Photo: DocGo
Mobile clinics could make Dollar General a medical destination point
Dollar General is testing mobile health clinics outside three stores in Middle Tennessee as the chain pursues its goal of becoming a major player in the retail healthcare sector.
The dollar store giant is partnering with DocGo, which operates mobile clinics, to offer a variety of preventive, urgent and chronic condition care. Medical staff provide services including physical examinations, vaccinations and school sports physicals. Dollar General first announced plans to work with DocGo last year.
The mobile clinic will operate between 10 and eight local time, setting up shop outside the Dollar General on Highway 48 in Clarksville on Sundays and Mondays. Another Clarksville store will host the mobile clinic on Wednesday and Thursdays before the DocGo unit moves to Cumberland Furnace on Fridays and Saturdays, reports WSMV4.
The mobile clinics, which accept Medicaid/TennCare, Medicare and other forms of health insurance, offer scheduled appointments on the DG Wellbeing site or by calling an 800 number. Walk-ins are also accepted.
“These clinics demonstrate our ability and desire to work with our customers to bring affordable health and wellness closer to home while equally establishing Dollar General as a trusted partner where customers can access health services,” said Dr. Albert Wu, Dollar General’s chief medical officer, in a statement.
Dr. Wu, who was named Dollar General’s chief medical officer in July 2021, has been tasked with establishing the retailer as a destination point for the chain’s customers, many of whom live in areas that lack access to healthcare products and services.
At the time of his hiring, Dollar General said he would orchestrate “healthcare product and service providers to build a comprehensive network of affordable services” for the retailer’s customers. The company, at the time, did not offer specifics on the types of services it might bring to market.
The chain has focused on expanding its selection of healthcare products to customers through its DG Wellbeing initiative.
CEO Jeff Owen, speaking in December on Dollar General’s third quarter earnings call, said, “The initial focus of this project is an expanded health offering, which consists of approximately 30 percent more feet of selling space and up to 400 additional items as compared to our standard offering.
DG Wellbeing had been rolled out to more than 4,000 stores by the end of 2022.
Discussion Questions
DISCUSSION QUESTIONS: Do you expect medical clinics will be significant to Dollar General’s strategy to become a health and wellbeing destination point for its customers? What do you see as the pros and cons of using mobile units operated by a third-party?
Poll
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Access to healthcare is a problem in many markets, and offering mobile health services can help. Dollar General’s key strength is broad market coverage especially in small/under-served markets. But while Dollar General has reach, I question whether the Dollar General brand connects to health services. I like the intention, but I wonder if this is the best move for Dollar General or if the health services business is playing to their strongest suit. I don’t think so.
Adding mobility to the equation could help Dollar General differentiate from the vast number of medical clinics opening in this country. I very much applaud the investments retailers are making to bring affordable and accessible healthcare to people, but I suspect we will soon reach the saturation point. CVS, Walgreens, and Walmart have all been opening clinics in many of their combined ~17,000 stores. DG Wellbeing adds another 4,000 clinics, with more of their 18,000 stores to come in 2023. If they all end up opening clinics in just half their respective estates, we are talking somewhere in the neighborhood of 15,000 clinics. I’m not sure there could be enough demand to support 15,000 retail clinics — could there be?
In many DG markets, it’s not just that there is no CVS or Walgreens — it’s that DG is the only retail store other than a gas station. True healthcare deserts with, no surprise, some of the worst health statistics in the country. Something like this is necessary to allow rural communities to function more or less independently and retain population, and it makes more sense for DG to try it than, say, Casey’s or QuikTrip.
This would have been a groundbreaking initiative. If it weren’t for Walgreens’ and CVS’s efforts in the same healthcare space. Don’t forget the expansion of various urgent care chains.
The U.S. healthcare system is broken, and every little bit of access will help. I commend Dollar General. But DG’s two specific days a week offering is limp. It reminds me of those days when doctors traveled from town to town. If it is Wednesday, it must be Dodge City.
There is also the “who do you trust” issue. Walgreens/CVS or Dollar General?
Given Dollar General’s extensive store reach — including in many rural and underserved markets — this could be a great way of improving health access. If successful, it would drive foot traffic to Dollar General locations and would be positive for sales. All that said, the mobile nature of the clinic and the fact that it is operated by a third party makes this a stand-alone offering. It will be interesting to see how Dollar General intends for this to deepen its own involvement in health and wellbeing.
Both companies are giving underserved markets much needed products and services. Big thumbs up. But do they really need each other to do that? I’m having a tough time spotting the the synergies and efficiencies, other than saying if there is a DG store in the neighborhood, it probably deserves a look as an area that could benefit from a new healthcare offering (not already addressed by all the other retailers expanding into healthcare). And if a permanent office isn’t warranted, then mobile makes abundant sense. For now, maybe it’s enough to applaud the fact that underserved markets are getting much needed attention. The competitive marketplace will sort out the details.
Making healthcare more convenient and cost-effective, especially in severely underserved markets where DG has a presence, is a smart strategy. Whether customers will trust DG and a third party when there is aggressive expansion from other brands more well known in the space will be interesting to see.
I believe this fills a space where people have to travel far for medical care. It is a smart idea to fill that gap. I just hope they give it the proper amount of time to prove its viability.
Fascinating development from a discount retailer. Since price is the biggest differentiator at Dollar General, I’d be interested to see how the price of a medical visit compares to convenience based one-stop shops like Walgreens that aren’t specifically value-focused.
I can’t imagine going to a Dollar General health clinic for medical issues. However I could see this playing out positively if they offer a low per-visit flat rate for the uninsured. But I’d need to know the rate per visit with and without insurance to solidify my opinion.
A company that’s brand is based on low prices cost may not be the brand people will want to look to for medical expertise. In this case, the brand is not even the company that is providing the medical expertise. I understand the testing, but don’t see this as ever having a significant part of their offer longer term.
This is a bold move by Dollar General, even if I can’t connect Dollar General to a medical destination. Sure DG has reach and trust, but can it extend that quality into the health arena? The mobile aspect of the model is intriguing and could be a differentiator, but cost and efficiency may be problematic.