Wellness Service Lines Boost Hospital Revenue

Joe Cantlupe, for HealthLeaders Media , August 18, 2010
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The hospital offers spa-type services through its wellness center, known as Vita, and it offers membership packages, including yoga, health screenings, and other services for various fees, ranging from a $160 monthly to more extensive services at $1,560 to $3,350 a year, with a pitch of  “having access to every integrative therapy and health program imaginable—unlocking your health potential.”
Hospital officials are discussing plans to build additional private patient rooms and to expand the development of 80 of its 160 acres to create a “premier wellness campus,” Grinsven says.

Joe Cantlupe is senior editor for physicians and service lines for HealthLeaders Media. He may be contacted at jcantlupe@healthleadersmedia.com.

Creating a New Business

Beaumont Hospitals, a three-hospital system in Oakland, Macomb, and Wayne counties in Michigan, has a wellness program that produces income-generating contracts with local communities, businesses, and colleges. 

Over the past several years, the hospital expanded an internal program to include outside clients under a new hospital corporate structure that oversees the plan. The hospital system has 1,744 beds and more than 18,000 employees in areas outside of Detroit.

The hospital has budgeted more than $220,000 annually for its wellness programs, and “is breaking even,” says Tom Spring, program manager for myOptimal Health Beaumont Business Health Strategies, the unit that runs the wellness programs for the hospital.

“We’re a revenue-generating program,” Spring says. “We hit the ground running and are building the business structure that the C-suite really likes. We’re making contacts with major groups [in the area] and it’s giving Beaumont a different brand and wellness outreach gives business back to the hospital.”
One of the Beaumont clients, the city of Rochester Hills, spends $20,000 annually with the hospital under a multiyear plan that includes wellness programs provided by the hospital’s staff, he says. The city has one of the more extensive wellness contracts with the hospital, Spring says.

The hospital’s wellness program began to reach outside its own building in 2007 when another nearby city, Madison Heights, asked the hospital to help run a program for it, Spring says. From there, a new hospital initiative was born, he says.

“We are touching a lot of people,” Spring says. “Instead of having them come to Beaumont, we come to them. We have a number of different programs we offer—from biometrics screening to health coaching to risk assessment. And then there are smoking-cessation campaigns, exercise programs, weight management, and stress reduction activities.” Beaumont’s wellness staff carries out the programs at the client sites, Spring says.

Wellness programs are about “having a consistent message, being able to reach people who otherwise would not be interested, a group that ultimately may have the most risk,” Spring says.

Joe Cantlupe is a senior editor with HealthLeaders Media Online.
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