The physicians conundrum: Everywhere, physicians are contemplating or engaged in expanding into “medical spa” market. Seduced by media buzz around this hot new phenomenon, many doctors see medical spa as a means boosting their income and eliminating growing grind and countless headaches of their daily practice. They read about growth statistics, see dazzling new equipment at trade shows, watch competitors popping up, and fear that they may be falling behind times. With pen in hand they’re ready to sign lease agreements, loan documents, and lots of checks in order to catch up with a crowd of savvy entrepreneurs who know where real action is. And truth is, they’re right. Medical spas are natural evolution of cosmetic medicine, and those who don’t join revolution will watch from sidelines as their fate is decided.Medical spas are forerunner of a revolution. From Galen until now, primary method of care has been through hands and individual knowledge of a physician. But that’s changing. The default method of care is becoming technology based. In every market and time, technologies are developed that replace an individuals knowledge and skill.
Lasers, IPLs, radio frequency, infrared, personal DNA testing, Pointe Lift™, Liposolve™, Clear², PDT, telomere clipping, anti-aging drugs and a smorgasbord of other technologies in development promise to change medicine in same way that computers, jet engines, and GPS have changed aviation. Technology now enables a technician (under medical supervision) to perform effective medical treatments and places physician in an oversight roll instead of being primary practitioner. In near future, physicians will have more in common with an astronauts than Wright Brothers.
But changing technology poses very deep problems for physicians. Technology allows easy replication and scalability, forces an unimaginably steep new learning curve on overworked doctors, and eliminates many of barriers and protections that physicians have relied on in past. And it’s only going to get worse.
Consider this. The combination of markets that Surface competes in is huge (40-50 billion per year and growing), highly fragmented (individual practitioner model), completely new (technology based), and free of any meaningful national players (yet). Already there are very deep pockets investigating ways to exploit this emerging marketplace. The Wal-Marts and Home Depots of this new medical marketplace are being built.
But there’s opportunity as well. Technology opens new doors for physicians who can manage this new paradigm. That’s why a ready supply of smart and motivated physicians tired of daily grind of insurance patients are moving into marketplace and successfully competing. For first time, physicians outside current specialties of plastic surgery (cutting and stitching) and dermatology (diseases of skin) have potential to earn income of these “big money” specialties. This new market will inevitably give rise to a new specialty whose focus will be “non-surgical cosmetic medical technologies”. You can see fragmentation today. Many dermatologists now label themselves as “cosmetic” to market themselves as a subspecialty.
Hurry up and wait. You can’t get enough good information fast enough. But this is a new business and demands a huge investment of time to make right decisions. Sales reps will stream into your clinic armed with charts and graphs that go up and to right, advertisers will drop phrases like “top of mind awareness”, and you'll have a creeping suspicion that market is getting away from you. Go slow. There are a host of land mines in area and there are some that will be advising you to jump directly on them.
So, how do you build a medical spa inside your existing practice? Surface has three locations, four physicians, master aestheticians, technicians, patient coordinators, managers and office staff. Every treatment at Surface is governed by a set of proprietary protocols. As a business, we have advised dozens of individual physicians, managers, and investors about opening and operating medical spas. Be advised this is not easy, but here are a few suggestions.
Physician heal thyself: This is your business. Consultants make their money by telling others how to run businesses that they can’t run themselves. Believe me, if a medical spa consultant was worth hiring, they would be running their own medical spa. Consultants will tell you that you have to have massage, retail should be 30% or your gross sales, and “you might want to consider hydrotherapy”. Wrong. The day that retail is 30% of our gross sales I’ll eat my left foot. Our retail is around 3%. If it ever gets to 5% we’ll cut back. If this is going to be your business, make your own decisions.