Part 2: OD Salary Survey

Part two of our report examines how revenues have performed amid a questionable economy and a changing healthcare landscape

By Jeannie O'Sullivan

More than half of the respondents to the first Eyecare Business and Optometric Management Optometric Salary Study anticipated that their practices' gross revenues would increase compared to 2009.

In all, 54 percent of practices surveyed reported that they expected revenues to rise in the second quarter of 2010.

Respondents who own their own practice showed more optimism than those who don't. And, in terms of revenue base, the most optimistic group were respondents in businesses that currently report the lowest practice revenues—under $500,000.

Those who anticipated an increase in their practices' gross revenues attribute it primarily to two factors: an increase in patients and an economic rebound.

The other reasons most frequently cited by respondents were a still-growing/newly located clinic, more marketing, an added doctor, and more patients with insurance.

Additional factors noted include: expanding the schedule with more days/exam slots; competitive pricing; increased fees; better management techniques; improved staff training; additional diagnostic equipment; pre-scheduling; word-of-mouth referrals; decrease in overhead; patient loyalty; aging/increased population; utilization of EMR to streamline the billing process; and use of a consultant.

OVERALL CONFIDENCE

While America's opinions on the reality of a recovery run the gamut, the overall confidence expressed in this optometric survey about revenues mirrors the recent findings of the Vistage Consumer Confidence Index Second Quarter 2010, which surveyed more than 1,600 CEOs from small- to mid-sized firms in the United States.

According to the Vistage results, growth in revenues was expected by two-thirds of all firms in the second quarter, unchanged from the prior quarter, but well above the half of all firms that were reporting they expected revenue gains a year ago.

Respondents to the optometric survey from EB and OM who anticipated a decline in revenues cited a combination of factors: job losses/the economy as the number one reason, followed by changes/losses related to insurance coverage, as well as a decreased number of optometrists working at the practice. EB