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CVS revealed in a statement on January 30 that it will close 25 of its retail-store-based MinuteClinic locations in Greater Los Angeles in February, leaving just 11 rooftops in the area. The company said the closures will “help support future growth and design the next evolution of community health destinations,” according to reports from the LA Times and Orange County Register. Affected employees who do not find a new position within the company reportedly will be offered severance packages.

Referral partner perhaps: “One of the challenges of the retail clinic model has always been that it’s limited in what it can treat,” says Alan Ayers, MBA, MAcc, president of Experity Consulting and Senior Editor of JUCM. “It was possibly well positioned during the pandemic for respiratory conditions requiring a basic medical exam, simple rapid test, and a script filled on-site, but there is no x-ray and no procedures performed. As a result I’ve always seen these clinics as a source of referrals for urgent care.” CVS made a $100 million investment in Carbon Health a year ago, a full-service urgent care operator, which has about 50 locations in the Southern California market.

CVS Closing 25 Clinics in Los Angeles