By D. Penn Moody, OD
For independent optometrists to survive and flourish, we need to overcome antiquated thinking. Here are five mindset changes that lead to practice growth. Also included is a video: The New Profit Model: Multiple ODs in a Practice.”
Those of us who began our careers as solo optometrists in independent practices harbored certain assumptions about how our practices would grow over time. At some point, we thought about hiring an associate or adding a partner, someone who would eventually buy the practice from us. This simple strategy is one of a number of antiquated notions that we need to shed if independent ODs are to meet the challenges before us.
The following are five examples of old thinking that doesn’t work anymore–and how we need to change our thinking right now.
In addition, click here to view the video “The Profit Model: Multiple Doctors in a Practice” on how to apply new thinking to how we practice–and capture synergies that provide economic advantages.
WE TEND TO THINK
“My practice is located at 1010 South Street.”
WE NEED TO THINK
In my opinion, thinking that your office is the practice is incorrect. Our location is simply the place where patients are seen. Our real practice consists of the patients who think of us as “their eye doctor.”
WE TEND TO THINK
“If I bring in another doctor, they will take patients from me and reduce my income.”
WE NEED TO THINK
The fact is most ODs, even in the same area, have a different sphere of influence from which they draw patients…different ages, different schools for their children, different jobs for their spouses, different churches, different social activities, etc. Of course there can be some overlap, but in my experience this is more imagined than real.
WE TEND TO THINK
“The best way to increase my net is for me to work harderandto be more productive.”
WE NEED TO THINK
There is some truth to this, but the very best way to increase net is to decrease one’s break-even point. This can have profound influence on one’s net income. A simple example: the price of an OCT doesn’t change, but the cost of using it for two to three doctors is much less per doctor than if only one OD uses it. The same applies to chair time calculations, coding and billing, optical section, and many other areas of the practice.
WE TEND TO THINK
“I want to do things my way.”
WE NEED TO THINK
I believe there are only a limited number of standard of care variables in our profession. When in a group, protocols must be established that each doctor follows, but the communication inherent in working together will cause this to evolve into a comfortable protocol everyone can accept.
WE TEND TO THINK
“My practice isn’t so complicated; I can have my spouse do the books.”
WE NEED TO THINK
Be professional about finances, especially if in a group practice. One of the keys to a smooth-running group practice is having professional bookkeeping. In many practices the doctor’s spouse keeps the financial books. While this might be acceptable in a solo practice, the cost of hiring personnel to maintain a monthly general ledger and P&L is well worth the increased transparency and comfort of each of the practitioners.
Every health care provider is concerned about the changes in our healthcare system. In particular, there have been reduced reimbursements for many common procedures, although the cost of equipment, rent, insurance, staff and other overhead has not been similarly reduced. Developing a group practice with other ECPs in your vicinity can be a huge step in surviving and prospering in this new practice environment.
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D. Penn Moody, OD, is the owner of Moody Eyes, in Indianapolis, Ind. To contact him: penn@moodyeyes.com.
