Comments on: ACCESS TO GOOD FOOD, DRUGS, AND MEDICAL CARE http://www.mikecritelli.com/2007/11/20/access-to-good-food-drugs-and-medical-care/ Mike Critelli's Blog Mon, 01 Dec 2008 19:26:41 +0000 http://wordpress.org/?v=2.3.3 By: Steve http://www.mikecritelli.com/2007/11/20/access-to-good-food-drugs-and-medical-care/#comment-1716 Steve Tue, 27 Nov 2007 20:58:34 +0000 http://www.mikecritelli.com/2007/11/20/access-to-good-food-drugs-and-medical-care/#comment-1716 I wonder if one of the principal reasons why pharmacies and groceries and other 'basic service' businesses do not locate in places like NYC, center city Philadelphia, Washington DC, etc. is the lack of affordable real estate to support these types of businesses? Rents have gotten so high that these thin-margin businesses, many of whom need a lot of square footage to be profitable, cannot exist - regardless of the customer base. Another factor, especially in the 'minute clinic' realm is the lack of payor participation in some geographical areas. We were shocked when we moved from 'backwater' southeastern VA, where there are many Patient First Urgent Care centers and hospitals who co-locate an Urgent Care center with their ER to 'sophisticated' Philadelphia, where these are virtually non-existent. When we asked doctors why, they said it was because the prevalent health insurance company, Independence Blue Cross, did not support or cover these clinics, making them untenable. I wonder if one of the principal reasons why pharmacies and groceries and other ‘basic service’ businesses do not locate in places like NYC, center city Philadelphia, Washington DC, etc. is the lack of affordable real estate to support these types of businesses? Rents have gotten so high that these thin-margin businesses, many of whom need a lot of square footage to be profitable, cannot exist - regardless of the customer base.

Another factor, especially in the ‘minute clinic’ realm is the lack of payor participation in some geographical areas. We were shocked when we moved from ‘backwater’ southeastern VA, where there are many Patient First Urgent Care centers and hospitals who co-locate an Urgent Care center with their ER to ’sophisticated’ Philadelphia, where these are virtually non-existent. When we asked doctors why, they said it was because the prevalent health insurance company, Independence Blue Cross, did not support or cover these clinics, making them untenable.

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