Rite Aid makes big moves to expand healthcare offering in 3Q

CAMP HILL, Pa. — Rite Aid's RediClinic division has successfully expanded into the Baltimore and Philadelphia markets with 18 locations, and will be moving into the Seattle market in the next few months, Rite Aid announced during its third-quarter conference call Thursday. Rite Aid is planning to field 35 Rediclinics in these three markets by early Spring in addition to expanding its RediClinic presence in the Texas market. 

 

(For Rite Aid's financial results, read Rite Aid raises fiscal guidance following positive Q3 sales increase of 5.3%.)

 

"We have added our first RediClinics to Rite Aid stores to further expand the level of care that we can provide to our customers," Ken Martindale, Rite Aid president and COO, told analysts Thursday morning. "We're making excellent progress in our strategy to introduce new programs that further expand our healthcare offering."

 

As part of several other key healthcare initiatives, including the Rite Aid Health Alliance and Rite Aid's HealthSpot telehealth kiosks, RediClinic helps set Rite Aid up to be a key player in the delivery of health care into the next year. 

 

"[With Rite Aid Health Alliance], we're now in seven pilot projects across the country with large health plans directly integrated into their healthcare model for chronic and poly-chronic patients," said John Standley, Rite Aid chairman and CEO. "That just shows you how connected we are getting into healthcare delivery in our stores," he said. "If you look at broader trends, we really believe that in the long-term, healthcare delivery is going to be a retail-driven model — it is going to be driven by consumer choice. 

 

Another initiative that is squarely positioning Rite Aid as a provider is its third-quarter partnership with HealthSpot on its telehealth kiosks in three Ohio markets. "Through these conveniently accessible health stations, customers will be able to use video conferencing and interactive medical devices to connect with medical professionals and be treated for common health conditions," Martindale said. "A key benefit is that most insurance plans will be accepted for these appointments."

 

Also in the third quarter, Rite Aid launched Vaccine Central to raise awareness around all of the inoculations available through Rite Aid. "Customer response and engagement through Vaccine Central has been very positive thus far and we believe that this program further demonstrates how committed we are to actively working with our customers to keep them well," Martindale said. 

 

And during the call Rite Aid announced pending improvements to its Rite Aid "Quit For You" smoking cessation program. "This free program leverages the counseling skills of our pharmacists to help customers develop and complete a personalized quit plan," Martindale said. For the New Year, Rite Aid is improving its Quit For You program with such features as personalized text messaging, a video tutorial on its site, an evalution tool to identify optimal smoking cessation therapies and the addition of a quit calendar. 

 

Finally, Rite Aid also is boosting its customer engagement across the front end of the store through the addition of 50 Wellness stores with expanded beauty departments that feature a broader selection of prestige brands and specially-trained beauty advisers. "Much like our Wellness Ambassadors, our Beauty Advisors are positioned to further engage customers," Martindale said. "And they achieve this through product demonstrations, helpful tips and personalized service."