Guest Blog: Have Third Party Revenues Peaked For OD’s?

Dear Jerry,

Our mutual friend, Jim Thomas, the Editorial Director for OPTOMETRIC MANAGEMENT, recently sent out the following question to his editorial board.

“If we consider all the factors that impact patient care and practice management in optometry, which do you think will be most significant in the next one to three years?”

Are reimbursements about to decline?

In my opinion, the most significant change coming in the next one to three years is for independent OD’s who have come to rely on the medical portion of their practice for income. 

I think we are about to realize a negative adjustment in earnings.

We are already seeing this happen with Fellowship trained ophthalmologists. This group of MD’s has been hit extremely hard on reimbursement for consultation fees that use to be their bread and butter.

It seems likely that optometrists are about to experience the same cutbacks in Medicare, consultation codes and other third party reimbursements.

How can OD’s offset a decline in third party reimbursements?

If those cuts in revenue occur, we’ll need to go back to marketing our opticals, selling both high end and low end eyewear.  I don’t think an OD can afford to turn anyone away in this environment. 

Of course, ODs who aren't offering medical optometry to their patients will still need to invest in an OCT and other diagnostic technology. But I don’t think we can depend solely on income from medical care reimbursement going forward.  We’re going to have to offer it all.

We will need to make a better effort at promoting contact lenses in house to our already existing patients.  Plus, offer services  that aren't mainstream like low vision, vision therapy, sports therapy etc..   

I plan to go ‘above and beyond’ with each patient to include discussing proper nutrition and then offer  them  the ability to purchase quality vitamin supplements as well as ‘cosmeceuticals’  in house. 

To maintain our earnings, we must become proactive in attracting a cash paying patient base so we don’t have to rely on vision plans , HMO’s, medicare, medicaid and other medical insurances to bring patients in the door.  

Bottom line, I think medical optometry is about to see a significant reduction in third party reimbursements.  This in turn is going to force us to introduce alternative ways of bringing in more income. 

Respectfully submitted,

Mike Lange  OD, CNS

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