The Impact of Vision Care Plans on Practice Revenue
In the current optometry market, the proliferation of vision care plans represents a significant share of our patient demographic. This shift places greater emphasis on the strategic selection of lenses in your optical to ensure financial health. As inflation drives up overhead costs, managed vision care plans are simultaneously applying downward pressure on reimbursement rates, squeezing profit margins from both ends.
The Overlooked Decision: Lens Selection in Optometry Practices
Surprisingly, many owner ODs are not fully aware of the specific lens designs being utilized in their optical. The common practice is to entrust these critical decisions to staff or opticians. While this delegation might be convenient, it often results in choices based on comfort and familiarity, rather than optimal patient care and practice profitability. Balancing patient interests with business needs is essential for long-term success.
Managing Vision Care Orders for Maximum Profit
Vision Care Plans and Direct Lab Payments
In dealing with vision care plans like VSP and Eyemed that pay the lab directly, there’s a strategy that can maximize the financial return for your practice:
- Managed Vision Care orders:
- Select lenses and coatings from the vision care plan’s formulary that offer the highest rebate dollars from your preferred ophthalmic lens provider.
Maximizing Returns from Non-Managed Vision Care Orders
For orders outside of these managed care plans, the approach differs:
- Non-Managed Vision Care orders:
- Opt for private-label lenses and coatings that provide similar quality to name-brand options but at a more cost-effective price point.
Partners in Profit: A Strategic Approach to Lens Management
Partners in Profit has tailored negotiations with an exclusive ophthalmic lens provider to ensure our members can implement these strategies effectively. By doing so, some of our members have achieved the “Magic 20,” reflecting a COGS of just 20% and setting a new standard in the industry.
Conclusion: A Path to Financially Healthy Optometry Practice
The landscape of optometry requires a delicate balance between providing quality patient care and maintaining a profitable business. By adopting the strategies outlined above, your practice can navigate the challenges posed by managed vision care plans and inflation, ensuring a more prosperous future.
For a more in-depth discussion and personalized advice, schedule a consultation with our experts today.