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Despite economic downturn, future of aesthetic surgery still promising
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Aesthetic surgery has seen significant growth over the past decade, both in number of patients treated and number of products offered.
 Richard L. Lindstrom |
Industry is investing heavily in products and procedures that are elective and paid for by patients, hedging against the long-term trend of reduced reimbursement for anything that is paid for by government or any other third-party payer. The prudent ophthalmology practice is also well-advised to add a mix of products and procedures that are paid for directly by patients to their offering.
We are fortunate in ophthalmology, as the opportunities to provide services paid directly by patients are greater in our field than in many. Among others, we have the opportunity to provide spectacles, contact lenses and refractive surgery, including LASIK and premium IOLs.
Many practices, including Minnesota Eye Consultants, have also added a comprehensive offering in oculoplastic surgery. Nearly a decade ago, we added a superb fellowship-trained oculoplastic surgeon to our group of anterior segment surgeons, comprehensive ophthalmologists and primary care optometrists. The addition of both reconstructive and aesthetic plastic surgery to our offering has been a win for our patients and practice in every way. Besides adding a special partner to our group, we have enhanced the quality of care for our patients, seen increased doctor referral to all of our surgeons and enjoyed growth in ASC use and revenue.
Tracking the indices
The recent downturn in the economy has affected elective aesthetic surgery somewhat similarly to LASIK. The current economic climate has been described by some as “the rich man’s recession.” The Consumer Confidence Index, which seems to correlate well with elective LASIK volume, is at an all-time low, well less than 40 from a baseline near 100 in 2007. I was recently introduced to another useful index, the Luxury Consumption Index, which surveys more affluent households with a median income of $155,000 and an average age of 47. This index is also at an all-time low, measuring less than 40 from a baseline of 100, as well.
Following the Consumer Confidence Index and Luxury Consumption Index may allow some insight into when demand for elective surgery is likely to renew its growth. This information may help in practice planning; for example, regarding spending on external marketing for elective procedures. These indices are both available on the Internet.
Fortunately, the well-trained oculoplastic surgeon is buffered by a strong demand for reconstructive plastic surgery, which is more recession-proof. It is interesting that the more expensive elective plastic procedures, such as face-lifts and breast augmentation, seem to be more vulnerable to the economic downturn than some of the less expensive procedures common in ophthalmology practices, such as Botox injections and dermal fillers. In addition, the recently approved eyelash enhancement with latanoprost creates a new opportunity.
Overall, the future for aesthetic surgery in ophthalmology is very promising, and the most successful practices of the future will participate in this rapidly growing and rewarding field.
References:
- The Consumer Confidence Index: http://www.conference-board.org/economics/consumerConfidence.cfm
- Luxury Consumption Index: http://www.unitymarketingonline.com/cms_luxury/