Todd Latz, the CEO of urgent care company GoHealth, oversees 126 clinics across the country.
Over the years, he’s watched the business grow, with more and more competition in cities and big investors taking notice.
Here are the biggest threats facing the urgent care market today, as Latz sees it, and what it’ll take to survive.
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Todd Latz had been watching the urgent care industry long before joining on as the CEO of GoHealth in 2015, picking up on what was changing.
Founded in 2013, GoHealth’s model is to collaborate with health systems in each geography. For instance, in New York, it partners with Northwell Health, the largest health system in the state. It has 126 urgent care clinics around the US.
Urgent care is catching on as Americans seek convenient ways to get healthcare. According to the Urgent Care Association, the industry’s trade group, there were 8,774 urgent care centers in the US in 2018. GoHealth has one of the bigger footprints, with 126 locations, while the largest, UnitedHealth Group-owned MedExpress, has 260 locations.
It’s a big business that investors are paying attention to.
In 2017, Warburg Pincus took a majority stake in the urgent-care chain CityMD in a deal that valued the company at a reported $600 million. In June, Business Insider reported that Warburg Pincus struck a deal to combine CityMD with physician group Summit Medical Group, and will own a majority stake in the combined firm. The value of the deal wasn’t disclosed, but
GoHealth, for its part, is backed by private-equity firm TPG.
Read more: Private-equity giant Warburg Pincus just struck a deal to create a huge new doctor group, combining $600 million CityMD with Summit Medical Group
As the field becomes more competitive, there are threats emerging for the urgent-care business. In an interview, Latz laid out what threats urgent care practices are facing, and why evolving the model away from a one-time appointment could be critical to its survival.
The threats facing urgent care as it looks to the future
The inherent challenge urgent care centers face is that they’re a retail experience, made or broken by how satisfied patients are with the experience.
“You’re not beholden to a single brand or to a specific location,” Latz said. “Like many retail businesses, we have to deliver on that expectation every single time, and you can vote with your feet. If you have a bad experience at this one, you can try a different one.”
In the long run, Latz said he sees it as key to make the urgent care experience more connected and personalized to boost loyalty. For instance, GoHealth implemented a way for patients to be remembered in the system soa that if they come back, they won’t need to put in all their information again.
GoHealth is also working to get patients same-day or next-day referrals to specialists with the help of the practice’s health system partner.
The challenge of finding healthcare providers, Latz said, …read more
Source:: Business Insider