Hot Topic: Is It Realistic For A Solo OD To Gross $1.2M?
Dear Readers,
I ended my Aug 3 blog post by asking: “Assuming the demand is there, is it realistic for a solo OD to perform 16 ‘complete exams’ per day at an average of $307 per patient and in the process, gross $1.2M?”
Here is a sampling of the feedback I received from ODs across the country who both think it can be done, and are doing it themselves!
Regards,
Jerry
Readers’ Comments
Dear Jerry,
Can you define “gross revenue” as you use it? Is it billed amounts prior to insurance reimbursement deductions, bad debt, discounts given, etc.?
Or, is it collected dollars only? In my practice there is a 10-20% difference between these two revenue amounts.
Marc Bergeron, OD
Hi Marc,
I am referring to ‘collected gross revenue’. Not billed.
Thanks for helping me clarify that.
Regards,
Jerry
Dear Dr. Hayes,
Can a solo OD produce $1.2M per year? I say NO.
16 exams per day, at least half getting dilated, 25% getting contacts, review charts even with EMRs, call patients back, perform executive duties, 5 days per week even with delegating and a competent practice manager.
I don’t think so… or at least not for very long.
The only way this could be accomplished without getting burned out is by increasing the revenue per exam. Increase the revenue by 20% and now you have 1 free day to do all your administrative work.
Dr. Muriel Nellis
Dr. Jerry,
The answer is, of course they can!
I know of dozens of ODs collecting well north of $1M per year. Some are urban, some are small town and some are rural. Most are heavily medical.
Many practices experiencing low net income and low per patient revenue are merely participating with too many low fee vision plans.
As you’ve pointed out for decades — doctors cannot make up fee discounts via increased volume.
Terry Bonds, OD
Hi Jerry,
My gross revenue is approaching $1.1M on just 4 doctor days.
I see patients 3.5 days and my senior associate sees patients just one half day. Yes. It can be done!
Michael G. Wallace, OD
Dear Jerry,
I think that Dr. Conners needs to raise his fees and make sure that he is maximizing his reimbursement.
I have a new solo practice that opened November 2008 with a current revenue per refraction of $464.
My projected gross revenue for this new practice year one is roughly $500,000.
I feel that $1.2 million for a solo practitioner is an obtainable goal.
I am also an Essilor MBA graduate and use the metrics in evaluating my own practice as well. Good luck to Dr. Conners.
Michael Bond, OD
Hi Michael,
Great job! Keep up the good work.
Regards,
Jerry
Dear Jerry,
This is one of my favorite topics.
As I approach my 30th year in practice, I continue to ask myself… can I get over that $1M mark working five days a week with my 2.5 employees?
I get close every year but never have gone over it. I am always told… just add a couple of employees and you can do it.
The two employees I have seem to spend a bit of their time on various celebrity websites. I can’t imagine what they would do with another person playing on the computer.
But I digress. The real question is “How to do that magical say… $375/patient?”
The answer has been by selling high-end frames and specialty contact lenses.
What I am talking about is a real specialty lens. Post RK, Keratoconic, orthoK, Synergeyes, RGP bifocals, etc.
Those will command a real premium. These patients will not ask price, they will only ask can you help me?
How about outrageously priced frames? You say… I live in a rural area, no one will pay for Cazal, Gucci, etc. You couldn’t be more wrong.
What I will say is that it costs a fortune to put in the product. But you can’t sell it if you don’t have it to show.
Allan Panzer, OD
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.
Back To Top
Jerry, Thank you for
Jerry,
Thank you for facilitating this discussion. I won't lie; I had no idea that single optometrist practices are grossing $1 Million per year. I never hear it discussed around the snack table at meetings.
I would love the opportunity to speak with some of the doctors above. Does the blog prohibit direct contact between the doctors or can you give me any contact information? I do think that your blog attracts a very successful group of doctors (possibly not representative of the general practicing OD), but these successful ODs are doctors that I want to think like.
Conway Cox OD ("Dr. Connors")
Dear Dr. Hayes, I write this
Dear Dr. Hayes,
I write this comment from an optician/office manager's perspective. My boss forwarded this e-mail to me because I am always up for a challenge and 1.1M in gross revenue is definitely a challenge but is obtainable! However, raising fees to maximize reimbursement is not the answer, besides, insurance companies are only going to pay you “X” dollars regardless of your fees. The key is to have dedicated employees that care as much about your practice as you do. If you have lazy employee’s (as I fear Dr. Panzar may) they can make or break your practice.
Christina Perez
Dear Jerry, I'm a solo
Dear Jerry,
I'm a solo practioner that has collected $1.1-1.3 mill for the past 3 years. My goal was to keep this revenue stream, but to go from 5 full days to 4 1/2 days and now I'm down to 3 full and 2 - 1/2 days. About 70% of my revenue is from professional fees and 30% from products. Most of the product is higher end. My practice is very medically orientated and in fact I do not participate in any vision plans (No VSP, EyeMed!). I have an excellent staff of 8.5 FTE and I delegate highly. I think a solo doc could produce 1.5-2.0 mill given adequate demand and a well run, highly delegatory practice. I want to hear suggestions/approaches from those that are achieving these numbers.
For those of you who do not
For those of you who do not think it can be done, I am sure that it will never happen for you. Set you personal goals higher as well as the goals for your staff.
I have two practices with completely different demographics. One is urban with 3 full time doctor equivalents that had net receipts in 2008 of 3.3 million.
The other practice is a new practice in a rural setting with only 1 doctor with 3 staff members working 3 1/2 days per week and should net nearly $500,000 during the first full year. My goals are for this new practice to reach the 1 million mark within 5 years.
I have some colleagues that have a two doctor practice with a net of over 2 million and they only work 3 1/2 days per week for each doctor....and do not forsee themselves ever getting burned out with this type of schedule.
For those of you who are having trouble, I would encourage you to join a peer group with high performance practices to learn how to achieve this very attainable goal.
Michael Bond, OD
I think the obvious answer to
I think the obvious answer to this is broken down to the eyes of the beholder. Those that don't think it's possible are correct...for them. Those that do think it's possible are correct...for them. All one has to do is find out how many practices across the country fall within these guidelines. (I bet there are plenty of them) and then apply many of the things that these practices do, to their own practices. This is not rocket science. True, this goal does take time and effort, with the right people on board at your practice to make it happen. But it's certainly possible and attainable.