WEBVTT - Integration Over Innovation in Health and Wellness

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<v Speaker 1>This is Bloomberg Business Week with Carol Messer and Jason

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<v Speaker 1>Kelly on Bloomberg Radio giving them stones, looking for fun

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<v Speaker 1>and it's all about wellness, and increasingly we have tons

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<v Speaker 1>of conversations here on Bloomberg Radio just about that, a

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<v Speaker 1>lot of companies involved in that space, and that includes

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<v Speaker 1>our next guest. They actually rang. He did the opening

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<v Speaker 1>belt the NAZAC today, Donato Tea Muto. Did I say

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<v Speaker 1>it well? Almost? Chief executive officer of Tennessee based Activity Health.

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<v Speaker 1>It's a provider of nutrition and fitness solutions. You know

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<v Speaker 1>their brands, Nutral Systems, South Beach, Diet, Prime Fitness. They're

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<v Speaker 1>launching a new nutrition division that also takes into account

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<v Speaker 1>some of their existing brands. He joins us in our

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<v Speaker 1>Bloomberg Interreactor Broker Student, New York. Say your name for me,

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<v Speaker 1>because it's beautiful. Do not much better and much better?

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<v Speaker 1>Tell me tell us a little bit about the wellness

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<v Speaker 1>division that you got. Have created this nutrition division specifically,

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<v Speaker 1>and I think it's not so much addis about wellness

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<v Speaker 1>is that we are addressing now the social determinants of health.

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<v Speaker 1>Where you live, where you age, your financial makeup has

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<v Speaker 1>more of a determinant of your health outcome than your

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<v Speaker 1>genetic code. And what Tivity has done for years, we've

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<v Speaker 1>had the signature iconic brand Silver Sneakers, which provides physical

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<v Speaker 1>fitness to nearly sixteen million seniors. If you're aging in

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<v Speaker 1>America today, especially in rural America, and you are inactive,

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<v Speaker 1>chances are you're also very much alone and you have

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<v Speaker 1>food in security. And so what Tivity Health is aspiring

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<v Speaker 1>to do with our new brand wisely, well, it's almost

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<v Speaker 1>like the trifecta. How do we address inactivity among these seniors?

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<v Speaker 1>How do we address food in security? And if you're

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<v Speaker 1>addressing food in security and you're addressing in activity, you're

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<v Speaker 1>going to address the new chronic condition of the twenty

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<v Speaker 1>one century, all loneliness. And that's really what we are

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<v Speaker 1>aspiring to do. And so how do you do that?

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<v Speaker 1>Where does the rubber meet the road here in terms

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<v Speaker 1>of the types of activities are the types of services

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<v Speaker 1>or products that you're going to provide? Well, Silver Sneakers

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<v Speaker 1>has been around for twenty seven years. We have eighteen

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<v Speaker 1>thousand fitness centers that are part of our network. And

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<v Speaker 1>let me say those to you. When the seniors are

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<v Speaker 1>going to the fitness centers rest as sure they're not

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<v Speaker 1>bench pressing a hundred and fifty pounds right, They're there

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<v Speaker 1>because they're making social connections. And there's a quickneys central

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<v Speaker 1>opportunity with our fitness center partners to identify are they

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<v Speaker 1>feeling alone. If they are feeling alone, I can bet

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<v Speaker 1>my bottom dollar that they have issues with food. And

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<v Speaker 1>so we have this trusted brand called Silver Sneakers. Why

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<v Speaker 1>not add food and nutrition and social connections to the program.

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<v Speaker 1>And that's really what we're doing. I feel like when

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<v Speaker 1>it comes to this, like what you do as a

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<v Speaker 1>younger individual carries over into as you age, and I

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<v Speaker 1>feel like there's a lot of things we could get

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<v Speaker 1>into because I feel like, you know, there's some people,

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<v Speaker 1>whether young or old, are just trying to get through

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<v Speaker 1>the day, get their job done, to care of their family,

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<v Speaker 1>get to bed and get some sleep. Um and those

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<v Speaker 1>who often I think at the higher incomes, you know, scale,

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<v Speaker 1>can have equipment in their home to work out and

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<v Speaker 1>stay healthier, can buy healthier food. I mean, there's a

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<v Speaker 1>lot of things going on. I feel like it's a

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<v Speaker 1>it's a bigger, broader societal question. I mean, you're talking

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<v Speaker 1>about loneliness. Um, you know, we used to have a

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<v Speaker 1>family structure where they're often very you know, several generations

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<v Speaker 1>in a home. My parents grew up that way. I mean,

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<v Speaker 1>it's it's just a lot of things going on. How

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<v Speaker 1>do you fix what is a very big, I think problem. Well,

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<v Speaker 1>my favorite philosopher, Yogi barrow One said, you don't want

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<v Speaker 1>to make the wrong mistake. Yeah, And you know, I

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<v Speaker 1>think there's a quinines sentual opportunity to recognize and I am.

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<v Speaker 1>I'm an author of a book that I released three

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<v Speaker 1>years ago that talks about this need of integration. We

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<v Speaker 1>have been folks, seen our efforts on innovation, and yet

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<v Speaker 1>the answer is really about integrating what's out there. Case

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<v Speaker 1>in point, you have the Silver Sneakers program. Sixteen million

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<v Speaker 1>seniors get it for free, yet we only have three

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<v Speaker 1>and a half million that have signed up for that Sneakers.

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<v Speaker 1>It's a physical fitness program that Medicare Advantage of plans

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<v Speaker 1>are providing to the senior population. It's getting them out

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<v Speaker 1>of their home into a fitness center. And as I

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<v Speaker 1>stated before, it's not just about working out. Our seniors

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<v Speaker 1>are not just on the treadmill. They're making new friends

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<v Speaker 1>let me push the point. You know, one step further

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<v Speaker 1>is that there's meals on wheels in the local community,

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<v Speaker 1>there's bingle night, there's all these activities that unfortunately if

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<v Speaker 1>you don't ask the senior. And I did a up

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<v Speaker 1>ed on December twenty six that appeared in USA Today

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<v Speaker 1>and I basically titled it, ask your seniors Are they lonely?

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<v Speaker 1>There's something about not wanting to admit that you're lonely,

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<v Speaker 1>and so we need to ask the question and give

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<v Speaker 1>you a great specialization. Right, everybody, most people except for Jason,

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<v Speaker 1>likes to be a little kid. But you know what

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<v Speaker 1>it's for the seniors. It's an accumulation factory. No, I

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<v Speaker 1>get it. You you lose your spouse, your you know,

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<v Speaker 1>son or daughter has moved away, your kids take the

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<v Speaker 1>car keys away, your best friend has passed away. It's

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<v Speaker 1>an accumulation factor. And so we need to really step

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<v Speaker 1>forward and ask the question are you alone? And then

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<v Speaker 1>be able to integrate them into services that are available

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<v Speaker 1>in the community. And so, and we want to talk

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<v Speaker 1>more about this. We're gonna hold you over talk a

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<v Speaker 1>little bit more. But you know, briefly, how does nutrition

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<v Speaker 1>sort of fit into that well, again, if you go

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<v Speaker 1>back to the social determinants of health, where you live,

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<v Speaker 1>where you sleep, your financial makeup in many respects will

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<v Speaker 1>determine whether or not that last week or that last

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<v Speaker 1>two weeks of the month you can afford to buy

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<v Speaker 1>food and you can afford to buy medication. And what's

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<v Speaker 1>happened to very significant legislative laws have been passed. C

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<v Speaker 1>MS passed the law where they're going to reimburse up

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<v Speaker 1>to four weeks of food delivery for a senior that

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<v Speaker 1>has been released from the hospital but doesn't have the

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<v Speaker 1>means or the capability to cook for themselves. Brilliant. Donato

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<v Speaker 1>Tromudo still with us, CEO of Tivity Health based down

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<v Speaker 1>in Nashville, Tennessee. He's here with us in New York City.

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<v Speaker 1>So Donato, I want to sort of go back a

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<v Speaker 1>step if we can, to the underlying business, because you

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<v Speaker 1>ultimately own a number of brands that people are familiar with,

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<v Speaker 1>South Beach and nutri System. Tell us about those businesses

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<v Speaker 1>and how it all sort of fits together absolutely, and

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<v Speaker 1>so you know, I did speak a few minutes about

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<v Speaker 1>activity health and sover Sneakers, and so what we have

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<v Speaker 1>is another vertical which is the weight management vertical, and

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<v Speaker 1>we'll still continue to drive forward the ability to grow

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<v Speaker 1>nutri system in South Beach. But then what really is

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<v Speaker 1>the quintessential opportunity for the company is to connect these

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<v Speaker 1>two programs to address the social determinants of health. And

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<v Speaker 1>as I shared with you before, there have been two

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<v Speaker 1>very significant legislative changes. One is by CMS which is

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<v Speaker 1>now reimbursing up to four weeks for food delivery for

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<v Speaker 1>those seniors incapable of cooking for themselves or even affording

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<v Speaker 1>food for the first month post discharge. And the Chronic

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<v Speaker 1>Care Act that was passed by the Senate in Congress.

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<v Speaker 1>Those two legislative changes really fuels this opportunity to combine

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<v Speaker 1>these two verticals and create an entirely new revenue stream

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<v Speaker 1>for the company. So one of the things I wanted

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<v Speaker 1>to ask you about as I have come to understand

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<v Speaker 1>how this all fits together, is you're seeing a lot

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<v Speaker 1>of the market, especially when it comes to wellness, go

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<v Speaker 1>higher end, you know, trying to get to the more affluent.

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<v Speaker 1>It feels like you are going the other direction in

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<v Speaker 1>a lot of ways. Well, when you look at social

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<v Speaker 1>determinants of health, let's you know, put it on the table,

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<v Speaker 1>let's let's come clean. It really is addressing that in

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<v Speaker 1>many respects, your zip code, your economic profile is really

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<v Speaker 1>going to determine your outcome more than your genetic code

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<v Speaker 1>and your right it does address a whole different population

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<v Speaker 1>than that whole upstream higher incause this is not the

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<v Speaker 1>typical audience or customer for South Beach diet. No, it's not.

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<v Speaker 1>But again, if you look at the fact that we're

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<v Speaker 1>still going to go after the demographics that are suitable

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<v Speaker 1>for South Beach, We're still going to go after the

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<v Speaker 1>demographics that are suitable for Nutra System. But the acquisition

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<v Speaker 1>of Nutri System, which was almost a year ago, was

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<v Speaker 1>to really step forward where the market is heading. Medicare

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<v Speaker 1>advantage plans which ensure now nearly twenty millions of all

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<v Speaker 1>the seniors. They have been given legislative approval to provide

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<v Speaker 1>supplemental benefits like transportation, food delivery, which speaks well to

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<v Speaker 1>the sixteen million seniors that we are managing right now. Yeah,

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<v Speaker 1>it's interesting because you guys, from what I understand, I'm

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<v Speaker 1>just looking at some of the information that you're you

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<v Speaker 1>guys have provided us a pilot program by Walmart correct

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<v Speaker 1>which certainly would tap into this population that you're looking

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<v Speaker 1>to go. Absolutely. The partnership that we signed last year

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<v Speaker 1>actually has a three legged stew to it. Yeah. One

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<v Speaker 1>of the other programs that is a corollary to Silver

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<v Speaker 1>Sneakers is our program called Prime very simply expressed, it

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<v Speaker 1>is Sneakers for the population of eighteen to sixty five.

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<v Speaker 1>We signed a partnership with Walmart to provide that program

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<v Speaker 1>to their one point four million employees. The second part

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<v Speaker 1>of the program is my vision has always been to

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<v Speaker 1>bring Silver Sneakers to where their seniors gather. Seniors gather

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<v Speaker 1>at the Walmart store every single day, why not tailgate

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<v Speaker 1>on that and put a Silver Sneakers class. And Walmart,

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<v Speaker 1>as you know, is getting into healthcare in a very

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<v Speaker 1>big way. But to what Jason said, and you know,

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<v Speaker 1>to be fair, not like I do feel like when

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<v Speaker 1>we talk wellness and stuff, it is often like a

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<v Speaker 1>higher end service. And it's interesting, as you said, to

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<v Speaker 1>kind of you know your approach, because there are lot

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<v Speaker 1>of Americans that I think are being left behind, absolutely,

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<v Speaker 1>and seniors in particular particularly. I do want to ask you,

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<v Speaker 1>because we were talking about a little bit in the

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<v Speaker 1>break and take a little bit of a turn here.

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<v Speaker 1>But you are based in a really interesting part of

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<v Speaker 1>the country right now, and you're sharing some data with

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<v Speaker 1>us about a hundred people moving to Nashville every every

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<v Speaker 1>single day, which is unbelievable. What does that tell us

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<v Speaker 1>about the addressable market and sort of the state of

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<v Speaker 1>the sort of population right now in the United States. Well,

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<v Speaker 1>I think what you do is, I think you take

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<v Speaker 1>a step back, is that people are looking for affordable

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<v Speaker 1>places to live. They're looking for communities that are very vibrant.

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<v Speaker 1>And this is no different than seniors. Seniors struggle every

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<v Speaker 1>single day with the financial makeup, the financial purchasing of homes,

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<v Speaker 1>how they pay for food. Seniors are struggling what they

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<v Speaker 1>want communities. I think this is what has made Nashville

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<v Speaker 1>so remarkably popular. It's affordable, there's communities that are being formed.

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<v Speaker 1>It's not just a community of young, it's a community

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<v Speaker 1>of old and coming together. And I think that's what

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<v Speaker 1>we really have to look at as we look at

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<v Speaker 1>cities that have become so unaffordable to take up regidency

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<v Speaker 1>and yourk happens to be one well. And I also

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<v Speaker 1>just think in a tight labor force too, if you've got,

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<v Speaker 1>you know, a hundred people moving in every day. For

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<v Speaker 1>somebody who runs you know, a company, you it sounds

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<v Speaker 1>like you have a pretty nice available pool of workers

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<v Speaker 1>to choose from. We do more growth ahead, more acquisitions,

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<v Speaker 1>um right now we want to execute and you know,

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<v Speaker 1>I think we have enough on our plate in terms

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<v Speaker 1>of focus on execution. Right. All right, well, thank you

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<v Speaker 1>so much for spending some time with this to NATO Tremuda.

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<v Speaker 1>You will be down, I believe at the NASDAK tomorrow.

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<v Speaker 1>Bringing tomorrow, I said, sorry, alright, CEO of Tivity Health

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<v Speaker 1>Lot going on a really interesting take on as Carol

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<v Speaker 1>and I talked about sort of a mega trend that

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<v Speaker 1>we're very interested in. Different, different you know, just coming

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<v Speaker 1>into this, we were talking about tough Mutter and what's

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<v Speaker 1>going on there. This is a totally different view of

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<v Speaker 1>health and wellness and addressing a population that I think

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<v Speaker 1>oftentimes does not get addressed as much when we talk

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<v Speaker 1>about it. Left behind, no doubt about it,