OD Survey Results: Despite The ‘Great Recession’, Most Respondents Are Still Up The First Half Of 2009
Dear Readers,
Thanks again to everyone who responded to our Sixty Second Survey. To see the complete results, click here.
Comparing 2009 Production To 2008
The majority (58%) of OD practice owners who responded to our survey show increased revenues for the first six months of 2009 as compared to the same period for 2008.
9% of the practices reported being even with 2008.
33% said they were down for the first six months of this year.
Forecast For The Balance Of 2009
Almost two-thirds (63%) of the responding ODs predict their full year revenues for 2009 will be up when compared to 2008. 35% expect to be up over 5%.
14% expect revenues to be even for the year 2009 as compared to 2008.
Only 22% of responding practice owners expect their 2009 revenues to less than 2008.
Who Responded To This Survey?
This is a blind survey sent to readers of drhayesblog.com. We had 217 responders all of whom claimed to be OD practice owners.
80% reported being in practice more than five years.
The breakdown by annual collected gross revenues for 2008 was:
• 30% produced over $1,000,000
• 17% produced $750,000 to $999,999
• 32% produced $500,000 to $749,000
• 21% produced less than $500,000
Are The Survey Results Too Positive?
I ask that question because I was accused of being Pollyannaish and
unrealistic on another blog after publishing similar results in April
from my Q1 survey.
Maybe my blog attracts more successful ODs. Or, maybe ODs not doing well are less likely to respond.
Either way, the results are not doctored in any way and most
respondents (67%) report doing well in spite of the worst recession of
our professional careers.
3 Reasons I Think Private Practice Optometry Continues To Prosper:
1. Consumers see eyecare and eyewear as affordable health needs that can’t be ignored.
2. Optometric services are relatively low ticket and offer high value.
Services requiring big dollar layouts such as cosmetic dentistry and plastic surgery have been hit hard during the recession. Those patients are either debt averse or cannot get financing for elective procedures.
3. Love ‘em or hate ‘em, third-party vision plans have seen increased utilization and continue to bring patients into your practice.
Readers’ Comments: Positive
• When I decided that I can’t control the banks, stock markets, and
automakers; stopped watching the news; and started to focus on my
business, staff, and patients is when my practice really took off. I’ve
had 2 consecutive best months ever!
• Hang in there and be totally committed to your practice.
• I live in Michigan. You can laugh or cry; more fun to laugh! I think (hope) we are close to the bottom.
• Keep your spirits up, stay focused on delivering quality patient
care, encourage staff morale, minimize excess waste, work hard and ride
out the storm!!!
• Now is the time to forge ahead and upgrade your practice in every way possible.
• THINKING ABOUT BUILDING A NEW OFFICE???… BUILD IT!!!!
• Gross collections are down 4%, but our net is up due to more streamlined operation.
• The recession has forced us to tighten our belt and look at the
business side of our practice more closely. I realize all of the waste
I was missing.
• We’re not sure why the numbers are up. We know that in Jan and Feb
we had patients worried they would lose jobs and wanted to use their
vision benefits before they lost them, but we are booked out farther
than ever before. We have seen fewer exams turned into materials sales
in glasses, more people keeping frames and buying new lenses, but
contact lens business has been steadily increasing.
• Let’s try to think outside the box to compete but NOT reduce
ourselves to the attitude of a “store” versus a medical environment
where we happen to have the medical device (contacts, glasses etc..)
that this patient might need. We need to maintain our professionalism
even during a recession.
• As a courtesy to patients in our rural area that have been
impacted by loss of employment or benefits, our practice offers an
optional nominal discount to help curb some of the financial stresses
being felt by our local residents. We have retained many patients that
may have gone to a lesser priced optical and sacrificed the service and
quality that they deserve.
Readers’ Comments: Negative
• All of my patients are broke, or afraid.
• The insurance companies are the devil to which we have sold our
souls. They are too manipulative and controlling and make patients
think they are getting something for nothing.
• Seeing MORE patients this year than last year, but NET income down
due to heavy discounting of VSP. 60% of my vision exams are now VSP.
• Problems could show up in the next 6-12 months as I feel we are a trailing indicater of the economy.
• Cash patient volume is down substantially for us. I subscribed to
previous suggestions in dropping a number of vision insurance plans —
this was fine in good times but is disastrous now. Major medical
involvement is difficult in California. Overall, this is a very
discouraging time — especially after my best year in 2008.
Agree with this blog? Disagree? Have a comment or question of your own? Click here to send me an e-mail.
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. ©2009 Jerry Hayes, OD. Not to be reproduced without written permission of the author.
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I took the survey and was
I took the survey and was anxious to see the results but I see I am in the minority with a net reduction in income this year. I am in Michigan and we have had some big industry close down so I blame the economy but obviously it doesn't impact all practices. It would be interesting to know the geographical location of the respondents. We typically grow at least 10% per year so this makes me nervous.