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Article

Title: Paper? Plastic? Penicillin?

Author: Whelan, David Article Type: Company
Source: Forbes, v180 n12 p74(2) Publication Date: Dec 10, 2007
  ISSN: 0015-6914
URL of Publication: http://www.forbes.com

RediClinics provide fast treatment for simple ailments right within the drugstore. They are open seven days a week, paperless, and prices are clearly displayed. Webster Golinkin, the CEO of RediClinics, plans to open 500 clinics by 2010 with equity capital from AOL founder Steve Case. The clinics' original clientele was low-income, which posed problems as many wanted to pay with Medicaid coverage that the clinics did not accept. The company then decided to target more affluent customers, and has argued to employers that the clinics' services are cheaper than the equivalent at a traditional doctor's office. RediClinic is now trying to strike deals with insurance companies, and has succeeded with Aetna and Medicare, though avoiding HMOs presents problems. The company is losing money because of high start-up costs and staff expenses. Some states have laws that discourage such clinics, and the American Medical Association has called for investigations into the relationship between such clinics and the retailers in whose stores they are housed. There are several other retail clinic operators, and they are beginning to encroach on each other's territory. RediClinic would like to remain independent of any particular drug store chain, though it may soon have a tie-in with Rite Aid, which does not yet have clinics in its stores.

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RediClinic LLC

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