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·Mar 27, 2025

The Value of Medical Innovation in the Fight Against COVID-19 in the United States

Tomas Philipson, A. Mark Fendrick, Yier Ling, Eric Sun, and James Williams
Topics: Health care
BFI Working Paper·Mar 19, 2025

The Impact of Employment on Partnerships: Evidence from a Refugee Settlement

Yueh-ya Hsu, Reshmaan Hussam, Erin M. Kelley, and Gregory Lane
Topics: Employment & Wages
BFI Working Paper·Mar 10, 2025

The Rise of Healthcare Jobs

Joshua Gottlieb, Neale Mahoney, Kevin Rinz, and Victoria Udalova
Topics: Employment & Wages, Health care