Medispa industry shows continuing growth

But after several franchisee failures, some say a strong physician presence is needed to create a thriving business.

By Pamela Lewis Dolan, AMNews staff. March 12, 2007.

Even though the growth rate for medical spa openings is expected to stay strong, some medispa owners are learning merely opening the doors does not guarantee success.

According to Susie Ellis, president of Spa Finder Inc, a New York-based spa trend watcher and consumer resource which started tracking the medical spa industry four years ago, there are approximately 1,250 medical spa businesses in the U.S., up 50% from a year ago.

Ellis said her research indicates an estimated 33% growth rate in the number of medical spas for 2007. Only about five years ago, the medispa industry was essentially nonexistent.

"The baby boomers are fueling it," Ellis said. It started with a growth in the general beauty spa industry, but when medical treatments became available, boomers got really excited, she said.

By definition, medical spas -- medispas or medspas for short -- are cosmetic medical facilities that offer services such as laser hair removal, Botox, derma fillers and microdermabrasion, in a spa-type setting.

Experts say laws require that a physician medical director be on staff, although in many cases the physician is not required to be on site.

Physicians have been attracted to the medispa industry either through investment in a facility, or in a franchise offering to provide everything necessary to open one.

The medical spa industry is often pitched to physicians as a way to supplement their income in the face of declining insurance reimbursements.