Market & Opportunity

The $150 Billion Rehabilitation Chasm

American healthcare generates $150 billion in annual costs from preventable hospital readmissions and post-discharge functional decline. The root cause: no clinical bridge exists between physical therapy discharge and independent functional autonomy.

Patients are discharged "stable" but functionally vulnerable. Insurance-covered PT sessions expire. Commercial gyms offer no clinical oversight and intimidate medically complex populations. The patient regresses. The hospital readmits. The cycle repeats.

The Gap No One Fills

Segment                     Limitation

────────────────────────────────────────────────────────────

Physical Therapy            Insurance-limited (6–12 sessions),

                            no long-term metabolic monitoring

Commercial Gyms             No clinical oversight, no physician

                            reporting, intimidating environment

Concierge Fitness           Lifestyle-oriented, no diagnostic

                            infrastructure, no data export

Hospital Wellness           Low intensity, no skeletal muscle

                            focus, limited patient access

Praxis Performance occupies the white space between all four — a supervised, data-driven clinical exercise facility that generates exportable outcome data for referring physicians.

The Pasadena–South Pasadena Medical Corridor

Our Phase II Sanctuary at 625 Fair Oaks Ave, South Pasadena is positioned within one of Southern California's densest medical corridors:

• Keck Medicine of USC — Top-5 research hospital system; endocrinology and oncology referrals

• Huntington Health — Primary community hospital; orthopedic and post-surgical rehabilitation pipeline

• City of Hope — World-renowned oncology center; survivorship program referrals

• MorningStar Senior Living — Geriatric population with high need for supervised strength programming

No other facility in this corridor provides clinical-grade exercise-as-medicine with integrated diagnostic data and physician reporting.

Competitive Moat

1. Diagnostic Data Moat: Our three-platform stack generates proprietary longitudinal datasets that compound in clinical value over time

2. Physician Referral Lock-In: Once a provider receives quarterly biometric reports on their patients, switching costs are high — they won't refer to a facility that can't provide equivalent data

3. Zero-CAC Acquisition: 100% of current intakes are physician-referred, eliminating the customer acquisition cost that kills traditional fitness businesses

4. Environmental Differentiation: The Industrial Twilight / Sanctuary design eliminates the performative anxiety that prevents medical populations from engaging with commercial gyms

5. Regulatory Clarity: Our scope of practice disclosures, zero-kickback policy, and HIPAA compliance exceed any competitor — a critical trust signal for institutional referral partners