Augie In Action! Augie In Action! - Ihrsa

WELLNESS NOTION
“In the mid-1980s, a hospital built a cardiac rehabilitation
center off of one of our gyms and would make use of it
several days a week,” Stauble recalls. “In another case, in
1983, there was a physical therapy facility adjacent to one
of our clubs—we shared equipment and learned that side
of the business.”
From those experiences, Healthtrax developed “the second
generation of a medically-affiliated fitness center
in a large medical building.” Each community wellness
center, typically situated in a relatively affluent suburb with
a population of about 100,000, consists of a two-story Class
A medical office building with a large central atrium that
allows plenty of sunlight to shine down from the second
IS THERE A DOCTOR IN THE CLUB?
How operators can forge a medical connection
It’s true that the medical community focuses on cures and
treatments, while the health club industry favors a more
preventative approach. But the reason that most doctors
are hesitant to refer their patients to health clubs is not—
contrary to popular belief—because they’re afraid they’ll
lose their livelihood, according to Bob Stauble, the director
of new business and sales for Healthtrax Fitness and
Wellness, in Glastonbury, Connecticut. Having worked
closely with hospitals and doctors for nearly three decades,
he’s learned that it’s not competition that they fear, but,
rather, the unknown.
“To their credit, doctors are just so busy—barely getting
through their 11-minute appointments, getting their
prescriptions right, giving all of their advice—that it’s hard
for them to make use of everything that’s available in
healthcare today,” he explains. “They just don’t know what
to expect out there in health clubs, which aren’t regulated
the way traditional healthcare providers are. They don’t want
to refer their patients to a fitness center and then
have them get hurt. If that happens once, they may stop
referring their patients to gyms—period.”
So how can club operators remedy this situation?
One way is to invite a group of doctors to participate in a
medical advisory board or focus group, Stauble suggests.
Give them a membership, introduce them to your club’s
services, and ask them to meet occasionally to provide
feedback on the business. “If they come and see your
systems and procedures firsthand, that’s a huge plus.
There’s no easy solution to physician referrals, but that
helps a lot.”
To operators interested in establishing a formal business
relationship with a hospital or medical practitioner, Stauble
advises, “You really want to convey the notion that you enhance
their core business—not that you’re a new additional business
component. Make sure they understand that, by aligning with
your club, they don’t have to change their business plan.”
86 Club Business International | MARCH 2008 | www.ihrsa.org
floor. A 35,000-square-foot
Healthtrax fitness center
typically occupies most of
the first floor, sharing space
with some clinical offices,
while the upstairs houses
the offices of doctors and
other medical professionals.
The building itself is
usually constructed by a
third-party developer, who
owns the real estate and
acts as landlord to all of Bob Stauble
the tenants. In most cases,
Healthtrax seeks out a hospital partner to attach its name
to the building, thus extending its brand presence beyond
its own medical campus and increasing its market share
in the community.
Together, the hospital and Healthtrax offer a construction
project that presents the most appeal to a developer. “The
benefit to the developer is that, between the hospital and
Healthtrax, the building is almost preleased,” Stauble notes.
“And, if a hospital can bring a 100,000-square-foot project
to a developer, instead of a 50,000-square-foot one, they can
probably get a better deal on development costs and rent by
going with the bigger project.”
“A medical affiliation helps
your credibility, and it appeals
to the kind of member
who’s not interested, or
comfortable, in a traditional
club setting.”
Once the community wellness center has been constructed,
Healthtrax sets out to strike up cooperation agreements, or
strategic partnerships, with its various neighbors.
“The agreement spells out the myriad ways in which
we might cooperate, in terms of cross-referrals and doing
marketing together,” Stauble explains. “We might even share
some of our amenities. For example, a therapy operation
might ask to use our pools during certain hours.”
Differentiation, referrals, profits
Today, Healthtrax Fitness and Wellness represents the
only fitness business model of its kind—which gives it a
measurable advantage over nearby health clubs.
“Being a differentiated fitness center leads to more
profits,” Stauble points out. “When you’re not competing
head-to-head with traditional gyms and health clubs, then