o.d. to o.d.

11 Basic Facts About the Business of Eye Care

Providers across the healthcare spectrum fail to see their practices for what they are — part of a business

BY SCOT MORRIS, O.D., F.A.A.O.
Chief Optometric Editor

This month we take a deep look at the business of eye care. It is undoubtedly a very complex business model, not only from a provider’s perspective but from the industry side as a whole. In a provider’s setting, there is human resources, inventory management, purchasing, clinical care, operations, etc. There are lots of things to occupy our minds and time.

On a larger scale, the industry of eye care has a global reach and a complicated manufacturing and supply chain among its many other business aspects. If we focus on our individual practices, we still have to look at what we do like a business would.

So many providers across the healthcare spectrum feel they are healthcare providers, but fail to see their practices for what they are — part of the business. At the root of every business we must know the basic facts of who they are; what they do; how, when and where they do it; and whom they do it to.

Just the facts

Here are the basic facts about the business of eye care (or at least according to me).

1. We run a business.

2. Our business involves providing a healthcare service. We are a service provider and also selling retail products for the enhancement of visual function and health. (That is, we are a retailer.)

3. Our “patients” are consumers of these goods and services, and they have options. (In other words, we have competition.)

4. We, like any business, can separate ourselves from our competition by providing a better service or product at a greater perceived value to our consumers than our competition provides.

5. Consumers are your No. 1 priority. Without them, you are without a job.

6. New customers are harder to find and keep than existing customers. The lesson here: Don’t lose the customers you have.

7. Eighty percent of your revenue comes from roughly 20% of your consumers. Do you know which 20% of consumers that represents? Shouldn’t you find out?

8. Efficiency equals productivity. In terms of efficiency, every business has a workflow. Is yours working for or against your practice?

9. There are only three ways to make more money legally: Increase the number of encounters with the customers, decrease costs, or increase revenue per encounter, of which the last is the easiest.

10. The only place you will find success before hard work is in the dictionary.

11. No one else can do it for you.

Playing by the rules

The facts are just that — simple. Our profession is not an exception. All the other principles of running a business are the same. We need to effectively market to our demographic. We need to control our operational costs and processes. Human resources are difficult, but also our greatest asset. The leadership must plan and lead. Go back to fact #1: We run a business. How are you running yours? OM