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April, 2003, Vol. 03, Issue 04

Entrepreneur Magazine Lauds "Medi-Spas"

By Editorial Staff

What's hot for 2003? Entrepreneur magazine asks that very question in its December 2002 issue, and provides an intriguing answer: medical spas. The issue, dedicated to "pinpoint[ing] the industries, opportunities, trends and markets we believe have the best potential this year and beyond," lists the medical or "medi" spa as one of 12 hot businesses.

(Other "hot" businesses on Entrepreneur's list include online learning; eBay aftermarket; home entertainment installation; pet products; security; health-care tech; instant messaging; online gaming; outsourcing; and bankruptcy doctor.)

The December issue features a short article lauding the increasing popularity and profitability of medical spas. The article includes commentary from Melinda Minton, spa consultant and founder of The Spa Association, who notes that the medical spa industry is "the fastest-growing segment of the spa industry," with an estimated 23 percent growth annually. Also mentioned is Marcia Fosnaugh-Avis, who not only transformed her late father's Southfield, Mich., dermatology clinic into a medi-spa, but also started her own line of skincare products. The spa, which offers "everything from face lifts and liposuction to Botox injections," pulls in an estimated 30 percent of the company's $3 million annual revenue.

Entrepreneur does offer a potential downside to the medi-spa industry: "payroll and the costs of creating luxury surroundings can mean high overhead" - but adds, "Medical spas, or 'medi-spas,' have become a beauty of a business category. ... Consumers are looking for a quick fix and some pampering ... on the other end are doctors breaking into higher-end services where haggling with insurance companies isn't an issue."

 

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