FUTURE FOCUS: OPTOMETRY

Marriage PROPOSAL

Medical optometry, do you take the modern optical to be your….

BY BILL NOLAN AND TOM BREEN

Business, as they say, can make for strange bedfellows. And, while medical optometry solidifies the profession’s future in the delivery of care, so does marrying that concept with a modern optical. It’s the best way to truly meet the needs of patients and your practice

Challenging Times/Good Times

The optometric profession has faced many challenges over the years.

1950s: In the early ’50s, practitioners had to address the decision of whether or not to charge for a patient’s refraction. It is hard for many of us to imagine a day when the 92004 Comprehensive Exam would have been completed at no charge for our patients. In those early days of optometry, however, the profession was driven exclusively by the sale of eyewear, and the refraction was seen as the means to the end.

1960s and 1970s. These decades saw even more challenges as corporate eyecare became a relevant source for exams and optical products. Contact lenses brought new vision solutions to the consumer and “marketing the business” of eyecare entered the lexicon of our cottage industry.

1980s and 1990s. Optometry looked at parity with Medicare and the beginning of managed care as the next great “challenge.”

2000s. The New Millennium ushered in unprecedented innovation and advancement to the world. The digital age has transformed the way we access information and has redefined value and how we, as consumers, relate to products and services.

Yet, through all these decades of change, optometry has survived, and in many instances thrived. There are more successful and highly profitable practices today than ever before.

What Business Are You In?

What is the business of optometry? At different times, you might determine different answers. People might say we are in the healthcare business, the eyewear business, or the service industry. With all the different ideas and concepts coming into play, each of those personas is correct.

Without question, optometry is now a full partner in the healthcare delivery system, as well as a significant provider of eyewear products. There is a strong retail dimension to our profession, and all of it operates in the context of a commitment to high-quality care and service for our patients. What each optometrist and staff member must do is create and maintain—in new and existing patients alike—a belief and understanding that their practice is the provider of choice in that marketplace.

Today, the profession is moving quickly to incorporate the medical model of care. As ACA (Affordable Care Act) and ACOs (Accountable Care Organizations) become more prevalent, particularly in large markets, it is evident that the medical model is here to stay. But an important consideration for every optometrist and business owner is revenue and the composition of where profit is generated.

Historically, the typical optometric practice has had a good mix of professional care and optical. A generous amount of net income for any practice today is still derived from the optical side of the business.

One challenge of the medical model is the temptation to abandon our optical tradition or heritage. However, we believe the optical component of practice is merely in transition. Fifteen years from now, optical will likely be a smaller part of the overall profit mix, yet it will still be present.

Best of Both Worlds

Incorporating a strong optical dispensary with advances in the diagnosis and treatment of eye diseases/disorders will continue to bring significant benefits to the patient and the practice of optometry. In order to achieve this level of success, ECPs must provide quality education on a consistent basis to the staff and doctors. Providers must institute team training and development by utilizing a variety of resources that share in the spirit of quality patient and practice care.

Statistics over time have consistently placed revenues from optical at well over 60% of revenues generated. Know what yours are. Why? Because what gets measured gets monitored, and what gets monitored is bound to change for the good.

As business owners, it is imperative to understand the numbers and lead the team’s direction of the practice. You are not necessarily the gatherer of stats, but rather, the interpreter of them. If stat collection is a foreign concept, start small and resource your optical department. Software systems today are excellent resources for such stat management.

Whatever you do, don’t let indifference to prescribing and eyewear prescriptions cloud your perception of value. ECPs are well positioned to leverage optical dispensing opportunities to better serve each patient’s complete eye health and vision care.

Remember, there is power in the pen…and the prescription pad. Patients hire you for your judgment and they rely on your recommendations in treating each of their unique eye health and vision conditions.

Based on how patients use their eyes, they may require more than one prescription. A simple illustration would be indoor versus outdoor eyewear. Also, consider patients’ use of computers and smartphones as well as environmental conditions such as workshops or laboratories.

Advancements in frame and lens technology will continue to bring excellent opportunities to the table. Education is critical here for doctors, staff, and patients.

Do you and your eyecare team understand the latest in free-form lens design, or the newest anti-reflective lens treatments that filter high-energy visible (HEV) or blue light? What lens treatments best meet your patients’ visual demands and requirements? There are many resources at your disposal; tap into them. And don’t forget about your lab representatives, as they offer extensive knowledge and information.

The more you know, the more your practice will grow.

With decades of experience in the eyecare industry, Bill Nolan and Tom Breen are the president and assistant vice president, respectively, of practice transition services at Williams Group (TheWilliamsWay.com).