis private equity firms.  Humana, owner of 330-clinic Concentra, and other insurers appreciate the cost containment potential with urgent care clinics (e.g.:  Per visit: 30-40% less than doctor visit; 80% less than ER).  Hospitals now own 27% of urgent care centers.  While not expected to be a large revenue stream, hospital-owned clinics offer a great source of patient referrals.  >>Read more

*Urgent Care Association of America

NextCare on a Roll in Southwest

October was an outstanding month for NextCare Urgent Care, one of the nation’s largest privately-owned providers of urgent care.  With the acquisition of Access Medical Centers, 9 clinics located in Oklahoma and Texas were brought under the NextCare banner.  Facilities in the Phoenix and Houston areas were also part of last month’s buying spree.

CEO John Julian recently announced a significant recapitalization with BMO Capital Markets positioning NextCare for rapid and continued expansion.

NextCare now operates 69 offices in 7 states including Arizona, Colorado, North Carolina, Ohio, Oklahoma, Texas and Virginia.

Onward and Upward for Urgent Care

Steady Growth...is the trend for urgent care centers in the US - based on the results from the 2012 Urgent Care Benchmarking Study.  Approximate growth from 2008-2010 was 300 centers per year.  In 2011, the growth rate nearly doubled and 80% of urgent care centers reported an increase in patient visits.  The study will soon be released by the Urgent Care Association of America (UCAOA), the industry arm providing leadership, education and resources for its members. 
Source:  Urgent Care Association of America