5 Ways To Stay Up In A Down Market
The recession, as defined by economists, may be over. But the economy still feels soft to many health care providers according to Jobson Optical Research and the Wall Street Journal.
Jobson: Eyecare Market Down 3%
Jobson published an article on 7/29 stating the “total US vision care market was down 3% for the 12 months ending June 2010 according the Q2 Consumer Barometer.”
In terms of dollars, frames were down 3.1%, spectacle lenses were down 2.4% and contact lenses were down 1%.
On a positive note, they reported eye exams were up 1.4% for the same time period.
On the other hand, the WSJ ran a feature the same day titled, “Americans Cut Back On Visits To Doctors.” Big health insurance companies are reporting lower patient utilization for overall doctor visits, prescriptions and medical procedures in the second quarter of 2010.
I View The Glass As Half Full
Call me Dr. Glass Half Full. But, given that the US is coming out of the worst recession in my professional lifetime, I consider myself fortunate to work in an industry that is only down 3% in a very difficult economic environment.
I’m also confident that every progressive practice owner reading this blog can, with a little work, improve his or her revenues by 3%. Here’s how.
Five Things You Can Control
Breaking news: I don’t know a single OD who can do anything to improve the stock market, housing prices or unemployment by worrying about what they see on TV or Internet news.
But, there are at least five specific actions every ECP can take to improve the financial performance of their own practice.
- Set specific goals for annual gross revenues and net income. Your practice will not reach its financial potential until you have written goals.
- Communicate with your staff on a regular basis. Carve out 15 minutes each morning before you start seeing patients to meet with every member of your staff on a weekly basis. It can be one on one or in small groups.
- Emphasize customer service. It's very hard to improve profits by competing on price in a soft economy. Patients are demanding more these days. Give them more in terms of high touch personal service.
- Look the part. If appearances have gotten a little too casual, it may be time to dress up the office, your staff and most of all, yourself.
- Get rid of the dead wood. This a tough call in times of high unemployment. But, the time to do the inevitable, such as fire a poor performer, is immediately.
The economy is still soft and, may be for a while. So, what are we going to do about it?
If your business is down, you can’t wait on the world to change around you. Just focus on the things you can do today to make your practice more profitable.
Readers of drhayesblog.com are invited to give feedback by email or Click the red 'Click To Discuss' link below to share your thoughts. How would you handle this situation in your practice?
Regards,
Jerry Hayes, OD
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Disclaimer: The information and opinions contained on this site are for discussion purposes only and are NOT intended to serve as legal, accounting or investment advice. ©2010 Jerry Hayes, OD. Not to be reproduced without written permission of the author.
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