Physicians Going the Medical Spa Route

MDs embrace cash-only business model and med-spa industry boom

The only thing in greater demand than Botox is the increasing number of physicians purchasing medical spa franchises, allowing healthcare professionals to cash-in on the $1 billion dollar med-spa industry boom.

Medical spa revenues rose to $1 billion in 2006, up dramatically from $469 million in 2005—making it the fastest growing segment of the nation’s spa industry. Entrepreneurial-minded physicians might want to take note. Many medical spa franchises see more than half of all of their owners coming from the medical community. Doctors, looking for a new career or an additional source of revenue, are capitalizing on an emerging national consumer trend.

Doctors Taking Care

Herb Parris, MD, a former family practitioner in Denver, left his practice to purchase a medical spa franchise. Prior to the career change, Dr. Parris specialized in sports medicine for over a decade, but as his industry saw malpractice insurance premiums rise and reimbursement rates drop, he knew it was time to make a change. Lured by the idea of a cash-only business model and receiving payment in full immediately post-service, Dr. Parris purchased an Ageless Remedies franchise and is thrilled to be a part of a highly profitable business allowing people to embrace the latest technologies for the betterment of the body’s largest organ—the skin.

Other physicians, however, decide to purchase a medical spa franchise in addition to their current practice. Dr. Reed Seligman, a cardiologist and franchise owner in the Atlanta market, recently purchased his first medical spa franchise as an additional source of revenue as well as a business that he and his wife Suzanne could run and enjoy together.

Being involved with one of the country’s leading medical spa franchises, I get to talk daily with some of the nation’s most top physicians. Their concerns and passions are the same. Physicians love interacting with patients on a daily basis but gripe about longer hours and an evaporating bottom line.

After years of dealing with insurance headaches, higher operating costs, and the constant threat of malpractice, a medical related business that eliminates the “insurance issue” is a dream come true for many. And the fact that these doctors still get to work with patients and deliver results on a daily basis provides the best of both worlds.

Legitimate ServicesDispelling the stereotype that treatments such as injectables, chemical peels, and fillers are reserved for Hollywood types, medical spa franchises offer non-invasive medical procedures that provide results. If a consumer visits one of the leading medical spa franchises, these procedures are delivered in a professional, inviting and clinical environment that patients find more relaxing and less intimidating than typical doctors’ offices.

Medical spa franchises have found a niche by focusing on the skin and providing personalized skin care regimens for all age groups and skin types. Over the past five years, the medical spa industry has increased 133%—from approximately 450 facilities in 2002 to more than 2,000 facilities in 2007, according to the International Medical Spa Association.

When considering medical spa franchise opportunities, look for a franchisor that has the corporate infrastructure and highly trained staff necessary to educate you on every facet of the business, including training protocols, marketing and day-to-day operations. Other aspects to consider involve medical spa franchises that offer multiple revenue streams such as retail products, to aid in the further delivery of cosmetic solutions and maximize profit potential for the franchise owner.

And when choosing a medical spa franchise, it’s safest to choose a model with an established name and operating history, and one developed in strict conformity with state and federal legal and regulatory compliance requirements.

David Smith is the Chief Operating Officer of Ageless Remedies Medical Skincare and Apothecary Franchise. He welcomes comments at 404-816-7550 or info@agelessremedies.com.