$5.35 Billion U.S. Medical Weight Loss Programs Now Have The Momentum

TAMPA, Fla. - Jan. 27, 2015 - PRLog -- Marketdata Enterprises, Inc., a leading market research publisher of studies about service industries since 1979, has examined diet market performance and consumer trends for 26 years, and sees stronger growth for medical weight loss providers than commercial companies.

“Many people don’t like Obamacare, but the Affordable Care Act is the greatest thing since sliced bread for medical weight loss programs. The Preventative Health Benefit mandates insurance coverage for obesity screening and counseling. Only medically supervised programs have the personnel qualified to do it—not the commercial chains,” according to Research Director, John LaRosa.

Medical weight loss programs will have the competitive advantage in 2015. Why? Because the ACA’s Preventative Care Benefit, which took effect Jan. 1, 2014, mandates that insurers pay for diet programs for people with a BMI of 30+, that are counseled by "qualified weight loss professionals" (MDs, RDs, PAs, Nurses). This benefit is worth $1,625/year and covers up to 14 counseling sessions, with the Medicare population included. This is an unprecedented opportunity for medically supervised programs to provide a higher level of service than commercial diet centers--essentially free of charge!

Medical weight loss programs have operated in the background of the diet market for decades. The commercial companies spend hundreds of millions each year on national TV ads and get a lot more exposure. However, lately they have been struggling. This is the best time in decades for Physicians, Nurse Practitioners, Registered Dietitians and Physicians Assistants to grab the reins and start their own weight loss practice or purchase a medical franchise. Consultants have proven that MDs can add $250,000 to $1+ million per year in revenues by doing so.

Why Medical Programs?

Adding weight loss to a physician’s practice is a natural. Consumers already have a long-term relationship with and trust their doctor. Doctors have a built-in client base and don’t have to spend as much on marketing to reach these patients. Doctors are better able to handle obesity-related conditions than commercial chains (high blood pressure, diabetes, pre-diabetes, high cholesterol, post-menopausal hormone imbalance, antidepressant weight gain, etc.).

Marketdata Findings & Forecasts:

* Medical weight loss programs in the U.S. generated an estimated $5.35 billion, via: bariatric surgery ($2.85 bill.), prescription obesity drugs ($560 million), Bariatricians’ programs ($488 million), Very Low Calorie Diets (VLCDs) ($449 million), and programs provided by hospitals, clinics and physicians ($1 billion).

*  More MDs will add weight loss to their practice, to make up for lost income and declining reimbursement. Internists, General Practitioners, Family Doctors and OB/gyns are especially well suited to add weight loss.

* We will soon see the emergence of more medical entrepreneurs  specializing in weight loss. Nurses, Dietitians, and Physicians Assistants will form new practices that deliver a higher level of weight loss counseling to dieters, at little to no cost out-of-pocket. With their own practice, income is unlimited, they are the boss, and liability protection is obtained via collaborative practice agreements and supervision by local MDs.

* Physicians and other medical pros need business training in how to set up and run a profitable weight loss program, either as a stand-alone center or by adding it to their existing practice. But, no medical associations offer this type of training, That's why Marketdata Enterprises is hosting a new conference: "Launching A Successful Medical Weight Loss Program”, in Orlando, March 13-14. Details at: DietShow2015.com. Speakers will cover: set-up, marketing, pricing, staffing, expenses/typical income, use of supplements, types of medical programs, competitors, how successful MDs do it, reimbursement, how to take advantage of the ACA benefit, and more.

*  The trend in weight loss is moving toward medical providers. More retail drug chains are opening in-store healthcare mini-clinics (1,900 and growing) at CVS, Walgreens, Rite Aid, others. And, they offer weight loss programs. They're staffed by Physicians Assistants or Nurses, who provide counseling right there, all covered by insurance.

* There is a major shift in the weight loss market—from a focus on diet FOOD/products to SERVICES.  Services now represent 50.7% of the total market's $59.8 billion value, vs. 49.3% for diet foods/products. Insurers will not pay for diet food, but they WILL pay for behavior modification sessions, exams, and lab tests.

“Flat is the new growth in the $60 billion U.S. weight loss market. The magic pill is still not here, and likely won’t be here in 2015. Medical weight loss programs are one of the few bright growth segments,” according to Research Director, John LaRosa.

ABOUT MARKETDATA

Marketdata is an independent market research firm and 26-year analyst of the U.S. weight loss market since 1989.  It publishes studies covering all diet market segments, performs consulting, custom research projects, teleconferences and operates a free weight loss news website: DietBusinessWatch.com. Mr. LaRosa is available for interviews.