This article is more than 5 years old. Information may no longer be current.
It’s time to rethink optical
Click Here to Manage Email Alerts
Indeed, it’s a very competitive world, and eye care is no exception. We have an abundance of health care plans vying for employer contracts (and enrolled lives). And, as there is an abundance of practitioners vying for patients, insurers have no problem finding providers. It’s simple supply and demand. And the net effect of this economic reality is that we are continually pressured to provide more comprehensive services at a lower cost.
We’ve certainly experienced this with respect to professional services. Insurers influence patient access, examination content and fees paid for services – all effective strategies for securing quality care at a bargain. It should, therefore, come as no surprise that optical fees are increasingly scrutinized. Certainly, the trend away from percentage discount off customary retail and toward compensation for wholesale laboratory costs plus a dispensing fee is highly suggestive. The paltry dispensing fee is proof positive.
True, many of us find this approach appalling and offensive. But should we really be surprised? In some respects, the optical industry has been ripe for the picking for some time. Consider the fact that, for generations, retail eye wear fees have been largely influenced by a traditional “keystone” multiple mark-up system. A system that is more well-rooted in ophthalmic folklore than based upon sound financial analysis.
And it’s not just insurers who are asking questions. Consumers are becoming increasingly savvy and demanding accountability as well. As an industry that offers its share of “free lenses with frame purchase” or “buy one pair and get the second free,” it doesn’t take a rocket scientist to recognize that there must be a pretty hefty mark-up in eye wear. To confirm their suspicions, an increasing number of patients are turning to the omniscient Internet. Is it accurate to imply that more people are going online for information concerning retail purchases – eye wear included? You bet. Is the average individual optically intelligent enough to select eye wear online? Well, that’s a completely different story.
So, how do we deal with managed care’s relentless cost-cutting tactics as well as the public’s growing resentment toward paying retail for anything? You might think the answer lies in service. Well, you’re right … partially. While service is important, it’s rarely enough. We’re all aware of “market research” suggesting that consumers are willing to pay for service. The reality is that many say they will, but few actually do.
The answer actually lies in combining exceptional service with a quality product at a competitive price. Not a premium price, but a competitive price. Period. In essence, we must provide – and be perceived as providing – exceptional value. Of course, this means that our dispensaries must operate a bit more efficiently – providing patient education, service and products in a truly cost-effective format. But isn’t this true of virtually every other aspect of our practice?
In many respects, change is never easy. Occasionally, however, it’s necessary. With respect to our optical services, it’s rather urgent. Without change, your practice might lose managed care privileges or, worse yet, the confidence of your patients.