Healthcare Insights
How many retail clinics are in the U.S.?
Across the healthcare space, patients are increasingly seeking care that offers convenience, cost savings, and flexibility. Retail clinics located in stores like CVS, Walgreens, and Walmart are uniquely poised to deliver in these categories – and the data show more patients are embracing their approach to care.
These walk-in outpatient clinics entered the healthcare landscape in the early 2000s as an accessible, low-cost alternative to physician’s offices, urgent care centers, and emergency rooms (ERs). Today, retail health clinics can be found in drugstores and supermarkets in nearly every state.
Despite their popularity, however, these clinics face significant challenges. In 2024, several major retailers announced clinic closures due to profitability concerns, reflecting the tough realities of sustaining operations in this complex sector.
Using data from Definitive Healthcare’s ClinicView product, we compiled a list of retail clinics in the U.S. in 2024. Keep reading to find out where these clinics are located and how retail clinics differ from other types of outpatient care.
Percentage of retail clinics by U.S. region in 2024
Fig. 1 – Data from Definitive Healthcare’s ClinicView product. Based on the number of active retail clinics tracked as of July 16, 2024.
There were 1,733 active retail health clinics in 43 states as of July 2024, down from 1,801 in 2023. Most retail clinics in the U.S. are in the Southeast (34.5%) and the Midwest (26.6%). The West (9.7%) has the fewest retail clinics. Half (50.1%) of all retail clinics in the nation operate in seven states: Texas, Florida, Ohio, Georgia, California, Illinois, and Tennessee. Texas alone operates 10.9% of the nation’s retail clinics.
| Rank | CBSA | % of locations | # of locations | Explore dataset |
|---|---|---|---|---|
| 1 | Chicago-Naperville-Elgin, IL-IN | 5.70% | 99 | Explore |
| 2 | Atlanta-Sandy Springs-Roswell, GA | 4.90% | 85 | Explore |
| 3 | Dallas-Fort Worth-Arlington, TX | 4.00% | 70 | Explore |
| 3 | Phoenix-Mesa-Chandler, AZ | 4.00% | 70 | Explore |
| 5 | Houston-Pasadena-The Woodlands, TX | 3.70% | 64 | Explore |
| 6 | New York-Newark-Jersey City, NY-NJ | 3.10% | 54 | Explore |
| 7 | Washington-Arlington-Alexandria, DC-VA-MD-WV | 3.10% | 53 | Explore |
| 8 | Nashville-Davidson--Murfreesboro--Franklin, TN | 3.00% | 52 | Explore |
| 9 | Cincinnati, OH-KY-IN | 2.60% | 45 | Explore |
| 9 | Los Angeles-Long Beach-Anaheim, CA | 2.60% | 45 | Explore |
Fig. 1. Data is from Definitive Healthcare’s ClinicView product. Data is accurate as of July 2024.
Nearly all (96%) retail health clinics are in urban areas as opposed to rural areas. This makes sense from a business perspective as retailers want to reach as many customers as possible. Metropolitan areas with the highest numbers of active retail clinics include:
- Chicago, Illinois
- Atlanta, Georgia
- Dallas, Texas
- Phoenix, Arizona
- Houston, Texas
- New York, New York
- Washington, D.C.
- Nashville, Tennessee
- Cincinnati, Ohio
- Los Angeles, California
How big is the retail health market?
The retail health market in the U.S. is substantial, with a market value estimated between $2.06 billion and $2.79 billion in 2023. It’s expected to reach between $4.03 billion and $6.36 billion by 2030, with a projected CAGR ranging from 10.67% to 12.5%.
Major retailers like CVS Health, Kroger Health, and Walgreens dominate this market. In 2024, these large chains controlled more than 80% of retail health clinics, with CVS Health (MinuteClinic) leading with 1,028 locations, followed by Kroger (The Little Clinic) with 226 locations, and Walgreens (Village Medical) with 173 locations.
Health systems, hospitals, and physician groups also operate within the retail clinic space, either through partnerships with existing chains or by taking over ownership from large retailers. For example, Advocate Health and Kaiser Permanente have embraced this way of delivering convenient medical care, partnering with Walgreens and Target, respectively.
Market shares of the largest retail clinics in 2024
Fig. 3. Data from Definitive Healthcare’s ClinicView product. Based on the number of active retail clinics tracked as of July 16, 2024.
Retail healthcare trends to watch
The expansion of retail health is fueled by factors like the convenience of accessing medical care in retail settings and the expanded range of services offered by these clinics. However, the retail healthcare market isn’t without its challenges. In 2024, major retailers like Walmart and Walgreens announced plans to close clinics due to concerns over profitability. Walmart will close all its retail health centers, while Walgreens now plans to shutter 160 VillageMD clinics. These recent closures underscore the need for retail clinics to find sustainable business models to ensure success within the broader healthcare ecosystem.
Retail clinics operate on narrow profit margins despite high patient volumes; the revenue per visit may not always cover the costs of operation, including staffing, overhead, and equipment. Additionally, they face a shortage of medical workers and competition from traditional players like primary care physicians. Complex healthcare regulations and reimbursement structures add another layer of difficulty. While retail clinics offer convenience and expanded healthcare access, achieving profitability and sustainable operations can be challenging due to these factors.
What are retail clinics and what do they treat?
Retail clinics are outpatient care clinics located in drugstores, grocery stores, and other retail settings. These walk-in clinics provide basic, nonemergent care for a limited range of health conditions, from minor illnesses and injuries to preventive care like vaccinations and physical exams. They are staffed by nurse practitioners (NPs) or physician assistants (PAs). Most retail clinics accept insurance plans and offer self-pay options with transparent and fixed pricing, making them attractive to cost-conscious consumers.
How do retail clinics differ from urgent care centers?
Retail clinics and urgent care centers are grouped together as convenient care clinics because both offer extended hours and accept walk-in appointments. The main difference between retail clinics and urgent care centers is the level of care that they provide. Retail clinics treat a limited range of minor, acute conditions, such as allergies, colds, and infections.
Urgent care centers, which have on-site diagnostic equipment and procedure rooms, can offer a broader range of care for non-life-threatening conditions that need immediate attention, such as splinting and casting for broken bones or minor laceration and wound repair.
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