Leaders with LifeKraze—an online platform that facilitates active lifestyles and allows people to share accomplishments—are pivoting the business to serve businesses, starting with those in the health care industry.
They have changed the name from LifeKraze to Spire.
They are keeping the individual component of the site and business that allows participants to share progress on goals toward healthy, active living. Participants can earn points and give points to others to encourage their efforts, and then those points can be redeemed for discounts or products from designated retailers.
But they are adding a subscription-based model for businesses to participate, President and CEO Jay Kelley said. They are starting with hospitals first and have been working with Erlanger and Vanderbilt University Medical Center for pilot programs.
"We looked around at different potential employment sectors, and we decided to focus, at least initially, on the health care industry," Kelley said. "Hospitals have significantly higher rates than the national average for employees to have chronic [health] conditions."
A 2012 study from Truven Health Analytics, formerly the health care business of Thomson Reuters, found information that supports that idea—hospital employees are less healthy than the general workforce and cost more in health care costs, according to the report.
Kelley said that, according to his team's research, the average community hospital spends 68 percent of its profits on the health care of its own employees.
This addition opens up a potential customer base of 5,000 hospitals around the country, Kelley said.
And other businesses whose leaders want to cut down on health care costs or help employees meet goals can sign up for a subscription.
"In addition to what will continue to be a public community, we are going to offer a premium subscription service to these companies who would like to see health care costs go down and productivity go up," he said. "And we have looked at a lot of research that indicates that the greatest driver of health behavior is social support."
The Spire team—which is nine employees—will work with human resources and wellness managers at companies.
The cost for the subscription is charged per employee per month, and Kelley said the price was "low and affordable."
Spire leaders got some private equity funding to support the new strategic move, Kelley said.
Click here to read more about the reasoning behind the name Spire and background on the company.
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