Episode #516:Jill Kinney on Medical Fitness Centers and Active Wellness Innovations

Host Pete Moore is joined by an industry pioneer and long-time friend Jill Kinney, currently the Founder/Chairman of Active Wellness. They deep dive into the ever-evolving landscape of fitness for the senior population, focusing on Jill's innovative work with Active Wellness. She shares her insights on redefining fitness centers, especially within healthcare systems and senior living communities, through the creation of Activate—a high-touch, personalized wellness program which are transforming traditional spaces into profitable, consumer-facing wellness hubs. 

Drawing from a rich background in developing, owning, and operating fitness clubs, Jill has successfully melded her expertise to create distinct, consumer-focused models within the industry. 

Kinney states, "I don't think the health care systems or hospitals per se, really understand marketing. Most of the folks that we've dealt with felt like their medical fitness center was somehow or another going to be so unique that it would have no competition . . . and there's there's nothing further from the truth . . . what we've done is taken our branding, marketing, and sales skills and turned these businesses around, so they're profitable. They're generating 18 to 25% EBITDA returns."

Key themes discussed

• Challenges of managing hospital real estate assets.
• Personalized wellness program with brain training, recovery, and E-Gym.
• Excitement for real estate investment opportunities and models.
• Opening up facility to public feedback.

A few key takeaways: 

1. Active Wellness is a fitness and wellness management company that provides a unique twist through two distinct models:

-Active Wellness Centers: These are similar to medical fitness centers but with a profitability and business focus, making them more consumer-facing and competitive.

-Activate Program: A turnkey, approximately $2,000,000 solution with a small footprint (5,000-10,000 square feet), integrating personalized wellness and fitness programs featuring high-tech and data-driven approaches.

2. Hospitals and healthcare systems often underestimate the importance of sales and marketing, especially when it comes to running fitness centers. Active Wellness steps in to turn these facilities into profitable, consumer-friendly wellness centers that attract members and operate with commercial efficiency.

3. The Activate program includes a variety of personalized services such as personal health coaching, registered dietitians, and specialized equipment like eGym for tailored fitness plans. Emphasis is placed on a holistic approach encompassing fitness, recovery, and even brain training.

4. Activate centers generate significant financial returns (28%-35% ROI on invested capital starting from year 2) and transform previously cost-center amenities into profitable entities.

5. Although initially targeted at seniors and independent living communities, the program's appeal is broadening to a younger demographic. Active Wellness plans to scale up, aiming to have around 20 Activate locations in the near future, with a longer-term goal of expanding to 50-100 locations.

Click here to download transcript. 

Resources: 

• Jill Kinney: https://www.linkedin.com/in/jillkinney/
• Active Wellness: https://activewellness.com/ 
• Buck Institute: https://www.buckinstitute.org/ 
• E-Gym: https://egym.com/us 
• Prospect Wizard: http://www.theprospectwizard.com
• Promotion Vault: http://www.promotionvault.com
• HigherDose: http://www.higherdose.com 

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