Cracking the Revenue Code: 3 Growth Solutions for Health & Wellness Providers

McKinsey sizes the wellness industry at $500B in the U.S. and $1.8T globally. About 80% of American consumers say wellness is a top priority. Yet, turning this demand into real, lasting profitability feels like a constant uphill climb for many providers. Every day, they face limited coordination between various wellness professionals and endless administrative tasks that drain energy and consume two-thirds of their business time. These hurdles drain the precious energy of care providers who dedicate their lives to serving people rather than their tools. 

At the same time, clients have restricted access to specialized holistic care, such as integrative medicine and naturopathy, due to its fragmentation. In this business, consumers depend heavily on reviews and feedback from their network, so a lack of trust is a hurdle when picking a provider or modality. Especially millennials and Gen Zs, who are used to looking out for social approvals for their purchases. 

This article takes a closer look at three practical, revenue-boosting solutions aimed at helping wellness providers cut through these challenges and create a path to sustainable growth — without losing sight of their mission to help others.

Inside the U.S. Health & Wellness Market: Trends Shaping 2024

Trend 1. Demographic and Consumer Behavior Changes

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“America is getting older. Every day, 10,000 more Americans turn 65, and there are already more Baby Boomers in the U.S. than there are people in the U.K., Israel, and Switzerland combined. We’re on track for more than one in five Americans to be a senior citizen by 2040. (Half the country is already over 50.) By the way, this is also a global phenomenon: people 65 and older will soon outnumber children under 5 for the first time in history.”

Rex Woodbury, 

Founder & Managing Partner,

Daybreak venture capital firm

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As the American population ages, we see a growing demand for health and wellness services aimed at proactive, preventive care that fosters healthy aging. More people realize that traditional, symptom-focused healthcare doesn’t fully address the complexities of aging well. They’re looking for ways to manage chronic conditions more effectively, prevent new health issues, and maintain a higher quality of life as they age.

Chronic disease management has become a primary focus. Nearly 80% of older adults have at least one chronic condition, like diabetes, heart disease, and arthritis, that can severely impact daily life if not managed with consistent, personalized care. Wellness services are stepping in to provide customized support, offering guidance on diet, exercise, stress management, and even emotional health to manage diseases effectively.

People want to feel well as they grow older, and lifestyle coaching has gained momentum in this area. Seniors increasingly engage with wellness coaches to create sustainable routines supporting physical and mental well-being. These services help clients build habits around nutrition, movement, and mental clarity, enabling them to stay active and independent.

In addition to physical health, we see a strong focus on mental resilience among providers and HR buyers. Aging often brings transitions, whether it’s retirement, loss, or simply adapting to a slower pace of life. Health and wellness services address it by promoting mental wellness through mindfulness, social connection, and stress reduction techniques, empowering seniors to handle these changes positively.

The growth of health and wellness popularity is driven by a shift in how people approach aging — moving from sick care to actively investing in long-term proactive care and wellness. 

Trend 2. Specialized Care Modalities

The U.S. health and wellness market is expanding, with a notable rise in specialized care modalities such as preventative care, alternative medicine, longitudinal care, and longevity. Large employers across industries increasingly recognize the value of wellness programs to combat burnout and support employee health. Approximately 52% of U.S. companies now offer wellness programs, with 72% of employers reporting a reduction in healthcare costs after implementing such initiatives. Growing interest from large businesses positions corporate wellness as a key growth area, characterized by the highest average check size and retention rates.

Trend 3. Data-Driven Approach

The health and wellness market is seeing one of its biggest and most anticipated growth spurts. For example, the global wellness market value will grow to $8.47T by 2027. A major driver behind this shift is the data-driven approach to care delivery. Now, health and wellness care providers have a modern advantage: they can use vast amounts of data to demonstrate clients' real, measurable outcomes.

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“With a data-driven approach, wellness providers can offer proof of ROI to enterprises through detailed, segmented data on client outcomes. By analyzing coaching results across various needs, providers can show the impact of their services in clear numbers, making the value of wellness programs hard to ignore.”

Suren Avunjian,

Head of Health & Wellness, Profi  

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Trend 4. Value-Based Care

Value-based care models are gaining traction, with nearly 60% of healthcare payments in the U.S. now tied to value-based arrangements, according to the Health Care Payment Learning & Action Network. Studies also show that preventive care significantly reduces costs and improves outcomes. For example, Healthy Americans report that for every $1 spent on preventive care, the U.S. saves approximately $5.60 in healthcare costs. The broader adoption of value-based care models aligns with the goals of wellness interventions since they emphasize preventive care and overall well-being.

Trend 4. Insurance Reimbursements

At the policy level, there’s an ongoing discussion about permanently approving CPT codes specifically for wellness interventions. Currently, limited CPT billing codes — G0402, G0438, and G0439 — restrict insurance reimbursements for wellness coaching, which constrains revenue. 

In 2024, Medicare made a notable move by adding health and wellness coaching CPT codes  — 0591T, 0592T, and 0593T — to its telehealth offerings. This temporary addition, set to last through 2027, provides a window for Medicare to assess the true value of these services while awaiting peer-reviewed research to support their permanent inclusion. While this step holds promise, the real measure of success will be the impact these coaching services have on individuals within the Medicare community.

Trend 5. Rising Venture Capital Interest

Healthcare traditionally has not been attractive for venture funding due to the amount of regulation and large-established players locking in their customers, having achieved significant market dominance. 

While it's true that healthcare is the largest sector in the U.S. — around $5T, accounting for about 20% of GDP and employing roughly 20 million Americans — it hasn't always attracted significant VC interest.

However, considering consumer behavior and demand changes, the industry now attracts interest from both businesses and venture capitalists. Crunchbase reports that health and biotech startups have received most U.S. Series A funding, with approximately $5.6B invested across 110 Series A rounds, accounting for 53% of all Series A funding. 

Key Factors for Boosting Revenue in Health & Wellness Business

Personalized Preventive Care

Having been exposed to many business models in the health and wellness industry, we at Profi clearly see that providers who use a data-driven and holistic approach to their care, drive revenue through hyper-personalized, proactive preventative care.

The rise of individualized care plans — like genetic testing, in-depth marker analysis and early screenings — gives practitioners a chance to tackle obesity or diabetes before they become costly problems. This level of personalization allows clients to see fundamental, actionable changes in their health, which builds trust and long-term engagement.

Take the example of Pip Care’s surgical support program. By offering guidance before, during, and after surgery, they improve recovery times and capture core data on each phase of a client’s journey. This information provides measurable insights into what actually works for each patient, making it easy to demonstrate value. Pip Care’s approach reduced the median hospital stay from over three days to 2.4 days and lowered the risk of readmission within a week by 49% compared to patients not using their services.

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When clients see the progress backed by data, they’re more likely to stay engaged, which translates into higher retention rates and positive word-of-mouth. Data helps drive the wow effect for clients, which is the best form of advertising. Relying on programs without data is not enough in our digitally-native world.

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The market for preventative, whole-person care draws venture capital because it’s grounded in a data-centric approach. This results in tangible savings for the buyers of such services, which means the market has a measurable opportunity. 

Ready-to-Use Digital Infrastructure

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"The biggest challenge for longevity businesses is that only a small fraction achieve self-sufficiency. With a solid digital infrastructure, like virtual offerings, they can increase per-client revenue and expand their services. A digital setup allows providers to roll out multiple offerings and raise service rates, making it far easier to reach self-sufficiency and build a sustainable business model."

Garry Zmudze

Managing Partner & Co-Founder of LongeVC

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Health and wellness providers are creating hybrid experiences to broaden their reach and offer services to a broader client base, with a holistic experience for added client value to drive more sustainable results and improved business models. While traditional settings remain relevant, uplifting revenue requires a modern, intuitive, and secure digital infrastructure.

Building an operating system for a health and wellness business is a significant investment: custom systems typically cost between $500,000 and $5,000,000, with ongoing maintenance adding a significant continuous investment annually. This expense alone can prevent many providers from scaling their businesses.

You have two more options: buy software off-the-shelf or partner with a software provider to get the best of both worlds — a ready-to-use solution tailored to your needs. Pick your provider wisely, ensuring it is constantly evolving and can keep up with your growth and needs. 

Curious how Profi.io can help you increase revenue? Schedule a personalized demo with one of our experts to explore the possibilities — or, if you're a solo practitioner, try it out with our Free Trial.

Modern Client Engagement and Experience 

Increasing client retention by just 5% can boost revenue by up to 25%. Health apps, branded portals, and telehealth let clients track daily metrics — steps, blood pressure, dietary habits — and see tangible progress. Remote monitoring can improve adherence rates by up to 30%, keeping clients engaged and committed to their care plans.

The accessibility of health tracking through smartwatches and smart devices, coupled with influencers promoting wellness basics, is driving demand for continuous, holistic coaching. Today’s clients are not only more informed but are actively seeking guidance that goes beyond quick fixes to achieve lasting health changes.

The popularity of GLP-1 medications underscores this trend. While effective for weight loss, rapid reductions in body mass can lead to muscle loss and metabolic issues, opening a new market for functional training and wellness coaching to ensure sustainable, healthy outcomes. Employers are also considering including GLP-1 medications in Employee Assistance Programs (EAPs), highlighting the need for coaching that integrates medication with lifestyle support for lasting results.

At the same time, health-focused insurers like Alignment Healthcare are seeing unprecedented growth, reflecting the rising demand for senior wellness services. Alignment’s Medicare Advantage membership increased by 57.7% YOY to 182,300 members, despite a net loss of $26 million. Their guidance projects continued growth, targeting up to 186,000 members and a $40 million adjusted EBITDA by 2025. This surge, bolstered by a five-star rating from CMS on a Medicare Advantage Prescription Drug plan, shows how strongly wellness-focused services resonate with the aging population.

Clients are more engaged and invested in proactive care, driving long-term loyalty, higher retention, and growth opportunities for providers who meet this demand with personalized, measurable results.

Conclusion

Health and wellness coaching businesses face relentless revenue challenges — rising costs, high client expectations, and limited support for scaling effectively. For those in the field, the solution lies in a precise approach: 

• Investing in a secure, modern, comprehensive digital infrastructure that scales with you without excessive costs. Customers demand intuitive and professional experiences. 
• Providing a continuous, longitudinal care experience with various services - packages, programs with pre-recorded educational content, live 1:1s, group, collaborative care experience. 
• Focusing on driving specific health metrics up, the outcomes that clients can see, feel appreciated, and rave to their friends about.

Zero in on these strategies to turn revenue hurdles into sustainable growth and build a practice that supports your clients and your bottom line.