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Medical Spa Business Forum > Luxury Medical Services

In this current market it is more profitable to focus on the luxury medical services market or on the mass market due to the new US insurance legislation?

04.17 | Unregistered CommenterWilliam Y

This will definitely be an inflection point and, in my opinion, a good time to think about concierge or 'luxury' services. The amount of pricing pressure that will be inserted into the market with the introduction of Obamacare is vast and will bring a swing towards technology, rapid iteration, and cost reduction. Physicians who are unable or unwilling to respond to this will see an increasing squeeze on their margins.

I'm currently working with medical practices and physician owned spas around the country and we're finding ourselves in uncharted territory. What we are finding is that one size does not fit all. Many private practice physicians have added optional "luxury" services, this caters primarily to an affluent market. Primary healthcare is successful in some markets operating in a membership/monthly fee model. By offering a suite of services that caters a more mainstream patient base, clinic traffic is improved and the quality of care increased compared to clinics that are dependent on third party payers. Transitioning to practices like this is not without risk and requires a business plan that includes highly skilled physicians, significant community outreach, increased hospitality and health care programs that may involve several modalities and practitioners. Hopefully, over time as we are able to educate clientele of the benefits of a membership in neighborhood clinics, health care insurance premiums will be used for chronic, acute or urgent care rather than primary care.

04.21 | Unregistered CommenterMonte

IMHO, most folks in the aesthetic arena (not luxury cosmetics) are frequently primary people & core physicians, who are in a holding pattern while they see how and what areas the new health care act will affect their practices, personal life & bottom line.. That's the feedback I am receiving.

04.22 | Unregistered CommenterD.M.

While the luxury market is tempting, keep in mind that there are many many doctors looking to abandon medicine and enter this field. Competition in this arena will be fierce as new comers look to compete with low prices. Some will do very well while most will fail simply because they don't understand the business and marketing aspect of this type of practice.

Traditional medicine will not be the same for sure. Early adapters to the new system will do well. I remember when HMO's first came into the marketplace in NJ. Most physicians fought it tooth and nail. The few who signed on early made a mint because there was essentially no competition. As it became inevitable that HMO's were the way things were going, the masses of providers reluctantly joined but by then it was too late. The HMO's were no longer scrambling for providers. They had all the patients and called the shots, paying doctors pennies on the dollar.

My advice is: Enter the luxury market only if you have a passion for doing this, not simply because you think you will make more money. If you love practicing medicine, look at the opportunities that the new healthcare act offers. While everyone else is kicking and screaming about the change, I'm sure the government is looking for providers who are willing to play, and if history repeats itself, the early birds will get the worm.

04.24 | Unregistered Commenterhwsong

The aesthetic market is strong-and predicted to continue to grow. One of the most innovative and successful ways to manage innovation, growth and financial security is through the development of wellness "villages". These villages have shared marketing, records, concierge services, etc. This is a unique area of opportunity that Monte Zwang of Wellness Capital Management and I are currently speaking on a great deal and helping develop financial, service and marketing outreach plans for with providers.

05.1 | Unregistered CommenterPattB

The luxury medical market will continue to grow and outpace traditional medicine significantly. Current health care legislation is one reason; fee for service and concierge medicine is another reason; technology is also driving the luxury medical market and genetics, stem cell therapy and personalized medicine will all positively affect the luxury medical market. Aesthetic medicine too will fuel the luxury medical market for many years.

05.5 | Unregistered CommenterPDeig

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