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Med-Spas
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Med-Spas
Get off work and drop by the spa for a quick laser peel. Welcome to medicine in the new millennium. More and more consumers want medical services (we use the term loosely) to feel like a trip to the salon, and businesses that provide that feeling are seeing healthy returns.

Medical spas, or "med-spas," have become a beauty of a business category. Services include dental cosmetics, chiropractic services, vein removal, laser skin resurfacing and even laser eye surgery. 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. "Physicians from all realms are getting involved," says Melinda Minton, a spa consultant in Fort Collins, Colorado, and founder of The Spa Association. "They just decide that they're now a spa."

Marcia Fosnaugh-Avis, 46, has transformed her late father's Southfield, Michigan, dermatology clinic, Fosnaugh Center for Plastic and Reconstructive Surgery, into a med-spa offering everything from face-lifts and liposuction to Botox injections. She's also started a skin-care line called Clinitone. Today, the center has annual sales of about $3 million, with the med-spa constituting 30 percent of the company's business. You have to be a good strategist to pull all these areas together successfully under one roof, she says. "Have some background in the area," she suggests.
The downside: Payroll and the costs of creating luxury surroundings can mean high overhead. Most spas make between 8 to 13 percent profit--low for a business. If this is too ugly a prospect, consider cyberspace, where websites such as HealthcheckUSA.com are springing up to offer direct-to-consumer blood testing and other services.

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