SUCCESS IN CORPORATE OPTOMETRY

Kim Raharja, O.D.Atlanta, Georgia

2

U.S. PRACTICING O.D.s37,000

3

U.S. PRACTICING O.D.s37,000

9,000 (24%)Full-timecorporate affiliated

Part-timecorporate affiliated 3,500 (9%)

33% ofpracticing O.D.s}

DRIVERS OF OPTICAL CHAIN GROWTH

4

• More convenient eye care delivery

• Lower costs

• Expansion of opticals in mass merchandisers

• Advertising and promotion

RETAIL OPTICAL CHAIN SHAREOF U.S. OPTICAL MARKET

5

Chain market share

U.S. EYE CARE LOCATIONS

6

Private Practice and Other

Corporate+4% Annual Increase

-1% Annual decrease

Optical locations

MOST CORPORATE O.D.S ARE

THEIR OWN BOSS

MODES OF CORPORATE PRACTICENumber ofpositions Trend Source of income

Franchisee 1,000 Fee and product revenue

Leaseholder 1,200 Fee and contact lens revenue

Independentcontractor 4,600 Fee revenue

Employee 1,200 Salary/benefits

Associate 4,500 Hourly wage

NET INCOME POTENTIAL

Median Top 20%

Franchisee $160,000 $250,000+

Leaseholder $150,000 $225,000+

Independentcontractor

$120,000 $210,000+

Employee $85,000 $110,000

Associate, full-time $80,000 $95,000

MAJOR OPTICAL RETAILERSLuxottica LensCrafters

PearleSears OpticalTargetBJ’sDOC

$2.7 billion

Walmart WalmartSam’s Club

$1.4 billion

Highmark Vision 15 different brands $600 million

Costco Costco $500 million

NVI WalmartFred MeyerAmerica’s Best

$400 million

ONE DOOR VS. TWO DOOR STATE

One Door Two Door

Corporate Partner can collect the fees

You must collect your own fees

Corporate partner can market on your behalf

Corporate partner can not market for you

Dr’s office and optical share the entrance

Truly a separate office

Utilities can be shared Utilities are separate

CORPORATE OPTOMETRY

Myths and Realities

MYTH:

Retail chain locations are exam factories.

REALITY:

Corporate O.D.s spend as much time with each patient as private practice O.D.s

Exams per O.D. Hour

Private PracticeO.D.s

Corporate O.D.s

1.1 1.1

MYTH:

Optical retailers dictate what affiliated O.D.s mustprescribe and how exams are performed.

REALITY:

• With few exceptions, corporate O.D.s are free to recommend or prescribe any products judged best for patients.

• Corporate O.D.s establishtheir own exam process.

MYTH:

No opportunity to practice medical eye care exists in corporate practice.

REALITY:

• Optical retailers place no restrictions on medical eye care services offered by affiliated O.D.s.

• A corporate setting is not suitable for a practice specializing in medical eye care.

MYTH:

There is a ceiling on the income potential of a corporate practice.

REALITY:

• Space is the only constraint on practice size.

• Many optical retailers allow affiliates to manage multiple locations.

• As longevity at a location grows, income continues to grow.

CORPORATE PRACTICE

Cons:

• Saturday and evening hours may be required

• Less latitude in fee setting

• Less control over total patient experience

• Restrictions on practice sale

CORPORATE PRACTICE

Pros:

• Most time spent on patient care

• Freedom from product purchasing, merchandising and facilities management duties.

• Location traffic assures income

• No investment to enter

WHAT I LIKE ABOUT CORPORATE PRACTICE

THINGS TO CONSIDER

• Location, location, location!• Competition• Demographic mix• Insurance Panels• Length of stay• Optical staff• Busy times

KEYS TO SUCCESS

• Take ownership• Market the practice• Focus on the patient experience• Pay attention to recall• Staff leadership/teamwork

TAKE OWNERSHIP

KEYS TO SUCCESS

• Take ownership• Market the practice• Focus on the patient experience• Pay attention to recall• Staff leadership/teamwork

Website

Signage

Signage

Magazine

Other Marketing Tools

• Health Fairs / Vision Screenings• Team up with Daycares and Schools

KEYS TO SUCCESS

• Take ownership• Market the practice• Focus on the patient experience• Pay attention to recall• Staff leadership/teamwork

Tips When Negotiating a Contract

• Make yourself look like a desirable candidate• Hours and Days• Rent

Common Questions Asked

• What do I need to do after I get my license?• Do I need a DEA number?• What is credentialing?

Conclusion

• Corporate Optometry can be financially and professionally rewarding