Healthplex Associates, Your Partner in Wellness & Fitness
Healthplex Associates is the nation’s leading consulting firm for Hospitals, Health Systems, Universities and other medical and healthcare professionals who seek to create unique wellness, fitness and ambulatory care centers to promote a healthy lifestyle in their community. Healthplex Associates is led by seasoned healthcare executives who understand the continuum of care and offer a full range of services; feasibility analysis, clinical integration planning, design and construction oversight, financing assistance, equity partnership, management outsourcing, as well as operational analysis and audit. Make your medical fitness and wellness center more than just a health club.
Healthplex Case Study: Fairmont General Hospital
Background
As Fairmont General Hospital (FGH) considered building an ambulatory campus in early 2005, it was the only hospital in the primary service area. However, it was suffering from the problem of “out migration” or people choosing to go to other communities for healthcare services, rather than remaining in Fairmont. In addition, a new full service hospital was being planned in FGH’s backyard as a result of an expansion project launched by a nearby aggressive and competitive hospital system.
After thoroughly assessing the Hospital’s financial position, patient volumes, market share, and trends, a strategic plan was formulated. A primary focus of the strategic plan was to expand outpatient services into the secondary service area, launch a successful physician recruitment initiative and increase revenue and profitability. This plan led to the decision to build a Healthplex which combined a medical office building, outpatient clinical services and medically related retail services with a clinically integrated medical fitness center. A Healthplex, if operated properly, has proven to not only create a new source of revenue for the Hospital, but also to produce substantial increases in clinical volumes, revenues, and overall market share. Hospitals who have implemented this strategy have also been successful in the recruitment of physicians and other clinical professionals such as physical therapists, which has led to an increase in inpatient and other outpatient volumes.
FGH procured five acres of land from a local developer which is located in a retail shopping area immediately off the major interstate highway and is adjacent to a new Applebee’s and a Fairfield hotel.
In January 2008, FGH opened this 56,000 GSF ambulatory care facility, which included:
- Physical Therapy (4,280 NSF)
- Cardiac/Pulmonary Rehabilitation (1,720 NSF)
- Imaging including Mammography (2,920 NSF)
- Occupational Medicine (2,360 NSF)
- Physician Offices (3,100 NSF)
- Phlebotomy (85 NSF)
- Conference Room (450 NSF)
- Pharmacy (1,790 NSF/ run by a private operator)
- Café (360 NSF/ run by a private operator)
- Medical Fitness Center (22,000 NSF)
Area Demographics
The Healthplex service area is defined as geographical area that is a 30 minute drive time from the site:
- Total service area population is 148,000; however, it is declining at a modest rate.
- Population density is concentrated in the cities of Fairmont, Clarksburg and Morgantown which together represent 73% of employees in the service area.
- The median age of the service area is 38 years of age.
- 14% of the population is over 65 years of age.
- 6.9% of the population has a college degree.
- The median household income for the overall Fairmont area is $52,765 which is 84% of the U.S. average.
- Five commercial fitness centers operated in the service area in 2008.
Membership Success
- The FGH Healthplex fitness center opened with 1046 members which exceeded projections by 2%.
- Membership continued to grow steadily to 1633 in the first nine months of operation which exceed projections by 3%.
- Financially, the FGH Healthplex is on track to generate a positive cash flow the 23rd month of operation.
Membership Demographics:
Age Classification
16 – 18 4%
18 – 35 25%
35 – 55 39%
55 – 65 21%
65 – 75 9%
75+ 2%
Membership Type
Primary Members (first family member) 70%
Associate Members (second family member) 23%
Teen (third family member) 7%
Employees as a percent of total members 13%
Clinical Services Success:
Physical Therapy
Patient visits for the third quarter of operation in the Healthplex (July – September 2008) were 4378 representing an increase of 104% over visits for the same period in the previous year (2146).
-
Aquatic Physical Therapy was introduced one month after opening (February 2009) and immediately attracted referrals which grew from 3% of total visits in February 2009 to 5% of total visits in September 2009. Additional hours of dedicated pool time are being added to accommodate more aqua therapy patients.
-
Approximately 15% of Physical Therapy patients utilize the Medical Fitness Center equipment during their course of reimbursed treatment.
Cardiac Rehabilitation
Since FGH does not have interventional cardiac services, the source of Cardiac Rehabilitation visits come from patients who have been discharged from another hospital after a stent, CABG or other surgical procedure.
-
Cardiac Rehabilitation Phase II volume grew 57% over the first four months of operation at the Healthplex site (January – April 2008).
-
Approximately 50% of the patients attending the Phase III program at the former hospital site joined the Medical Fitness Center as a member upon opening of the new facility. These patients were screened for acuity to assure they were able to exercise independently.
Summary
The Healthplex allowed Fairmont General Hospital to meet its original strategic objectives:
-
The Physical Therapy and Cardiac Rehabilitation Departments have increased their visit volume and market share since relocating to the Healthplex.
-
The medical fitness center is, in and of itself, financially viable and has provided a new source of revenue and prestige to the Hospital.
-
The presence of FGH physicians at the Healthplex has provided the community with convenient access to primary care and specialist services and an attractive location for physicians to practice.
-
The unique mix of clinical and fitness services at the Healthplex has provided an expanded scope of clinical services and the continuum of care to patients.
-
The new destination campus has allowed FGH to establish a clear presence in its secondary service area.
