THE EVOLUTION OF THE FITNESS INDUSTRY PRESENTED BY BILL MCBRIDE
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1 THE EVOLUTION OF THE FITNESS INDUSTRY PRESENTED BY BILL MCBRIDE
2 BILL MCBRIDE PRESIDENT + CEO Bill is a health club industry veteran leading and managing all aspects of our medical fitness centers, commercial health clubs, community centers and corporate fitness centers.
3 JILL KINNEY CHAIRMAN Jill Kinney is considered an industry leader in the world of health and fitness. As the Founder for Club One, she built the company into a $95 million dollar business with over 100 locations. BILL MCBRIDE PRESIDENT + CEO Bill is a health club industry veteran leading and managing all aspects of our medical fitness centers, commercial health clubs, community centers and corporate fitness centers. CAREY WHITE CFO Carey White served as CFO for Club One. He has has served as CFO, CTO, and controller for companies ranging from 25,000 employees to early-stage startups.
4 ACTIVE WELLNESS IS A MANAGEMENT COMPANY SPECIALIZING IN FITNESS & WELLNESS SERVICES.
5 HEADQUARTERS Active Wellness is a California based company FOUNDED In 2014, Bay Area locals and fitness industry veterans, Jill Kinney, Bill McBride, + Carey White EMPLOYEES 1,300 SITES 3 commercial, 52 managed corporate, residential, community, and medical fitness centers MEMBERS 105,000 OPERATIONAL REACH 10 States (AZ, CA, FL, IL, MA, MN, NY, OH, TX, PA) KEY PARTNERS St. Joseph Health, Tri-City Medical Wellness Center, Motorola Solutions, NXP, Honda, CBRE, Juniper Networks and The Irvine Company among others MANAGEMENT SERVICES Fitness Center Management, Design Services, Marketing & Graphic Design, Result-Based Programming, Corporate Wellness, Medical Integration, and Technology Solutions
6 N A T I O N A L B U S I N E S S N E T W O R K
7 IBM WATSON FROM FUTURISM Human experts at the University of North Carolina School of Medicine tested Watson by having the AI analyze 1,000 cancer diagnoses. In 99 percent of the cases, Watson was able to recommend treatment plans that matched actual suggestions from oncologists. Not only that, but because it can read and digest thousands of documents in minutes, Watson found treatment options human doctors missed in 30 percent of the cases. The AI s processing power allowed it to take into account all of the research papers or clinical trials that the human oncologists might not have read at the time of diagnosis.
8 MEN & WOMEN IHRSA RESEARCH According to IHRSA s Consumer Report Health Club Membership: Men = 49.8%. Women = 50.2%. Men are drawn to multipurpose clubs, boot camps and sports-specific clubs in higher numbers than women. Both genders belong to a range of facilities, with more women belonging to YMCAs and yoga studios.
9 GENERATIONS CLUB INDUSTRY ANTHONY DOMINIC 1/18/18 Gen Z (6 to 18) represents 15% of all health club members with Guardians paying 27% belong to JCCs and YMCAs They are Interested in boxing, yoga and indoor cycling Members under 13 only visited clubs 65 days a year visited 78 days per year. #5 Aquatic Exercise #4 Cross-Training-Style Workouts #3 Cardio Kickboxing #2 Dance, Step & Other Choreography #1 High Impact/Intensity Training
10 TOP TRENDS Patient monitoring has the potential for cost reductions devices & biometrics Facial recognition Bio-Metric Data beyond wearables
11 TOP TRENDS THEPTDC.COM Silent Generation: 70 s & 80 s in Age are a fast growing Personal Training base. They have 1/3 rd of all of the wealth Baby Boomers now in their early 70 s control 50% First Impressions matter. Stay off the phone. Don t assume. Don t expect them to change their concerns. Don t treat them as old Avoid crowds, loud, inappropriate music and complicated instructions Focus on fun Athletic Fit Independent Frail Dependent Fears: Falling & Loss of Stamina
12 NOTEWORTHY NEWS The US Economy is in for a good year 2.9% GDP growth CVS buying Aetna Amazon, JP Morgan & Berkshire to enter the healthcare space disruptive. Technology to provide simplified, high-quality health care for their employees and their families, and at a reasonable cost. They said the initiative would be a long-term effort free from profit-making incentives and constraints Apple recently announced that it s starting a trial enabling US customers to automatically download and view their medical records using their iphones through the company s Health App
13 NOTEWORTHY NEWS Obamacare is here to stay for now Congress isn t expected to revisit anytime soon. There has been robust enrollment for 2018 Legalized Marijuana won t pass this year on the federal level, but it is expected to eventually pass federal regulation with both parties supporting. Currently 29 states have some form of legal cannabis legislation Shortage of skilled labor
14 2027 FORCAST (Kiplinger Letter) Americans will be a healthier people overall in 2027 Health Care advances screenings, gene editing, DNA sequencing Personalized Medicine Cures could be within reach for: Cystic fibrosis, Huntington s disease, hemophilia, sickle cell anemia and others Cancer no cure within a decade but promise with immunotherapy drugs
15 2027 FORCAST (Kiplinger Letter) Lab grown body parts will be widespread in a decade Cell therapy is promising Expense is still a big issue on new therapies expect to continue to rise More and better food options for all
16 PRESCRIPTION for ACTIVITY TAKS FORCE
17 O U R S E R V I C E S We have extensive experience as owners, developers and operators of fitness clubs for over 30 years. Our projects include award-winning commercial fitness centers, community centers, medical fitness centers, corporate fitness centers and specialty studios throughout the US. As your expert partner, we provide turnkey, customized support. Business Planning Market Analysis Program Development Site Selection Design Regulatory Issues Financing Financial Pro Formas Development Schedule Equipment Procurement Marketing + Sales Management Services Staffing Financial Management Technology + Administration Service Excellence
18 FITNESS CENTER MANAGEMENT EXPERTISE Compelling + Cutting Edge Programming Technology + Touchpoints Corporate Wellness Seamless Integration Training + Development Sales + Marketing Equipment Procurement, Design + Development
19 ACTIVE S DIFFERENCE Commitment & success in client relations High customer satisfaction Club network for programming innovation Fitness & group fitness programming Integrated health & wellness programs Acquisition & retention platforms Member communication & marketing expertise Design & development Asset management & inventory software Equipment maintenance, procurement & installation Staff training, management & development Seamless fitness center management services
20 OUR FITNESS APPROACH INCLUDES EXECUTING FITNESS PROGRAMMING FOR THOUSANDS OF MEMBERS ACROSS 10 STATES.
21 FITNESS + WELLNESS AT THEIR FINGERTIPS
22 TURN-KEY MARKETING Communication strategy Digital signage Marketing toolkit Health promotion content On-demand education Social Media best practices Video content
23 FITNESS CENTER MANAGEMENT SERVICES Best in Class Staffing Exceptional Customer Service Compelling + Cutting Edge Programming Innovative Technology Seamless Integration + Turnkey Administration Training + Development Sales + Marketing Expertise Equipment Procurement, Design + Development Financial Management
24 F I T N E S S W E L L N E S S S O L U T I O N S FITNESS PROGRAMS WELLNESS PROGRAMS HEALTH MANAGEMENT Design Expertise Certified Trainers Group Exercise Aquatics Mobile Fitness Lifestyle Coaching Injury Prevention Weight Management Sports Conditioning Personalized Dashboard Mobile Challenges Nutrition Programs Weight Management Incentive Tracking Wellness Toolkit Health Library MINDBODY Health Assessment Biometric Screenings High-Risk Intervention Integrated Program Design Rewards Management Incentive Management Disease Management Coaching Comprehensive Reporting
25 L I V E W O R K S H O P S In addition to exercises programs, Active Wellness offers health related clinics and workshops covering Wellness, Fitness, and Nutrition Topics. The following are sample presentation topics: Wellness Topics Energy Management Knowing how to maximize our energy levels daily for maximum performance can be challenging. Learn different aspects of energy and energy management, and techniques to improve energy for maximum daily performance. Truth About Men s Health We ll investigate important truths about health related topics specific to men, take a look at the health challenges men face, top causes of death along with prostate cancer and prevention techniques. Fitness Topics Posture-perfect Desk Stretches Learn the key to keeping good posture throughout the day and its importance for long term health and wellness. Functional Training Learn how functional training can improve coordination and functionality of the movements in your daily life. Nutrition Topics Nutrition for Health, Performance & Productivity Learn to eat well in order to be well through nutrition,stress and strategies to eat healthy no matter your surroundings. Mindful Eating Discover the difference between hunger and appetite, what may trigger unhealthy eating and strategies on how to create a MINDful plate.
26 F I T N E S S + W E L L N E S S D A S H B O A R D Custom Branding Compatible with tracking devices Quarterly Challenges Health Assessment & Progress Reports Health Library On-demand Education Customizable Branding Mobile App
27 M O N T H L Y + Q U A R T E R L Y P R O G R A M M I N G Fitness Workshops Health Education Seminars Activity Challenges Walking Programs Weight Loss Programs Recreational Activities Support with Events
28 MEDICAL INTEGRATION We partner with healthcare organizations to offer fitness and wellness services that support their communities in living the best life possible. Employee Wellness - Walk the Walk Itrim - Healthy, Active, Sustained Weight Loss Monj - Make Life Delicious Next Step - Post Physical Therapy PREP - Physical Referral Exercise Program Step by Step - Parkinson s Mobility Young at Heart - Cardiac Rehabilitation Arthritis Aquatics - Warm Water Therapy Diabetes Wellness - Re-energizing Your Lifestyle Cancer Fitness - Caring, Personalized Support
29 MEDICAL FITNESS APPROACH Collaboration with medical & wellness services Expand hospital brand Patient acquisition & retention Cost avoidance Integrated medical fitness Utilize wellness technology
30 MEDICAL INTEGRATION PROGRAMS
31 AFFORDABLE CARE ACT The Affordable Care Act increases the maximum permissible reward under a health-contingent wellness program from 20% to 30% of the cost of health coverage. Participatory Wellness Programs Health-contingent Wellness Programs Activity-only Outcome-based
32 EXAMPLE #1
33 GENERAL PHYSICIAN REFERRED EXERCISE PROGRAMS HISTORY OF P.R.E.P. Atlantic Coast Athletic Clubs (ACAC) Fitness & Wellness Centers are one of the innovators in exercise referral programs. With ACAC s model General Physician Referred Exercise Program (PREP) patients pay $60 for 60 days of professional exercise advice at ACAC. If they decide to join permanently, the $60 is applied to the membership.
34 WHY IS THIS IMPORTANT? These type of programs establish relationships with the medical community which is a viable yet often untapped referral source Creates a relationship with the member through intrinsic motivation, which has been shown to be much more powerful than economic incentives for retention You re changing lives and that reconnects your staff to a higher value system, in contrast to simply selling memberships
35 STRATEGIES TO CONNECT WITH THE MEDICAL COMMUNITY Befriend the office manager or front-desk person Host a dinner or reception at your club Encourage medical professionals to visit your club Attend events where you know health care providers will be present Hire a liaison with experience selling to doctors
36 THE PITCH Start with the Science Explain Your Value Be Ready for Questions Talking points Research Case studies
37 EXAMPLE #2
38 HEALTHWAYS SILVERSNEAKERS ABOUT The SilverSneakers Fitness program is the nation s leading fitness program designed exclusively for older adults. More than 65 Medicare health plans offering the program as a benefit to members across the nation.
39 PROVEN BENEFITS TO YOUR MEMBERS Programming and group dynamics tailored for an underserved market Fewer hospital admissions Lower medical care costs Significant reductions in overall costs
40 THE POWER OF HABIT
41 BENEFITS TO YOUR HEALTH CLUB Additional revenue Program and marketing support Free class equipment Free training Optimized participation Expanded market reach
42 FACTS ABOUT BABY BOOMERS By 2030, the 65-plus population will double to about 71.5 million, and by 2050 will grow to 86.7 million people (U.S. Census) The 55+ age group controls more than three-fourths of America's wealth (ICSC) Baby Boomers outspend other generations by an estimated $400 billion each year on consumer goods & services (US Government Consumer Expenditure Survey)
43 DO YOU HAVE THE RIGHT CULTURE?
44 THE ACA IS TARGETING YOUNG ADULTS In order for the Affordable Care Act to work, low-risk populations also need to purchase insurance from the exchange As such, in an effort to educate and enroll young adults across the state, Covered California has awarded millions of dollars in grants to attract this demographic (LA Times)
45 FUTURE OPPORTUNITIES Health clubs willing to navigate through the complexities of HIPAA can assist companies with health screening and track employee biometric data. Biometric data thresholds can now be used to offer health coverage premium discounts Beginning in 2018, a 40 percent excise tax will be imposed on the value of health insurance benefits exceeding a certain threshold. The estimated thresholds are $10,200 for individual coverage and $27,500 for family coverage, and an opportunity lies here to work with employers looking to wellness programs as a way to help relieve this burden
46 S E C T I O N B R E A K
47 S E C T I O N B R E A K
48 T H A N K Y O U CONTACT: BILL MCBRIDE Bill.McBride@ActiveWellness.com
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