Attention healthcare professionals!
Are you interested in seeing you practice grow?
Come join us this Friday, March 10th
Aesthetic Practice Growth Symposium
to see Cheryl Whitman.
Topic: Boost Your Bottom Line with a Medical Spa
Date: March 10th
Time: 11:45am- 12:45pm
Location: Broward County Convention Center
1950 Eisenhower Blvd
Ft. Lauderdale, FL
Rooms 122 & 123
Contact: Jennifer Dupuis 1-800-679-1200 X 281
Men's Aesthetic Procedures
Medical Spa Investing
FOR BETTER FISCAL HEALTH:
NOT JUST FOR DOCTORS ANYMORE
By Cheryl Whitman
A few years ago, the term "medical spa" was as foreign to men as Botox®. Today, though, adding the pampering luxe of the spa to the scientifically advanced skincare abilities of a dermatology practice or surgery practice has taken the medical spa mainstream.
According to The International Spa Association's research, medical spas increased by 133% between 1995 and 2000, making them the fastest growing type of spa in the United States. In fact, it is hard to find a place where you can not get pampered. Small towns, large cities, exotic islands, hospitals, and hotels have all succumbed to the allure of the tremendous profits to be gained from this feel better, look better trend.
Medical spas now not only attract males as clients, but also the attention of male business capitalists, investors, and entrepreneurs - who until recently didn't know Botox from Brüt. In fact, even many medical spa clients are becoming the industry's fastest growing financial supporters. For instance, the largest demographic group in the United States, better known as the baby boomers, who flock to medical spas for stress reduction and age management, now also see them as investment opportunities. This trend will continue to grow as investors learn that the same business which erases lines from their faces can also enhance their wallet's bottom lines.
Conversely, those who didn't know the difference between antiaging and free radicals are now clamoring to invest in this new Mecca for their money. Medical spa experts report that new investors are increasingly coming from every background and industry including finance, high-tech, and even public service. Yes, medical spas are not just for doctors any more. Even CPAs, MBAs and JDs are joining those MDs. The anecdotal evidence of plastic surgery and aesthetic advances chronicled in the media and on the internet has given the medical spa an international presence. While the genesis of the aesthetic techniques and Treatments which drive the medical spa happened on the West Coast, the financial support and growth of the medical spa as a business endeavor is focused on the East Coast and in Europe.
But do not rule out physicians as investors. Even doctors whose specialties are entirely outside of the aesthetic arena are embracing the medical spa. They invest in a new spa or add a medical spa component to their practices, resulting in both financial and personal growth. For instance, podiatrists, cosmetic dentists, neurologists, even urologists have found that investing in or adding a medical spa to their practices enhances revenue and adds variety to the tediousness or tunnel-vision of a lifetime practicing the same specialty.
Many physicians who have worked long, unpredictable hours for years find the regular, appointment driven routine of a medical spa not only refreshing, but a boon to having more free time for a private life without sacrificing income. Also, physicians and non-medical entrepreneurs alike are stimulated by the constant evolution of aesthetic therapies and the high-tech equipment used to deliver them.
Are you thinking of opening or investing in a medical spa? If so, you should be able to answer yes to the following questions:
- Are you a hard worker willing to work the hours which meet the needs of other working people- usually 45 hours a week-and not your own?
- Do you have enough money? Do you know if you have enough money?
- Do you have business savvy or a partner who does?
- Do you know how to hire and train a staff of estheticians to work with professional cosmetic physicians?
- Do you know how to motivate a staff?
- Do you know the difference between shiatsu and a sauna?
If you answered "yes, but" to any of these questions, you need the assistance of what has become another burgeoning cottage industry in the medical spa industry-medical spa consultants.
Whether you are a physician adding a treatment room to an existing practice, building a 20,000 square-foot freestanding building, or looking for an investor to partner with, consultants can be your business partner, guiding you through each step of the process from obtaining financing to hiring staff to locating sponsorship.
My firm, beautiful forever, has advised a fire chief, a chiropractor, cosmetic dentists, real estate brokers, cosmetic neurologists, as well as attorneys and physicians. One of my favorite pairings is a physician with an attorney. Each brings diverse yet vital knowledge to the partnership.
Some of the ways a consultant can assist you in your venture are:
Help you choose the best structure.
Maybe you are not sure what kind of spa you would like to open- day, destination, medical. A consultant will help you decide that, based on your location, demographics, available financing and the legalities involved. While there are many cookie-cutter operations, a good consultant will customize your investment to make sure it stands out in the crowd. A day spa set-up deals almost exclusively in aesthetic treatments, which are not covered by insurance. That means fewer administrative headaches. A medical spa offers more serious treatments and invasive procedures which require highly trained professionals at a higher cost.
Advise you regarding how much money you will need.
The minimum cost for a 200 square-foot retail location would most likely be $300,000; but a consultant will tell you how best to allocate that money: whether to buy or lease equipment, how to hire staff, training, and learning the business.
Extending your spa's brand with private label products.
If your name and money are in or on a spa, clients should be taking that name home. How? By developing and investing in a line of personal-brand products-an additional profit center. I strongly advise all my clients to go this route. Not only does it keep your name on the tips of the tongues-and on the faces and bodies-of your clients, but it can also add 30 to 50% to revenues. Every single time a client looks at that product and uses it, he or she is reminded of your spa. If he or she had a good experience at your venue, a private label product with your spa's name and logo will renew that good feeling. We guide owners through developing a line, deciding how much inventory is needed, and training and hiring your staff to sell the line.
Whether or not you hire a consultant, make sure you know what your own goals are. Some investors just want a big financial return. Others want the hands-on experience of running a medical spa. Whatever your goals, work hard and remember that this is a business. It is here to stay. We qualify our clients to ensure their credit ratings are good and that they know how to run a business. We make sure they will be successful. Who knew that feeling and looking good could bring phenomenal returns, both physically and fiscally?
BOTOX® TOP NON-SURGICAL COSMETIC PROCEDURE IN THE US
 From Press Release - Feb 21, 2006
The American Academy of Cosmetic Surgery is pleased to announce the results of its 2005 Procedural Data. This information is collected by polling the Academy's U.S.-based members and for the sixth year in a row, liposuction proved to be the nation's top cosmetic surgical procedure with Botox® injections being the top non-surgical cosmetic procedure.
The report includes data on the prevalence of various cosmetic surgery procedures, with a breakdown of men and women. The survey also showed that of all cosmetic procedures performed, 30% were surgical, with the remaining 70% percent being non-surgical procedures, demonstrating the continued increase in popularity of non-invasive procedures. The increase in non-invasive procedures can be attributed to how quickly they can be done, taking between 10-20 minutes on average to complete a non-invasive cosmetic procedure.
The top four most performed cosmetic surgical procedures in 2005 include:
- Liposuction
- Blepharoplasty
- Facelift and Forehead lift
While the most popular non-surgical cosmetic procedures were:
- Botox® injections
- Restylane/Hylaform injections
- Chemical peels and fat injections.
The 2005 Procedural Data is based on a survey of U.S.-based AACS members completed in December 2005.
The American Academy of Cosmetic Surgery is a professional medical society whose members are dedicated to patient safety and physician education in cosmetic surgery. Most members of the AACS are dermatologic surgeons, facial plastic surgeons, head and neck surgeons, general surgeons, oral and maxillofacial surgeons, plastic surgeons, or ocular plastic surgeons - all of whom specialize in cosmetic surgery.
 Coalition Applauds Bill To Repeal Cosmetic Surgery Tax
Cosmetic Medicine/Plastic Surgery News
Feb, 9 2006
by Lasondra Cooper
American Society of Plastic Surgeons
The Coalition to Stop Medical Taxes applauds the introduction of a bill (A2282) to repeal New Jersey's tax on cosmetic surgery procedures. The tax was enacted in 2004 and has generated much less revenue than originally predicted - a 72 percent shortfall. The repeal bill was introduced by Assemblyman Joseph Cryan, the original sponsor of the cosmetic surgery tax bill in 2004.
"We greatly respect the fact that Assemblyman Cryan has taken this step to repeal this tax," said Bruce Cunningham, MD, and ASPS president. "States around the country are grappling with funding issues. But taxing medical procedures is simply not the answer."
The New Jersey tax set a dangerous precedent when it became the first and only state to tax medical procedures during its 2004 legislative session. The tax was predicted to generate $24 million in its first year, but fell well short of expectations and brought in only $6.8 million. Despite the shortfall, lawmakers in states throughout the country saw a tax on cosmetic medical procedures as a viable means to fill state budget shortfalls. The poor revenue result and administrative challenges of New Jersey's tax illustrated the inadequacy of the law - ultimately none of the states passed cosmetic medical procedure taxes in 2005.
"As a New Jersey citizen I fully appreciate the leadership that Assemblyman Cryan is demonstrating in his proposal to reverse this tax," said Peter Hetzler, MD, and past president of the New Jersey Society of Plastic Surgeons. "As a physician, I am thrilled because the idea of taxing medical procedures made me very uneasy. I was very concerned about the detrimental effects this tax could have on patients, the medical community, not to mention the integrity of the healthcare system."
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