THE TUCK SCHOOL AT DARTMOUTH

MinuteClinic
Bringing Change to Healthcare Delivery

Peter Albro, Bill Aull, Ryan Fitzgerald, John Goldsmith, Tom Harris, Jon Mohraz
11/14/2008

Introduction
In 1999, consumers of the US healthcare industry had a myriad of frustrations to choose from when seeking medical assistance: lack of convenience, no focus on customer service, limitations from insurance providers, billing inefficiency and confusion, and very opaque pricing. One grumbler, Steve
Pontius, had an epiphany during an all too common experience when seeking medical coverage for his kids. After waiting for three hours at an urgent care clinic for what he thought was an ear infection, the physician diagnosed in three minutes what Pontius had predicted. Additionally, only after the visit to the doctor had he figured out that his insurance company did not cover treatment at this particular clinic, so Pontius would have to pay hundreds of dollars out of his own pocket to pay for the visit with the doctor.1 Sensing a business opportunity, Pontius, along with Rick Krieger and Douglas Smith, partnered to start MinuteClinic, the retail medical treatment clinic that is widely regarded as the beginning of the convenient care clinic (CCC) movement. Also known as retail based clinics, these facilities are small medical operations located within a larger retail operation such as Target or CVS.
They offer a limited scope of medical services and are primarily characterized by low fees, convenience, and quick, but reliable service. Consumers are clearing seeing value in their proposition: in only eight years, 800 CCC’s have been established all over the US, and are expected to continue their explosive trend in growth.
US HealthCare Industry Background
According to the World Health Organization’s “World Health Report 2000,” the US spends more annually
on