Hospital administrators ask:  "Why should we consider a fitness center?" and "Why do we need one now?" Just a few years ago, a hospital-owned fitness center was a daring concept. Few middle-aged and older adults exercised, and many commercial health clubs were already open.

Yet the hospital fitness industry has grown to over 1,800,000 members in 700 communities by addressing a previously unmet need - fitness for people over 40. Many in this age group feel well-served by commercial clubs, but even more do not. Only a hospital has the skills, resources, and public trust to serve them. At the same time, expanding the continuum of care requires a more positive, less costly venue than the hospital itself.

As these two needs intensify, the demand for hospital fitness centers continues to grow. And there are strong financial, clinical, and public service incentives for hospitals to meet this demand.

HOSPITAL FITNESS CENTER OBJECTIVES

Stable Self-Pay Revenue

At most large medical fitness centers, over 80% of revenue and profit come from self-pay membership fees and wellness services. In a managed care environment, this revenue stream can be much more stable than reimbursements.

Over 85% of large new centers generate positive cash flow within three years. Earning over $500,000 annually is an attainable goal. Today hospitals need these funds to support the many activities that cannot support themselves. Most importantly these profits accrue:

• Without competing for patients
• Without oversight by a third-party payer
• Usually exempt from taxation

Clinical Services

Medically-based fitness centers enhance clinical services by extending the continuum of care through an array of rehabilitation and tertiary prevention programs. With proper planning and management, these centers:

• Become outpatient care magnets, producing ongoing referrals to the hospital.
• Improve facilities for physical, occupational and aquatic therapy, bringing more referrals and greater patient compliance.
• Augment cardiac, orthopedic and other rehabilitation programs, even assisting in cancer and stroke recovery.

Community Health

Because of the large market of well people looking to stay well, hospitals with fitness centers experience significant gains in awareness and image in the community. Everyone benefits when people view the hospital as a place to go to stay well, not just a place to go when they are sick.

Hospital fitness centers expand opportunities for stress testing, cholesterol screening, weight management, diabetes and other nutritional counseling, and pre- and post-natal exercise. For populations at risk, a wide range of prevention activities has been successful.

Programming for healthy seniors, as well as arthritis and osteoporosis sufferers, leads to many more years of active and independent life.

Before deciding that a fitness center is right for your hospital, we suggest you consider these
Key Issues.