THE REASONS

Independent ODs face multiple challenges that can erode profitability. A heavy dependence on vision plans, including the restrictions placed on ODs as providers for these plans, has many ODs considering changes to their business model. Medical model, specialized services, and less dependence on vision plans are trends that have gained traction over the years. I’ve seen many practices increase profitability by dropping plan(s), but this decision should be driven by a carefully thought-out strategy, not emotion.

FOR YOUR CONSIDERATION

When considering cutting ties with an insurance plan:

• Assess the current situation. Dropping insurance plans might not be a great strategy for a practice that has a lot of holes in the schedule, where you want to keep the chair full.
• Start with the least profitable plans. Don’t just base this on exam reimbursement, perform an audit to determine average total spend for patients with that plan.
• Communicate with the staff. Make sure your staff understands why you’re doing this and can competently handle questions from patients. OM