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1 THE ECONOMICS OF AN ANTI-AGEING PRACTICE PLASTIC SURGERY ASSOCIATES UK BUPA CROMWELL HOSPITAL LONDON CONSTANCE CAMPION Nurse Practitioner Analyst Private Medical Equity THE LONDON WELLNESS CENTRE 90 ½ LEXHAM GARDENS LONDON Private Practice- a personal philosophy We are the trusted agent of our patients. We are not vendors, we are not businessmen in the sense that business markets its services to customers We must be the patient s advocate that is the heart of medicine. The patient cannot operate on the assumption of caveat emptor. Presentation Objectives Medical Economics v Health Economics To determine the correct elements of a successful anti-ageing practice by utilizing the relevant medical economic facts required in successful private equity Health economics is a branch of economics concerned with issues related to health, service provision, scarcity and supply. MSOffice1 MSOffice2 Health Economics Medical Economics In broad terms, health economics studies the functioning of the health care system and the private and social causes of healthaffecting behaviours Medical economics is concerned with successful medical enterprise which utilizes the analysis of the production, distribution and consumption of medical goods and services

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3 Integrating Medical Enterprise into Successful Anti-Ageing Medical Practices DEFINING THE ART OF GREAT SERVICE The Anti-Ageing Business Medical Economics Analysis and Practice Success "How to Manage Yourself, Your Staff, and Your Co-Workers Without Going Mad! Illustrates the profile of the practice Infuses a philosophy which is the nucleus of the branding Indentifies Specific Unique Service Propositions and Secrets of Differentiation Maintains Initiative Implement s Specific Strategies for Business Success Supports Decision Making Benchmarks Competitive Activity The Practice Stands Out in New Business Pitches The Business of Facts and Figures Fact The World Health Organization estimates that by the year 2025, we will be a planet of 8 billion residents By 2025 the number of people age 65 and older will reach 800 million -one of every ten persons

4 Average Life-Expectancy Market Potential We will also enjoy, worldwide, an average life expectancy of 73 years A Bear Market Globally Segmentation and Elements of Anti-Ageing Practices Market Dynamics And Segmentation Anti-Ageing Medicine Wellness Medicine Longevity Medicine Preventative Medicine Functional Medicine Plastic Surgery Medical Aesthetics Global Market Global Worth of Anti-Ageing Market The global anti-aging market for the boomer generation was worth $162.2 billion in This should reach $274.5 billion in 2013, for compound annual growth rate (CAGR) of 11.1%. The disease segment generated $66.0 billion in This is expected to grow at a CAGR of 12.5% to reach $119.2 billion in The appearance segment generated $64.4 billion in This segment should increase to $105.4 billion in 2013, for a CAGR of 10.4%. Analyst: Sandeep Sugla

5 Figures USA Analyzed Anti-ageing medicine is now an $88 billion industry in the USA Only a small portion of revenue comes from medical aesthetic procedures and products Key Indicators Cosmetic Surgery and Non-Surgery USA The vast majority of receipts emanate from doctors, pharmacies, practitioners and suppliers selling wellness and anti-ageing medicines US Cosmetic Surgery Procedures Market to Reach $15.1 Billion by 2012, according to a New Report by Global Industry Analysts, Inc. Anti-ageing Skincare Market USA The obsession of Americans to look young drives demand for cosmetic surgery products. The US cosmetic surgery products market is projected to reach $3.07 billion by 2012 Down 4% in 2009 to $1.2 billion but it is rebounding to recovery rate growth

6 The Economic Impact Aesthetic Surgery Figures UK The most significant upturn in the sale of anti-ageing goods in the USA took place in less than a decade Estimated worth 2.3 billion Up 17% between Propelling Growth Anti-Ageing Market UK Non-surgical accounts for 75% of the value of aesthetic procedures in 2010 Between 2008 and 2010, the UK market for cosmetic surgery is estimated to have grown by 17% to reach an estimated worth of 2.3 billion. Non-surgical procedures are estimated to account for more than 90% of all procedures and for almost 75% of revenues in June Figures 2010 Market Potential UK Key Indicators % Women have had surgery 1% of men have had surgery 48% (19million) adults would like some form of surgery Appeals more to younger adults 6/ year olds would like surgery compared to 3/10 over 55 s Key Indicators that potential groups are emerging and that potential patient numbers are growing A fear of surgery going wrong High costs is diminishing PPF A dangerous side of the industry highlighted in the spotlight Aesthetic surgery now seen as a last resort

7 Anti-Ageing Medicine Potential Cosmetic surgery is a last resort for fixing aspects of people s appearance that they don t like. The Female Beauty and Personal Care Consumer Market - UK A worth approaching 14 billion (including products and services such as hairdressing Source: Mintel June 2010 The trend is anti-ageing UK Market Assessment Vitamins, Minerals & Supplements In the UK, the anti-ageing trend has driven many regional markets for toiletries and cosmetics, fuelling growth by 3.5% in a market worth over 5 billion pounds The Market for (VMS) in Great Britain fell by a substantial 8.5% in the year ending April 2009, to 374.8m Source Kline Between 2001 and 2007, virtually all of the market's growth was in supplements Global Trend Upwards Worth of the UK Skin Market A greater overall interest in healthy lifestyles Greater affluence among the older population The survey identified that the UK face skincare market, including sun care, was worth 2bn in 2009, an increase of 5% on the previous year. Despite the harsh economic conditions, consumers are still spending on skin care. (Key Note Survey 2009)

8 FACE VALUE British Women spend 544 million annually on face creams The sector accounted for 26.8% of the total value of toiletries sales in the UK in 2009, with growth driven by premium priced anti-ageing products Intelligent skin care products backed by clinical trials has also seen a significant uplift, and are fastapproaching a value of 150m Placing Anti-ageing Wellness is now an element of the prestige market Linked with anti-ageing, it is part of the luxury brands group Current UK Anti- Ageing Practice Model Fever on the High Street There are 5,000 premises in the UK carrying out 200,000 treatments a year, in medical aesthetics The sector grew by 25% in 2009 Indicators for Anti-Ageing Manufacturers of products are keen to promote a beauty from within message, linking healthy diets and lifestyles to beauty. Links to Trading

9 The Market in the UK The Task in Hand Baby Boomers Golden Boomers The Living Well The Grey Market Gen X-er's Anti-Ageing Medicine can alter this course by preventing, delaying, or reversing the diseases associated with ageing Visualize The Practice Smart practitioners find the right way to express their business expertise They implement their ideas into effective practices 5 Strategies for Private Practice Success Identify your medical profile and unique service dynamic Conduct a fearless inventory and business plan based on accurate R&D which sets realistic goals 5 Strategies for Private Practice Success Implement a practice management system with good software which can assist regular audit Select the right staff ~yourself

10 The Pearl. Dr Fairless's Manifesto Learn, learn, learn, serve, serve serve! Make a Fearless Honest Inventory about your Practice and your professional competency Recognise your strength and admit your weakness Outline what you specifically want Do a Business Plan and set out realistic goals one by one The Power of Effective Practitioners Clinical Competency Business Acumen CPD Audit Define Practice Objectives Implement Clinical & Business Competencies Practical Advice Survey the market Segment where you want to be most active Differentiate your practice and position yourself firmly across the market. Know what patients want ; a practitioner who they can trust as well as one who is passionate about what they do. Select the right treatment and product choices and offer an attractive array of treatments Intellectual Property How to create a firm and long-lasting foundation for your business How to let your practice serve you, rather than you serve your practice The 6 steps you ll need to take - to make a real difference Who is the most important person for you to know in your business The 5 factors that create an ideal strategy for you How you can get maximum exposure with minimum expenditure How to organise a constant supply of top quality enquiries for your services - and what you must do with them Good Luck!

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