Tag: Wellness
Medical Fitness Trends
Written on January 30, 2014 at 11:30 am, by John P. Greene
At MedFit Partners, our assessment of market conditions affecting medical fitness centers contains both challenging news and exciting opportunities for 2014.
1. Hospital-financed projects continue an anemic growth trend. During the last 10 years, health care has been undergoing a transformation at all levels. Priorities have shifted from local to regional perspectives as providers have merged to create larger, more efficient systems. In 2009, there were 52 hospital mergers, 72 in 2010, 90 in 2011 and 105 in 2012. The goal is market share with the correct cost mix of physicians and vendors providing outpatient services. In most markets, medical real estate development becomes too expensive and competitive with other medical users to support the returns from a medical fitness center. Without a pressing mandate, it will be difficult to gain hospital executives’ attention.
2. The word wellness is everywhere, especially in major urban markets. There is an amazing range of retail options in fitness, personal services, dining, grocery and information under the wellness umbrella. New entries arrive daily providing a variety of choices and price points for the knowledgeable consumer. Messaging, multi-channel marketing, outrageous customer service and outcome reporting are especially critical today in creating demand and differentiation for the medical fitness product.
3. Collaborations and networks are critical for improving community health. The 2008 and 2013 reports from the Robert Woods Johnson Foundation, Commission to Build a Healthier America, speak to the importance of making healthcare more responsively linked into the development context of our communities. To me, this means more public and private collaborations as well as integrated fitness networks with all types of providers. Just as there are “food deserts†there are “medical fitness deserts†that need our services to improve community health. Our goal should be to substantially increase the national fitness membership demand above the 20 percent participation rate.
4. Prevention and fitness under Accountable Care Organizations (ACOs) may provide opportunities for medical fitness centers. Obamacare supports the creation of larger networks of insurers, hospitals, physicians and providers under ACOs. A limited number of trials are underway, providing medical coverage to a large group of lives paid under a bundled provider payment model. If the goal is to reduce the demand for medical services by managing chronic issues, what is a reasonable amount that could be allocated to prevention and fitness services provided by a vendor? If the average per capita medical cost in the United States is $8,601, what portion should cover wellness activities to reduce this number? This critical question needs to be answered by medical fitness center member research.
5. Orthopedic specialists and their ancillaries will continue to be major champions of medical fitness, but in smaller, more integrated settings. Driven by demographics, more active lifestyles and obesity, the demand for orthopedic services will continue at high levels, providing pre- and post- treatment opportunities. Medical fitness providers should be able to take on the role of outpatient therapy, extending patient care well beyond the typical reimbursement period.
6. Technology and its application to chronic-condition management for all age groups is a critical necessity for all fitness providers. Currently, one out of four adults has multiple chronic conditions—a focus of high-risk management strategies by ACOs. To control medical usage patterns, chronic patients will need to become more physically active under uniform, condition-based exercise guidelines applied through a software solution. Fitness providers will need to have certified personnel capable of translating and applying this technology to the specifics of the consumer and the ACO.
7. Weak economy continues to negatively impact sales and retention. The fitness industry is definitely feeling the impact of the weak economy—14 percent of adults out of work, weak consumer discretionary spending and static real estate prices. Simultaneously, there has been a dramatic increase in the supply of health clubs at all price levels. In some markets, fitness clubs are as prevalent as coffee shops. The result: consumers have a range of choices, and they are willing to try other fitness providers that have excellent staff, programming and clean facilities.
Category: Health & Fitness ~ Trends ~ Uncategorized
Tags: Community Development ~ Development Trends ~ Fitness Centers ~ Healthcare Real Estate ~ Healthclubs ~ Wellness
Delivering Prevention and Wellness under ACA
Written on August 6, 2013 at 10:59 am, by John P. Greene
The Affordable Care Act moves into high gear Oct 1. with the ability for the uninsured to enroll in federal and state health insurance exchanges. For the first time, a one-stop competitive marketplace for health insurance will exist. No longer will pre-existing conditions be a reason for denial of coverage, and lifetime caps on benefits will be a thing of the past. Government subsidies will reduce the premium costs for many.
The 2010 Census estimates there are 48 million uninsured, which is 15 percent of the population. Interestingly, this number is roughly the same number that IHRSA estimates as being healthclub members (50 million). I have to wonder how many uninsured are using their healthcare dollars for membership fees.
With the Act’s emphasis on prevention and wellness, it will be interesting to see what impact it will have on the health and fitness industry and especially, medical fitness centers. I believe it could be huge and that is the reason that clubs, medical facilities, and Ys should be taking the lead in promoting and educating the public and their members about their state’s enrollment process. I would even go so far, as to suggest we offer a free month’s membership incentive to anyone who enrolls in a health-insurance exchange and who provides appropriate documentation as to eligibility. Also, the health and fitness industry should be using its marketing clout to run public service announcements in the local media. Many states have decided not to participate providing a need for greater local activism.
In my opinion, these new enrollees will be a game changer for our industry. For many with chronic health issues, there will be a new emphasis on managing their health. We should be part of the new delivery mechanism of insurers, physicians and health systems. With so many new consumers in the system, communicating and managing health for many will create new opportunities and a new sub-industry. The health and fitness industry must be part of “getting the message out†if its 30,000-plus locations are to have a place at the table.
Category: Management ~ News ~ Prevention
Tags: chronic illness ~ Community Development ~ Health Care ~ Wellness
Benefits of Community College Wellness Facilities
Written on April 23, 2010 at 3:58 pm, by Robin Schuette
In this recessionary climate, new university recreation/athletic facilities will need to depend upon a broader mix of customers beyond students and faculty and embrace the wellness needs of local residents to be economically prudent.
Additionally, the opportunity to provide a facility for corporate wellness programs would benefit a university’s staff and local employers. Students would also be exposed to the lifestyle needs of sound nutrition and regular exercise as part of daily healthful living.
Planned and executed according to our feasibility and business planning process, the center should be self-sustaining and produce a positive cash flow that can benefit other outreach initiatives. The public relations and health cost savings are unique attributes of this concept.
MedFit’s wellness center business model is based upon serving people of all ages and especially those having chronic conditions. These customers are self-referred and self-pay, which is highly desirable for recreational facilities of all types.
Category: Community College Tie-Ins
Tags: Architecture ~ Community Development ~ Feasibility ~ Health Care ~ Human ~ News ~ Wellness
Re-developing Vacant Big Box Retail Facilities
Written on April 23, 2010 at 3:44 pm, by Robin Schuette
Your community has a unique hidden asset, which needs immediate attention. That unique resource is that closed, bland-looking big box retailer or possibly strip center, sitting in front of acres of parking on the main highway of town. Conveniently located to access its 10-mile market area and an instantly recognized location by consumers; these hidden resources are being redeveloped into a range of healthcare uses from medical malls to wellness centers. After redevelopment, they often spur new growth nearby.
What also is of interest is the ability to create a new ambulatory care setting at a lower cost than for a comparable new “Greenfield†type project. In most situations, both acquisition and renovation costs are substantially less, and financing is typically available from the owner or through other economic development programs especially for a new community amenity that our business model provides.
We worked with Altoona Hospital in Altoona, Pa., on the feasibility for this type of project. The Station Mall is an excellent example of the redevelopment of a 1970s shopping center into a new business of medical offices and potentially, a health and wellness center.
Today’s healthcare executives need to simultaneously expand and execute less costly approaches in a consumer-driven healthcare environment with convenient locations and a mix of physician, clinical and wellness services. If your organization has the vision to perceive of these resources as an opportunity, then we can create a program and a facility that works for you.
Category: Real Estate Development
Tags: Architecture ~ Business Planning ~ Careers ~ Community Outreach ~ Feasibility ~ Management ~ News ~ Real Estate Development ~ Wellness