One of the key benchmarks for evaluating the health of your optometry practice can be determined by measuring the revenue generated per patient. Because the medical care revolution has placed diminishing emphasis on comprehensive exams, the benchmark is perhaps not as illuminating as in the past. Still, as an owner I find the “revenue per patient” benchmark a good reference in charting the health of my practice.
The formula is simple
Doctor production (collected dollars) / # of comprehensive (full) exams (92004, 92014, 92002 92012) = Revenue per patient
Comparison with the respected MBA statistics
Here are 3 ways to increase revenue per patient
- Diagnose and manage diseases before they are moderate to severe – Most patients do not complain unless their eyes are bothering them most of the time. People in general don’t want to be complainers, and some patients in act as though complaining about their eyes is a sign of weakness. The astute optometrist asks the right questions to diagnose slight abnormalities before they become problems. This leads to better patient care. Proactive management not only solves patient eye problems early, but also builds the practice and thus increases revenue per patient.
- Prescribe specific ophthalmic lenses/coatings and contact lenses – As an optician and now as an optometrist, I had always been taught to “recommend” products. Through experience and observation it has become apparent that patients should be “prescribed” medications, ophthalmic lenses, ophthalmic coatings, and contact lenses. With a prescription, patients are far more likely to follow through and purchase the products they need.
- Invest in marketing your practice to generate new patient growth – As a general rule, most new patients to the practice generate more dollars initially than returning patients. The new patient is ready for a change or seeks services for an immediate problem, and that is most likely why they have searched for your services. The best way to generate new patients is from within. Talk to your existing patients and ask for referrals. Some of the most successful optometrists have grown their practice by respectfully asking patients for a referral. Outside of internal growth, the leading external growth modality is online dominance. Having the best online company that is optometry specific will significantly impact your revenue per patient. I’m biased with iMatrix because they have grown our practice with their product and they are a partner of OptometryCEO.
As the CEO of your optometry practice, it is extremely important to monitor the health of your practice. Of the many tools that can be used, in my opinion, revenue per patient remains a gauge that allows me to answer the question, “Am I working harder or smarter for the return on my time and money?”
