THE EVOLUTION OF THE FITNESS INDUSTRY PRESENTED BY BILL MCBRIDE - - PowerPoint PPT Presentation

THE EVOLUTION OF THE FITNESS INDUSTRY

PRESENTED BY BILL MCBRIDE

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.

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.

ACTIVE WELLNESS IS A MANAGEMENT COMPANY SPECIALIZING IN FITNESS & WELLNESS SERVICES.

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

MANAGEMENT SERVICES

Fitness Center Management, Design Services, Marketing & Graphic Design, Result-Based Programming, Corporate Wellness, Medical Integration, and Technology Solutions

KEY PARTNERS

• St. Joseph Health, Tri-City Medical

Wellness Center, Motorola Solutions, NXP, Honda, CBRE, Juniper Networks and The Irvine Company among others

OPERATIONAL REACH

10 States (AZ, CA, FL, IL, MA, MN, NY, OH, TX, PA)

MEMBERS

105,000

N A T I O N A L B U S I N E S S N E T W O R K

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

• ncologists might not have read at the time of diagnosis.

MEN & WOMEN – IHRSA RESEARCH

• According to IHRSA’s Consumer Report - 2017 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.

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.
• 13-17 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

TOP TRENDS…

• Patient monitoring has the potential for cost reductions – devices &

biometrics

• Facial recognition
• Bio-Metric Data beyond wearables

TOP TRENDS… THEPTDC.COM

• Silent Generation: 70’s & 80’s in Age are a fast growing Personal

Training base. They have 1/3rd 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

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

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

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

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

PRESCRIPTION for ACTIVITY TAKS FORCE

• www.prescriptionforactivity.org

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

• Compelling + Cutting Edge Programming
• Technology + Touchpoints
• Corporate Wellness
• Seamless Integration
• Training + Development
• Sales + Marketing
• Equipment Procurement, Design + Development

FITNESS CENTER

MANAGEMENT EXPERTISE

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

OUR FITNESS APPROACH INCLUDES EXECUTING FITNESS PROGRAMMING FOR THOUSANDS OF MEMBERS ACROSS 10 STATES.

FITNESS +

AT THEIR FINGERTIPS

WELLNESS

TURN-KEY MARKETING

• Communication strategy
• Digital signage
• Marketing toolkit
• Health promotion content
• On-demand education
• Social Media best practices
• Video content

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

• 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

FITNESS PROGRAMS WELLNESS PROGRAMS HEALTH MANAGEMENT

F I T N E S S W E L L N E S S S O L U T I O N S

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.

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

• Fitness Workshops
• Health Education Seminars
• Activity Challenges
• Walking Programs
• Weight Loss Programs
• Recreational Activities
• Support with Events

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

• 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

We partner with healthcare organizations to offer fitness and wellness services that support their communities in living the best life possible.

MEDICAL INTEGRATION

MEDICAL FITNESS APPROACH

• Collaboration with medical & wellness

services

• Expand hospital brand
• Patient acquisition & retention
• Cost avoidance
• Integrated medical fitness
• Utilize wellness technology

MEDICAL INTEGRATION PROGRAMS

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

EXAMPLE #1

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.

WHY IS THIS IMPORTANT?

• These type of programs establish relationships with the medical community which is a viable yet
• ften 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

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

THE PITCH

• Start with the Science
• Explain Your Value
• Be Ready for Questions

○

Talking points

○

Research

○

Case studies

EXAMPLE #2

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.

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

THE POWER OF HABIT

BENEFITS TO YOUR HEALTH CLUB

• Additional revenue
• Program and marketing support
• Free class equipment
• Free training
• Optimized participation
• Expanded market reach

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)

DO YOU HAVE THE RIGHT CULTURE?

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)

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

S E C T I O N B R E A K

S E C T I O N B R E A K

T H A N K Y O U

CONTACT: BILL MCBRIDE Bill.McBride@ActiveWellness.com | 415.299.9482