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HEG Executive Business Plan Summary

     
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Health Engineering Group
Management Team
  • John Fletcher ? Founder & Chief Innovation Strategist
  • Shela Fletcher ? Founder & CEO
  • Paul Grymkowski - Founder, President & International Director of HEG
  • Don Lightfoot - President & International Director of HEG Benefit Systems
  • Robert Plomgren. -   COO & Head Project Manager for Health Engineering Group
  • Robert Odwyer, MB,  - Chief Medical Director for HEG
  • Dr. Craig Wagstaff - Medical Director
  • Dr. Elena Upton - Chief Development Officer
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Year Founded
  • 2007
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Company Description
  • total wellness systems solutions provider?
  • health systems integrator
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Mission Statement
  • deliver comprehensive wellness solutions programs? focused on health,  vitality, anti-aging & longevity, and sports performance
  • improve patient outcomes through prevention, early assessment, and comprehensive management of products & protocols centering on prevention and addressing complex chronic disease, producing optimal functional health, vitality and longevity
  • develop global health networks, that focus on global paradigm health changes backed-up by hard science, to bridge the gap between science & medicine.
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HEG - Competitive Advantage
  • a uniquely talented & informed management team
  • our vision is years ahead of current healthcare system
  • first to market integrated wellness solutions, services & products
  • positioned to capture a significant share of the integrated wellness and holistic market
  • developing a far-reaching global business network that focuses on the wellness industry: addressing wellness insurance, preventative medicine and wellness products, programs & services
  • created a global business model that captures diversified revenue streams, by providing comprehensive HEG wellness products, services and programs to CAM practitioners, MDs, hospitals, clinics, pharmacists, institutions, governments and other membership orientated fitness clubs, spas, gyms, etc., both domestically & internationally
  • we are positioning ourselves at the forefront of the trillion dollar wellness revolution by pioneering global medical solutions focusing on the most current state of the art wellness products, early-warning early-detection diagnostics, wellness therapies, nutritional & nutraceutical products, and a myriad of innovative services and programs geared to the global medical & fitness markets
  • on-going research & development of health protocol methodologies & wellness based health benefits, executive compensation programs, combined with development, enhancement and marketing of wellness technologies.
  • for a competitor to duplicate the services & programs of HEG's comprehensive preventative health model & global contacts, it would take years of research and networking
  • HEG has an exclusive contract with 4HEALING, pioneering evidence-based outcomes-based medicine
  • through 4HEALING HEG anticipates to capture approximately 8.5% of the CAM market in all the major metropolitan areas in the U.S.
  • for every million of CAM patients HEG/4HEALING anticipates to serve around 500 CAM practitioners
  • launching a paradigm change in the fitness industry by pioneering a medical/fitness model with potentially three of the largest fitness organizations in the world
  • bridge the information gap between science & medicine to practitioners world-wide, thereby enhancing global healthcare
  • provide innovative clinical nutraceuticals & protocols addressing the top diseases and global health concerns
  • substantially reduce company healthcare costs and improve treatment outcomes for company employees
  • if only 2% of a company's employees are successful in avoiding the costly healthcare vortex, the 4HEALING service pays for itself. If more than 2% are helped, a company's healthcare outlays can be significantly reduced.
  • designed from the outset to be rapidly scalable, HEG/ 4HEALING intends to take its model national, and then global.
  • pioneering a business model, whereby domestic & global health practitioners will be trained in the most cutting edge medical sciences
  • HEG Provider Systems
    developing global health networks, that focus on global paradigm health changes backed up by hard science, to bridge the gap between science & medicine

    HEG Fitness lighting the way of the wellness revolution by pioneering global medical/fitness

    HEG Nutraceuticals pioneering the best internationally clinically available nutraceutical products

    HEG Benefit Systems riding the trillion dollar wellness industry revolution wave by pioneering institutional wellness programs for insured & self insured markets

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Spiraling Health Costs
  • the health care system is actually structured to reward more costly and invasive procedures
  • there is a fifteen to twenty year lag between the time hard science is known and the time it is incorporated into mainstream practice
  • physicians and hospitals do not keep and report outcomes data as a matter of course
  • there are abundant compelling scientific studies that demonstrate successful outcomes of different treatments for the same conditions at far less cost
  • physicians are largely unaware of the efficacy studies of the plethora of integrative treatments
  • consumers have been thwarted from evaluating different treatment options for a variety of reasons
  • the U.S. ranks second from the bottom, out of 13 countries for 16 top health indicators
  • every year the U.S. medical system generates around 250,000 deaths caused by doctor prescribed therapies and drugs, the third leading cause of death in America

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Core Clients
Primarily complimentary alternative medicine practitioners, nurses, hospitals, pharmacists, gyms, fitness organizations, spas, martial artist, athletes, executives and the general public
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Pending Clients (2008 Launch)
Major New York institutional banks & insurance companies, Fortune 500 companies, governments, associations, etc.
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New Markets
HEG?s synergistic wellness programs are forging new frontiers in the wellness markets.  We have focused generating revenues from a wide spectrum of resources.
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Exit Strategies
IPO, Merger ? Acquisitio Board approval required
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HEG Wellness Systems
Developing global health networks, that focus on global paradigm health changes backed up by hard science, to bridge the gap between science & medicine

HEG Fitness
Lighting the way of the wellness revolution by pioneering global medical/fitness

HEG Nutraceuticals
Pioneering the best internationally clinically available nutraceutical products

HEG Corporate
Riding the trillion dollar wellness industry revolution wave by pioneering institutional wellness programs for insured & self insured markets

Projected Consolidated Profit Centers
HEG Wellness Products
  • Early Warning Diganostics
  • Wellness Therapies
  • Nutritional Products
  • Nutraceutiacls
HEG Services
  • Anti-Aging & Chronic Disease Protocols
  • Fast Track Technology Training
  • Wellness Coaching
  • Wellness Recall
  • Green Building Consulting
  • Sports Periodization Program
  • Gourmet Anti-Aging Cooking
  • Wellness Practice Management
Other HEG Programs
  • Preventative Health Insurance
  • Wellness Clinics
  • Wellness Venture Capital Funds
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Web Address
www.financialengineeringgroup.com
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Email Address
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HEG ? Leading the Way for Medical/Fitness
HEG through it?s Founder & President, Paul Grymkowski, will pioneer Medical/Fitness both domestically & internationally.  Paul, who was president of Gold Gym?s Franchising for 20+ years, was the first to pioneer and successfully develop a fitness franchising & licensing business model that resulting in the opening of over 538+ worldwide Gold?s Gym locations in over 27 countries.  Paul has extensive domestic & global fitness contacts & is an integral part of successfully launching this Medical/Fitness model.  Paul was able to take a single gym in Venice Beach, California to become a global household name in the major metropolitan centers of the world. The Gold?s Gym brand to this day is considered to be one of the most powerful fitness brands in the world.

HEG Fitness is taking the same aggressive approach to the early stages of Paul?s gym franchising experience & applying an extremely innovative preventative medicine module to be overlayed to the domestic & global fitness market.  Currently, the fitness industry is looking for the next big wave that will truly bring into the 21st century.  HEG Fitness is carrying the torch to bring a major contribution to the fitness industry.   This contribution is helping the industry to redefine itself at this stage of its history.  The vision of HEG Fitness is 20-30 years ahead of the current healthcare & fitness system and is ?lighting the way of the wellness revolution by pioneering global medical/fitness.

4HEALING
4HEALING has contracted with Health Engineering Group, to provide state-of-the-art nutraceutical regimens, anti-aging protocols, wellness testing, and other services that are available to 4HEALING members through practitioners.
HEG is committed to make available the latest, most effective science and technology to maintain wellness and reduce costs. 4HEALING?S role is to track and report the efficacy of the HEG services.  

The founders of 4HEALING founded 1-800-DOCTORS in 1982 which provided consumers the only source of in-depth relevant information on mainstream physicians.  Significantly, the Company?s proprietary processes succeeded in getting physician compliance with data input and feedback. Other companies (i. e. Healtheon, Dr.Koop, etc.) failed to get sufficient physician acceptance of their technology. The Company became the largest physician information service in the nation processing 1.2 million patient requests annually, and was sold to a consortium led by Morgan Stanley. The company was divided and sold in parts in 1997.

Current Status ? 4HEALING has assembled the largest and best network of physicians and CAM providers in the Denver-Boulder area (500+ practitioners) including virtually all of the leadership in the major modalities. 4HEALING is fully operational. Initial sales are coming from self-insured companies and individuals. Outcomes feedback has demonstrated substantial cost savings and significantly better outcomes for members. The wholesale channel is in place. Virtually all the national benefits management firms (Mercer, Gallagher, Watson Wyatt, Aon, Mellon, etc.) have agreed to represent 4HEALING to their clients. $1.9 million has been invested to date by founders and angels.

Untapped Market
We have numerous possibilities to explore this virtually untapped market.
  The Wellness Revolution addresses fitness & wellness into one model, addressing total health, vitality, and optimum functional performance, hence the Medical/Fitness Model.

HEG will be pioneering its innovative medical/fitness services with 4HEALING.  It is anticipated that we will reach every major metropolitan area in the U.S. and eventually go global.  Our programs are designed from the outset to be rapidly scalable.

Market Size
In the next 10 years, combining the healthcare industry with the wellness industry (integrative medicine) will represent approximately $2.5 trillion, a significant amount of the U.S. economy.  

THE INDUSTRY
One-seventh of the U.S. economy, about $1.5 trillion, is devoted to what is erroneously called the ?healthcare? industry.
 Healthcare is a misnomer, as this one-seventh of the economy is really devoted to the sickness business? defined in the dictionary as ?ill health, illness, a disordered, weakened, or unsound condition, or a specific disease.

In the next 10 years, an additional $1 trillion of the U.S. economy will be devoted to the yet-unnamed wellness industry ? defined in the dictionary as ?the quality or state of being in good health especially as an actively sought goal.   The wellness industry is currently adding $200+ billion to the U.S economy.  The wellness industry is experiencing a paradigm shift, addressing prevention over the focus on disease.

In the next 10 years, combining the healthcare industry with the wellness industry (integrative medicine) will represent approximately $2.5 trillion, a significant amount of the U.S. economy.  

Sickness Industry ? The sickness industry is reactive.  Despite its enormous size, people become customers only when they are stricken by and react to a specific condition or ailment.  No one really wants to be a customer.

  • Individuals seek treatment after a disease has presented itself or developed, resulting in the highest cost of medicine in the world
  • Companies spend a significant amount on crisis medicine for their employees, reducing overall productivity and driving  up their healthcare coverage cost to all-time highs
  • Products and services are geared to treat symptoms, rather than focusing on the cure and/or the underlying cause of the disease, thereby contributing substantially to the 250,000 annual deaths in the U.S.
  • Medicine is at least 20+ years behind scientific technology and research and is a late adopter to embracing change and innovation causing needless suffering

Until recently, the ?sickness model? has dominated the healthcare system. The "sickness model" will literally bankrupt our current healthcare system unless we help people maximize healthy aging and reduce their dependence on expensive drugs.   The U.S. ranks second from the bottom, out of 13 countries for 16 top health indicators.  According to the Journal of the American Medical Association, every year the U.S. medical system generates around 250,000 deaths caused by doctor prescribed therapies and drugs. This translates into the third leading cause of death in America.

Dr. Barbara Starfield of the Johns Hopkins School of Hygiene and Public Health describes how the US health care system may contribute to poor health.  ALL THESE ARE DEATHS PER YEAR:
  • 12,000 -- unnecessary surgeries
  • 7,000 -- medication errors in hospitals
  • 20,000 -- other errors in hospitals
  • 80,000 -- infections in hospitals
  • 106,000 -- non-error, negative effects of drugs
  • These total to 250,000 deaths per year from iatrogenic causes!!

Of 13 countries in a recent comparison, the United States ranks an average of 12th (second from the bottom) for 16 top health indicators. More specifically, the ranking of the US on several indicators was:
  • 13th (last) for low-birth-weight percentages
  • 13th for neonatal mortality and infant mortality overall
  • 11th for post neonatal mortality
  • 13th for years of potential life lost (excluding external causes)
  • 11th for life expectancy at 1 year for females, 12th for males
  • 10th for life expectancy at 15 years for females, 12th for males
  • 10th for life expectancy at 40 years for females, 9th for males
  • 7th for life expectancy at 65 years for females, 7th for males
  • 3rd for life expectancy at 80 years for females, 3rd for males
  • 10th for age-adjusted mortality

Following are some health statistics that are influencing opportunities in wellness, including alarming increases in the percentages of health challenges:
  • 14 million Americans have low bone density, and 77% of the estimated 8 million who have osteoporosis are undiagnosed (National Osteoporosis Foundation);
  • 65% of the population is overweight, and 25% of those people are clinically obese (U.S. Centers for Disease Control);
  • 300,000 deaths per year are associated with being overweight and obese (U.S. Surgeon General);
  • 58 million Americans have one or more forms of cardiovascular disease, the majority of which are undiagnosed (American Heart Association);
  • 17 million have diabetes, 8 million more than estimated previously, and 5.5 million are undiagnosed (American Diabetes Association) and
  • An estimated 16 million people have the precursor to diabetes, called pre- diabetes, or insulin resistance (American Diabetes Association).

Wellness Industry ? The wellness industry is proactive.  People voluntarily become customers?to feel healthier, to reduce the effects of aging, and to avoid becoming customers of the sickness business.  Everyone wants to be a customer of this earlier-stage approach to health.
  • Individuals are involved and take accountability for their own preventative health care, thus reducing their overall healthcare cost and increasing their quality of life; HEG Fitness will bridge the information gap between science & medicine to practitioners world-wide, thereby enhancing global healthcare
  • Companies are involved in their employees? preventative health and wellness care programs and through HEG/4HEALING will substantially reduce healthcare costs and improve treatment outcomes for their employees
  • Products and services are provided to maintain a person's health, slow aging, actively prevent disease from developing, or to detect and treat disease in its early stages; HEG Fitness will market these products and services globally
  • HEG Fitness is pioneering a business model, whereby domestic & global health practitioners will be trained in the most cutting edge medical sciences

HEG is positioning itself at the forefront of the wellness revolution by pioneering global medical solutions focusing on the most current state of the art wellness products, early-warning early-detection diagnostics, wellness therapies, nutritional & nutraceutical products, and a myriad of innovative services and programs geared to the global medical & fitness markets.

Capture the Growing Wellness Market Paul Zane Pilzer, author & economist, states in ?The Wellness Revolution? that the wellness industry, which was almost non-existent 10-15 years ago, is now a '$200 billion-a-year industry'
. Members of the Baby Boomer generation are taking responsibility for their health care. They represent 28% of the current population, and account for 50% of the economy. These individuals want to stay young, as well as look better and feel better. They actively seek out preventive healthcare in large numbers.  HEG looks to capture a sizeable amount of this growing wellness market.

Each year, Americans spend the following on wellness:
  • $24 billion on health clubs (Fitness Management);
  • $70 billion on nutritional supplements (U.S. Food & Drug Administration);
  • $106 billion on preventive screenings, health and fitness advice,
    alternative health-care options, and other wellness products and services
    (Pilzer).

Paul Zane Pilzer further projects that by 2010, the wellness industry will reach $2 trillion in market size inclusive of wellness products & financial services. HEG will provide innovative clinical nutraceuticals & protocols addressing the top diseases and global health concerns.

Spiraling Health Costs -
There are multiple factors involved with the cost increases in health costs, all of which HEG/4HEALING address in a common- sense proven model. Among the reasons:
  • The health care system is actually structured to reward more costly and invasive procedures in spite of the fact that the science clearly shows that the efficacy of many of the procedures is marginally effective at achieving the desired outcome, if at all. For example, over 250,000 back surgeries are performed every year (cost: $100 Billion), in spite of the fact that the science shows little if any relief of back pain, comes from these procedures.
  • There is a fifteen to twenty year lag between the time hard science is known and the time it is incorporated into mainstream practice.   For example, in 1974 it was known that a simple B vitamin (folic acid), prevented horrible birth defects in the spine and brain. Yet it took until 1994 for the full integration of folic acid into mainstream medicine.  Countless shattered lives and billions of dollars could have been saved, had the science been incorporated into the practice of medicine. HEG/4HEALING helps doctors and patients close that gap.
    Statins (e.g. Lipitor, Crestor) are top selling drugs to treat high cholesterol. Once started, patients are usually expected to continue statin therapy for the rest of their lives costing companies and insurers billions. In a major recent meta-analysis2, Omega 3 therapies, which are available though HEG Nutraceuticals, have demonstrated to be 45% more effective than statins at preventing cardiac fatalities, and 77% more effective than statins, preventing all cause mortality in anti-lipidemic interventions. Omega 3 therapies cost a fraction of statin therapies and are more  effective, yet it will likely take 15 years to overcome huge pharmaceutical marketing and medical practice inertia until patients benefit from this science ? unless they are part of HEG/4HEALING.
  • Physicians and hospitals do not keep and report outcomes data as a matter of course. In fact, there is virtually no scientific evidence-based study on any specific practitioner?s success with any given treatment.
  • Incredibly, in spite of the medical profession?s commitment to science, the evidence that any one practitioner is likely to be successful with any treatment is purely anecdotal, with no scientific basis for choosing one practitioner from another. HEG/4HEALING is the only source of this relevant data to consumers.
  • There are abundant compelling scientific studies that demonstrate successful outcomes of different treatments for the same conditions at far less cost, and significantly less negative impact on the patient?s personal, family, and business life. HEG/4HEALING makes this information easily available to doctors and patients.
  • Physicians are largely unaware of the efficacy studies of the plethora of integrative treatments. Moreover, many of those that do look at the science are still wary of incorporating the modalities because often the treatments come from paradigms that do not fit with their education. HEG/4HEALING makes it easy to help their patients access effective options.
  • Consumers have been thwarted from evaluating different treatment options for a variety of reasons. Yet almost half of the adult population seeks alternative care not covered by their insurance every year in hopes of relief because the mainstream approach has unsatisfactory results. Among the difficulties consumers face is a lack of information:  Consumers are simply unaware that there arescientifically  validated complementary treatments for their conditions. Reliance is placed on the recommendations of their physician, who may not be aware of the options or their efficacy.  Until 4HEALING there has been no efficient way  for the consumer or health coverage provider to find, compare, and contrast different modalities of treatment, or practitioner success with any modality.

    HEG's Opportunity - As the shift in healthcare moves from the sickness model to the wellness model, there are increasing opportunities for HEG to capture a significant share of the integrated wellness and holistic market. HEG has created a global business model that captures diversified revenue streams, by providing comprehensive  HEG wellness products, services and programs to CAM practitioners, MDs, hospitals, clinics, pharmacists, institutions, governments and other membership orientated fitness clubs, spas, gyms, etc., both domestically & internationally.  

    Company Overview - HEG is positioning itself at the forefront of the evolving wellness revolution by pioneering & developing a far-reaching global business model that focuses on the wellness industry, by addressing wellness insurance, preventative medicine and wellness products, programs & services .

    Through HEG's joint venture with 4HEALING, it is anticipated that we will have access to approximately 8.5% of the total CAM market
    (41% of the general population) in all the major metropolitan areas of the U.S. (these figures are from 4HEALING'S predecessor 1-800-DOCTORS). HEG has an exclusive contract with 4HEALING to provide our wellness products, services and programs to 4HEALING'S practitioner network which should be in the tens of thousands in the next few years.  For every million of CAM patients HEG/4HEALING anticipates to serve around 500 CAM practitioners.

4HEALING combines deep data, trained counselors (concierges), and a constant feedback loop to empower consumers to get optimal care and treatments based on science.
Members and their doctors are empowered to bypass the costly medical-pharmaceutical juggernaut that too often subjects consumers to costly procedures in spite of the fact that the science has shown these costly interventions to be marginally effective, if at all e.g. spinal surgery, heart bypass operations, sinus surgery, joint replacement surgery, lifetime drug sentences, etc., 4Healing utilizes evidence-based / outcomes-based information from patient and practitioner.  The outcomes feedback has demonstrated substantial cost savings and significantly better medical choices and outcomes for members.

HEG's/4Healing's Core Strategy
: Reduce Healthcare Costs and Improve Employee Productivity ? 4HEALING sells its services to self-insured companies, individuals, and soon to third party payers, to help their employees/customers find optimal treatments based on science, while avoiding the costly vortex of the medical-pharmaceutical complex. Results in Denver have proven to substantially reduce healthcare costs and improve outcomes for 4HEALING members.  If only 2% of patients are successful in avoiding the costly vortex, the 4HEALING service pays for itself. If more than 2% are helped, healthcare outlays can be significantly reduced.

Scalable for Rapid Expansion
: Designed from the outset to be rapidly scalable, HEG/ 4HEALING intends to take its model national, and then global.

HEG will provide comprehensive health engineering wellness solutions? for integrative/holistic health care practitioners, health care providers, managed care, hospitals, self insured & insured institutions, governments etc., through a systems engineering approach that focuses on foundational optimal health & wellness programs, and demonstrates the efficacy of each clinically researched solution with comprehensive outcomes-based tracking and reporting. Our cutting edge innovative programs address & enhance a person's & institution's members overall wellness, health, vitality and erformance.

Four new operating divisions of HEG will be established, HEG Provider Systems, HEG Fitness, HEG Nutraceuticals and HEG Benefit Systems.

HEG Provider Systems will undertake efficacy evaluations, comprehensive wellness certification training programs, marketing and distribution of clinically researched wellness products, services and programs, diagnostic and bio- energetic equipment to MDs, CAM practitioners, pharmacists, nurses, hospitals, etc.  They will joint venture with HEG Fitness those programs that are overlapping, such as the gym and martial arts markets.

HEG Fitness will specialize in ?preventative medicine?, addressing the optimization of health and prevention for the fitness, spa, gym, & martial arts markets, both domestically and internationally. We are pioneering the concept of ?medical/fitness? coined by Paul Grymkowski (20 years President of Gold's Gym Franchising) to bring on a paradigm change to the fitness industry.  3 of the top global fitness organizations have indicated & expressed an interest in possibly joint venturing these programs with HEG Fitness.  Combined, their domestic & global fitness centers and gyms represent approximately 100 million total consumers by 2010.  Through the personal & business contacts of HEG Fitness, CEO, Paul Grymkowski, it is believed that a strong possibility exist that these fitness organizations will have a strong interest to market our medical/fitness model to their respective fitness members.   Significant health savings are added to the bottom line of the companies participating in the medical/fitness programs.

HEG Nutraceuticals The nutraceutical market is ready to explode globally.  By teaming up with world-class nutraceutical manufacturers we will create our own line of private label products, therefore creating a well-know national & international brand.  This innovative business model will include marketing to the MD, CAM, hospital & pharmacist markets, nutraceuticals vs. pharmaceuticals via irrefutable efficacy studies to show the benefits of using our nutraceutical products.  For example: we can initially show the dismal efficacy of the top 100 drugs and show a model using our nutraceutical replacements that have solid world class clinical studies behind them.  Hard science will stand behind our HEG private label products.

HEG Benefit Systems
primary mission is to change the current medical model.  By working with domestic & international major insurance companies & institutions HEG will develop preventive health treatment protocols for various therapies; co-develop wellness insurance products with major international insurance conglomerates; and launch an executive compensation & other self insured or insured health benefits plan delivered and administered through 4Healing, and marketed to other networks of wellness practitioners.

HEG Joint Venture with 4HEALING
4HEALING (HealingArtsNet, Inc., a closely held Delaware Corporation) is the only information services company to apply the principles of Evidence-based/Outcome-Based Healthcare nationally for Complementary, Alternative and Holistic practitioners & their patients through breakthrough, easy-to-use tools and services utilizing a well- proven business model of the membership discount access program. HEG has jointly formed a business partnership with 4HEALING? to collect, analyze, and report feedback from each participant, for development of successful outcomes while marketing wellness products, executive health benefits programs and wellness-based insurance.

Business Model ?
HEG Holdings has created a unique & integrated business model by combining our health practitioners? partnership with 4Healing with our four new business divisions, HEG Wellness Systems, HEG Fitness, HEG Nutraceuticals and HEG Consulting. These companies create a powerful synergistic revenue generator and provide HEG with diversified streams of revenues by capturing all the major revenue types in the wellness industry.

For example: HEG's projected consolidated profit centers will be derived from the following revenues:  FDA approved &/or FDA 510-K sub clinical analysis & therapies medical devices, nutritional products & nutraceuticals, anti-aging & chronic disease protocols, fast track technology training, wellness certification programs, wellness recall training, green building consulting, sports periodization program, gourmet anti-aging cooking, wellness practice management, wellness clinics, insurance & wellness based health benefits programs & royalties and equity in hybrid capital wellness funds, etc.

HEG Management ? has an accomplished and seasoned management team and has expertise in cutting edge wellness-based methodologies and product development. The principals have been involved in researching the fundamentals of nutrition, wellness, fitness and health for over 30+ years.  We are forming a Board of Advisors comprised of highly acclaimed industry experts to provide a professional forum for review of HEG?s long- term planning objectives.

Market Drivers - Health costs presently represent the fastest rowing expenditure and are expected to reach 19% of the overall economy within the next 5 years. To understand the tremendous growth opportunities within the wellness-based health & financial services industries, it is necessary to understand the existing U.S. sickness-based health insurance system:

  1. Much of the current demand for wellness products and services in the United States comes from the failure of the sickness-based health insurance to cover & address preventative medicine.
  2. Our new system of wellness health programs and services will be built on the foundation of early warning & early detection diagnostics and wellness therapies. These will focus on prevention & maximizing healthy aging vs. focusing on crisis medicine. An ounce of prevention is worth a pound of cure.
  3. Entrepreneurs and employees for new or existing companies will have to deal with the nightmare of losing their family health insurance when they decide to start their own business.

Approximately 50 million people in the United States are either self-employed or have some part of their income derived from self-employment. Through a policy change in 2003, many of these individuals will now be allowed to freely purchase part or all of their medical care on economic parity with large companies.
These astute consumers will comprise the first major group spending their own versus someone else?s money on healthcare and wellness. Over 100 million people are today gravitating towards a health and wellness-based lifestyle, and are joining membership orientated fitness clubs, spas, gyms, yoga centers and other clubs.

These competitive forces will allow consumers to choose wellness-based products or services that they desire versus the products and services forced on them.
These will be the super customers of the new Wellness-based industries, a U.S. 2 trillion market. Two compelling reasons state clearly the rising need for wellness insurance and health services:
  1. Most of the purchasing of wellness products and health services will eventually be paid for by wellness insurance.
  2. There is a great business opportunity in switching consumers from sickness-based health services to wellness-based health services.

The next trillion dollar industry is being spawned RIGHT NOW through massive scientific breakthroughs in biology, genome, phytochemical research, nutritional genomics and cellular biochemistry.
As a wellness- orientated (young & aging) population increasingly seeks to stay healthy and youthful, the benefits will flow to businesses that can effectively supply products and services based on these new scientific break-throughs. Many of the products that will take this new industry from 200 billion dollars to two trillion dollars are still in the laboratory. However, as Pilzer explains, the greatest entrepreneurial opportunities will be in distributing rather than in manufacturing wellness products and services.  

HEG Implementation Phases - HEG will be focusing on developing a distribution, marketing and delivery platform for its various products, programs and services; these will be implemented in phases:
  • Phase 1 - initial focus is to market our foundational wellness nutritional products, nutraceutical products, early warning diagnostics and wellness therapies & services to CAM practitioners and other membership orientated fitness clubs, spas, gyms, etc..  HEG Fitness will begin a 3 month beta-test with 2-9 major beta-testing fitness locations with major gym/fitness chains in Southern California & Utah to  thereby launching a domestic medical/fitness revolution.  Three of the largest fitness organizations in the world have expressed an interest in possibly joint venturing these programs with HEG Fitness upon a successful beta.
  • Phase 2 - which is under development, is to offer wellness health &financial services such as clinically researched holistic health and wellness & chronic disease protocols, (both previously developed but not widely used, and newly developed protocols), as well as executive compensation and wellness-based health plans and insurance products. Under development presently with AIG and one of New York? s top executive compensation firms is an executive compensation program.A comp benefit program is already being marketed to Wall St. firms.
 

 
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