It pays to be the boss, or one of the bosses, at least, according to Jobson Optical Research’s and Local Eye Site’s 2013 ECP Compensation Survey. The average compensation reported for employed ODs was $107,977. The average total compensation of optometrists who were owner/partners in 2012 was reported as $141,206. The compensation for this group would include any salary they may have assigned themselves.
For more information from this survey, visit:
Would you like to make an extra $1.2 million dollars?
According to the Jobson Optical Research’s and Local Eye Site’s 2013 ECP Compensation Survey, the average owner is making 30.8 percent (or in dollars, $33,229) per year more than the employee doctor. The actual number varies by region, but across all regions, the owner makes more than the employee. If we round the number and assume the owner doctor makes $30,000 per year more than the employee doctor, over a 40 year practice career, the owner doctor makes $1.2 million dollars more than an employee doctor.
Not everyone is cut out to be an owner, but for those who are, there are three definite advantages.
1) $1.2 million dollars
2) The ability to create your own work environment–to work when you want and how you want
3) The American tax system rewards the owner and penalizes the employee
A perfect storm is beginning. The leading edge of the Baby Boomers just hit 65 a couple of years ago. As a result, over the next few years many practices will come up for sale as these Baby Boomers begin to retire. Combine that with the Affordable Care Act and the additional number of people having access to third-party coverage, and the opportunities for optometrists to become owners has never been better.
There are many resources to help you as an owner. Review of Optometric Business is one of these resources. Keep reading and applying what you learn here to your practice.
If you are an employee optometrist or a graduating optometry student, now is the time to explore becoming an owner. Become the master of your own future.