I recently attended a New Year’s Eve event called Countdown by Insomniac. In the VIP area I saw “IV Hydration” signs on a tent with a menu taped to the door. You can get a bag of salt water infused directly into your veins for about $200-$300. Wow, I thought to myself. You can accomplish nearly the same feat by drinking two water bottles at the bar for $6 each. Having worked in the ER as an RN for over ten years and being in business for the last three I quickly ran a profit analysis in my head. This is very profitable for business and snake oil for the suckers, I mean customers that decide to get it. What once began as a secret hydration method among medical party goers behind closed doors inside hotel rooms is blossoming into a new business model for the general public. Once rumors got around, non-medical wanted the same insider treatment. The problem? The business model mirrors the exorbitant cost of healthcare in America and the price symbolizes the centralization of power of medicine and government. Let me explain.
You can literally buy everything you need to start an IV on yourself on Amazon with the exception of the iv fluids themselves. Let’s run a cost analysis and break it down into the cost of a single IV start.
IV Needles: $8.59 (5-pack) ($1.72 each)
IV Extension Set: $29.97 (5-pack) ($5.99 each)
IV Start Kit: $69.00 (25-pack) ($2.76 each)
IV Tubing: (1-pack) ($6.29 each)
IV Fluids: Normal Saline 1L: $145.00 (14-pack) ($10.43 each)
Total supplies cost: $27.19
Bear in mind these are retail prices. Most businesses buy wholesale with deep discounts of 50-70% so the cost could be as little as under ten dollars. A nurse would likely be paid a flat rate per iv start or by the hour. Let’s say they get $40 each for the sake of the argument. This brings the cost to $67.19 and at a charge of $200 that’s a profit of $132.81 each. If you’re the doctor, then you can technically sign off on these medications and let your staff handle running the business. This is what can create passive income which equals even more money for the highest earners in America. But what are they exploiting? This is where the healthcare system begins to rear its ugly head.
You see, the government plays a role by passing laws that regulate all the drugs in America. Even salt water “normal saline” is considered a drug under pharmacy protections. The medical association is made up of doctors. They are a powerful organization because they make a lot of money and they use that money in politics. They give that money to political campaigns in exchange for favorable legislation and the cycle repeats. The power of medicine is protected, normal citizens are outlawed from treating themselves, and the monopoly of pharmacy medicine results in charging whatever they want. This is why a normal person cannot buy IV fluids without a medical license and they cannot start IVs without a nursing license. This makes the barrier to entry restricted to medical personnel. When most medical jobs offer a stable, consistent income, the talent pool for this field diminishes. I know some nurses that do it as a side hustle but haven’t heard of anyone doing it full-time. I hear rumors of some nurses providing these services to the rich and famous but I take that with a grain of salt, no pun intended.
The truth is that this business model still suffers from the same problem as most high-cost service+product based businesses. The demand is very low. How often do people decide they want IV hydration? It’s typically consistent with normal viral seasonality, hot weather, and hangover cures. I feel well most of the year and it’s only dangerously hot for a couple months or so. It makes sense in music festivals because people are exposed, inebriated, and not sick enough for the medical tent. It may allow a person to recover to rejoin their friends for the rest of the festival which can be a lifesaver for planned activities and experiences. No one wants to head back to the hotel early because they went too hard, too early in the night.
A lot of people still don’t know they can call a nurse to their house and can get IV fluids. Marketing becomes a huge problem as well. These services don’t reach the majority of the public simply because they can’t afford it. This is a very small market and high competition. When dealing with the upper echelons of society it’s about who you know and what connections they have. Trust is a key component to developing a profitable business with clientele such as these.
All in all, I don’t think it’s a bad business model. If it were me, I’d find a retired doctor with their medical license and pitch them what they would make off of each IV start and get to work. It’s a pretty simple business model and all you need are the supplies above and a steady hand. I really hope one day that people are allowed to take responsibility for their own care. If educated, make decisions about their own health plans without the need for all the money hungry third parties. Cheers and keep hustling.