A Great Tactic for Raising Your Revenue Per Patient

   2/23/2017

For practices looking to grow, there are basically two paths: see more patients or generate more revenue per patient. Ideally, a practice will do both. One thing I consistently hear from ODs is that it’s hard to generate high revenue from contact lens patients. Even when selling annual supplies, the margins still aren’t great. It’s worth mentioning that the lifetime value of a contact lens patient is higher than an eyeglass patient, largely because contact lens patients have to come back more regularly than eyeglass patients. But I’d like to share one tactic I’ve heard from a Prima member that could help increase your revenue per patient. The idea is this: put together an accessible backup frame package for your contact lens patients. The OD in question hit about a $100 price point for frame and lenses. What are the advantages of this? First, it’s something your patients need. This isn’t just about making more money off your patients. Second, because of the cost of materials behind this sort of package, your gross margin will be high on a percentage basis (think $3 for the frame, less than $20 for the lenses). And don’t forget – the best opportunity (indeed, it’s almost the only opportunity) to sell something to your patient is while they’re in your office. What are some successful tactics you use to increase your revenue per patient?


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AUTHOR
NATHAN HAYES
Nathan serves as IDOC’s Practice Finance Consultant and developed the unique 3-Year Growth Plan, as a benchmarking, planning and decision-making tool for ODs. He also writes and lectures on various practice management topics.

Nathan graduated from Vanderbilt University in three years, with a degree in Spanish and a minor in mathematics. After graduating, he spent a year working abroad. During that time, he worked for two firms in San Jose, Costa Rica. He interned with Grupo Juridico de San Jose, working in environmental policy to protect a threatened parcel of land, then he worked as a project manager for a US-owned precision machining shop, Olympic Precision Machining. Nathan then spent 6 months working with street children and orphans in Mexico. Before getting into the healthcare industry, he was an Assistant Store Manager and completed the Corporate Training Program with Haverty's Furniture Company in Atlanta, GA.

Nathan serves on the advisory board for the Hayes Center for Practice Excellence at the Southern College of Optometry.

    


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