Pancho et al,
as a cautionary note, the idea of doing rehab is not a bad one per se. As people have noted before, these clubs are busy primarily from 5-9 PM. In other locations, you will notice that elderly, etc. are the denizens of the morning. Adding rehab here makes sense, as they have the equipment necessary (or could be added at minimal expense), a fair amount of the facilities. Maybe they add a whirlpool.
Admittedly, it will take management skill to execute. They will need to hire trained staff. Bill insurance companies. Have medical supervision. Find new avenues of marketing. Gain referrals. Probably become a preferred provider from some cost-cutting HMO.
If I was a cost-minimizing HMO, I would pick BFIT -- they would keep down utilization for sure!! Of course, a self-respecting HMO would be interested in improving overall health and fitness...encouraging exercise, getting rehab done quickly and effectively, and getting the patient back to work. Seems like a tall order for BFIT, but a nice specialty for savvy health club managers.
Just my thoughts (and I will be thinking about shorting nearer to earnings release time. BTW, how do the street estimates compare with thread thinking??? I can't imagine that they will warn early, but... |
