Jackson-based University of Mississippi Medical Center plans to acquire a chain of local fitness centers for $9.26 million to establish UMMC Wellness Center, according to the Daily Journal.
The Courthouse Racquet and Fitness Centers cost an estimated $10.5 million, but owner John L. Black Jr. is gifting a portion of the six facilities. Mr. Black has been discussing the move over the last couple years with his former Ole Miss fraternity brother, James Keeton, MD, the UMMC vice chancellor for health affairs.
The centers will be medically integrated with UMMC, Dr. Keeton told the Daily Journal. They will be run by Addison, Ill.-based Power Wellness Management. The current fitness center employees will become Power employees. The new wellness model may require additional employees, according to the report. The management firm expects to staff about 100 workers at the six centers.
The new UMMC Wellness Center is projected to generate $5 million to $5.5 million in revenue each year. Power will receive 12 percent of monthly operating profits and a flat yearly payment of $144,000, according to the report. The College Board estimates Power will collect a total of $3.5 million in 10 years.
The facilities are expected to turn a profit in 2016, according to the report.
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