The retail clinic is an innovation that has the potential to improve competition in health care markets. Given concern about inefficient use of the emergency room (ER) increasing health care costs, we use all ER visits in New Jersey from 2006-2014 to examine the impact of retail clinics on ER usage. We find that people residing close to an open clinic are 4.1-12.3 percent less likely to use an ER for preventable conditions and for minor acute conditions. Our estimates suggest annual cost savings of over $70 million from reduced ER usage if retail clinics were readily available across New Jersey.

More on this topic

BFI Working Paper·Oct 14, 2026

Indirect Variational Inference: Applications to Earnings Dynamics

Neele L. Balke, Stéphane Bonhomme, and Thibaut Lamadon
Topics: Economic Mobility & Poverty, Employment & Wages
BFI Working Paper·Oct 12, 2026

Gains from Trade in Gun Policy: A Compensation-Based Benchmark

Brad Shapiro, Sara Drango, and Sarah Moshary
Topics: Fiscal Studies, Health care
BFI Working Paper·Oct 9, 2026

The Gendered Impacts of Perceived Skin Tone: Evidence from African American Siblings in 1870–1940

Ran Abramitzky, Jacob Conway, Roy Mill, and Luke C.D. Stein
Topics: Economic Mobility & Poverty, Employment & Wages