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How to find lost profits in pediatric eye care
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Primary Care Optometry News is pleased to launch a new series of articles on "Finding Lost Profits in Optometry," a practice management topic inspired by Howard Gottlieb, OD. A leading consultant, author and lecturer to optometrists and ophthalmologists nationwide, Dr. Gottlieb will focus his articles on ways optometrists can "find lost profits" within their practices; this entails tapping into profit centers that already exist and cost nothing or very little to find. Dr. Gottlieb offers a special thanks to Robert Sanet, OD, Lemon Grove, Calif.; Paul Harris, OD, Timonium, Md.; Ken Gibson, OD, Appleton, Wis.; and Larry Lampert, OD, Boca Raton, Fla., for their contributions to this article.
Competition … managed care … reduced fees for products and services. These issues in eye care are symptoms of a mounting concern for optometrists: declining profits. To offset reduced revenues, I suggest optometrists adopt the true spirit of "Finding Lost Profits in Optometry": find new ways within their practices to increase the number of sales and the average sale and lower the cost of doing business. Today, pediatric eye care promises gains in several of these areas and can provide a number of other compelling business and professional advantages.
For optometrists, pediatric eye care offers significant long-term professional and financial opportunities. Young patients often remain with the practice well into adulthood; and their parents and siblings are likely to follow suit. The value of patient quality runs high; optometrists can actually see fewer patients, at less risk for higher revenue, which is, in many ways, a 180° turn from conventional managed care wisdom (more patients, at more risk, for lower revenue).
In general, pediatric eye care entails taking care of patients between ages 5 and 18. More narrowly defined, work may follow one of three disciplines that may or may not be interrelated:
- pediatric eye examinations,
- pediatric eyeglass dispensing and
- vision therapy (VT).
Before moving into any of these specialized market niches, I advise optometrists to ask themselves: "Do I like working with children?" If the answer is "No," or "Sometimes," I recommend looking elsewhere to develop revenue. If the answer is "Yes," I strongly urge gaining a thorough knowledge of these areas before venturing forward.
Develop a niche
As a niche market, pediatric eye care helps optometrists differentiate themselves in their respective communities and gain elevated status as specialists. Target patients (a child's parents) and influencers (educators, psychiatrists, pediatricians, etc.) hold high perceived values for optometrists possessing the ability to successfully diagnose and treat children who often cannot voice their subjective symptoms clearly.
Additionally, patient loyalty runs high; parents have been known to drive their children 50 miles or more to see a pediatric optometrist.
Find profits in eyeglass dispensing
Another area for profits is pediatric dispensing. To reap the key benefits, optometrists should capitalize on second-pair dispensing and polycarbonate lenses. Few children have not broken or lost a pair of glasses at some point in their life.
Stocking and displaying a significant array of children's frames in an imaginative and colorful manner can help optometrists build their pediatric patient base. The logic: parents may be paying for the eye wear, but children have the final say in what they will wear. To enhance the perceived value of eyeglasses for parents, optometrists should unconditionally guarantee both lenses and frames, verbally and in writing.
Vendor promotions also provide strong opportunities for optometrists to increase pediatric eye wear dispensing. One optometrist has profited from the popular Harley Davidson and Bugle Boy lines because they come with free sunglass clips. Children like them "because they look cool;" parents are pleased that their children actually enjoy wearing their eyeglasses.
Vision therapy can be profitable
A number of practitioners have demonstrated that, when done correctly, VT can be successful and profitable. What makes it lucrative? Fees typically fall outside the bounds of most managed care, indemnity and vision care programs. As a result, optometrists can bill services using a number of models, including:
- Traditional fee-for-service. Under this model, it is not uncommon for optometrists to charge $195 for a comprehensive examination and evaluation of oculomotor and binocular status, and an additional $375 for visual perception testing. For VT, optometrists have been known to bill pediatric patients $118 per hour; of that, an experienced therapist might receive $12 to $15 for his or her services. Considering that the average pediatric patient case includes 6 to 8 months of VT — and as many as two-thirds of an optometrist's pediatric case load is not covered by some form of insurance — this billing model is profitable.
- Global fees. This strategy can even prove even more profitable than fee-for-service billing because services are consolidated into one fee. Additionally, patients often pay a good portion of these fees up front, enhancing an optometrists' cash flow.
Some markets may be saturated
In some communities, optometrists may already find the market oversaturated for VT services. In those situations, practitioners may look to further market differentiation as a way to secure market share.
One enterprising optometrist-turned-businessman, Ken Gibson, OD, has built a successful business training other optometrists on offering hybrid services known as visual processing therapy. This discipline focuses more strongly on visual concentration, visual discrimination, integration, visual memory, vision processing speed and visualization skills.
Focusing on pediatric services can be a positive marketing strategy for optometrists seeking to expand their patient base.
Public relations efforts and advertising in newspapers, the Yellow Pages, on the radio and television about topics related to vision and learning, binocular vision and sports vision are effective marketing "hooks."