CVS Keeps Shuttering Walk-in Clinic Sites in Utah

As reported by GlobeSt, CVS Health (CVS) is closing its final MinuteClinic locations in Utah this week, part of a broader effort to adjust to shifting consumer habits and other challenges.

End of An Era

MinuteClinic—CVS’s chain of walk-in centers offering treatments and vaccinations—once had more than 1.1K locations nationwide. 

The Utah closures signal the latest contraction in a network that has been diminishing as CVS pivots toward other growth strategies. 

Earlier this year, CVS closed 25 MinuteClinic sites in Los Angeles, mirroring industry-wide challenges faced by traditional pharmacies.

Retail Pharmacy Challenges

CVS and Walgreens (WBA) cited rising competition and a decrease in prescription reimbursement rates as key factors driving store closures. 

Meanwhile, industry rival Rite Aid has been hit even harder, recently filing for Chapter 11 bankruptcy. 

Overall, retail pharmacies are grappling with how to adapt to evolving consumer preferences, particularly the shift toward e-commerce platforms like Amazon (AMZN).

By The Numbers

The closure trend disproportionately affects communities with high poverty rates. 

A Health Affairs study found that from 2011 to 2021, these areas suffered a 34.3% net loss in pharmacies, compared to a 28% decline in wealthier areas. 

Independent pharmacies were hardest hit, with nearly 39% closing over the same period.

Looking Ahead

The closures of MinuteClinic sites and other retail pharmacies underscore the challenges of operating brick-and-mortar healthcare facilities in a digital age. 

As competition intensifies, major pharmacy chains may increasingly focus on e-commerce and other innovative solutions to sustain growth.

It remains uncertain whether CVS or Walgreens will need to shut down additional locations beyond the 2.1K planned closures.