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1 Eyefinity Business Insights powered by THE EDGE Imagine a professional sports team coach who never looks at any stats other than his win-loss record. How long do you think this team would survive? Sports coaches use advanced statistics to understand the actual effect of each player on their team. As a business owner or office manager, you too must understand more than whether you have a win. A business-savvy professional understands the reason why there is or isn t money in the bank. The following is a list of four metrics that, if tracked will improve your bottom line significantly.
2 Month to Date Revenue Comparing the current month s total revenue* to the same month of the previous year is a commonly used metric, however in order to get an accurate picture of the effects of your efforts, the optical revenue must be viewed separately from the clinical revenue. As you can see in the image below, during the first week of June 2014, the Month to Date (MTD) total revenue was $12,000, of which $3,000 came from the optical and $9,000 came from the clinic. Month to Date Revenue Now, let s look at the revenue for the same week in The MTD total revenue is $20,000, of which $12,000 came from optical (60%) and $8,000 (40%) came from the clinic. There was a 60% increase in MTD total revenue; however the clinic revenue is actually down by 12%, while the optical revenue has risen by 75%. If we had looked only at the MTD totals, we would have felt great about the 60% increase and never uncovered that if the clinic performed at the same revenue in 2015 as it did in 2014, our MTD total revenue would have been $21,000 instead of $20,000. We can now investigate to find the leak in the clinic revenue. *Here, revenue is defined as patient responsibility (out of pocket) plus money actually received from insurance companies.
3 Revenue/Exam Gross Revenue per Exam looks solely at the amount of revenue produced by each patient opportunity. Revenue/Exam should be interaction by Optical and Clinical and tracked by location, optician and doctor. The chart shows a slight increase in Revenue/Exam in Optical and a significant increase in Clinical. Here is an example of the value of tracking revenue/exam: If you saw 20 fewer patients, but your revenue remained the same then your revenue per exam has increased; you re working smarter not harder. On the other hand, there have been times where Revenue per Exam practices have seen 30% more patients, but the revenue was only up by 15%. In that case, you are seeing more patients, but you re not generating as much revenue per patient. If this is the case, it could mean that your team is unable to handle the increased number of patients. Perhaps you need an additional employee, or possibly schedule the team differently to make certain that you have the support needed in the busiest times. Tracking revenue/exam is critical to your success.
4 Capture Rate Capture Rate Capture rate is sometimes called conversion rate as this stat relates to the number of eyewear prescriptions the doctor wrote that were captured or converted into a sale in the optical. It is interesting to note that while walk-out represents enormous revenue loss to independent eye doctors, just 23% of MBA practices ever track their eyewear sales capture rate. (Source: MBA Key Metrics) Knowing your capture rate empowers you to make informed decisions regarding marketing, pricing and overall patient satisfaction. When looking at capture rate, make certain that you are comparing apples to apples. In the OfficeMate dashboard, the Capture Rate is defined as Complete pairs of Eyewear sold per Exam. You may also want to look at Frames per Exam, or Lenses Per Exam. Increasing your capture rate increases your bottom line. Which business owner would you rather be? Uhh most of our patients buy eyewear from us at least I think they do. OR I have a 60% capture rate with a plan to raise it to 70% in the next quarter.
5 Average Frame Sale Tracking the average patient paid amount towards frames allows you to make decisions about frame price points. Tracking this information by team members, as seen in the chart below identifies outliers. As a rule of thumb, your optical team cannot control the amount insurance will re-imburse you, however the frames they choose to show have an effect on the patient s out of pocket expense and your bottom line. It s important to track how each member of the team are compared to the rest of the group. The goal is to train your team so that regardless of who helps the patient your practice will get the same results. Average Frame Sale
6 Business Insights powered by THE EDGE Eyefinity has made it easy to obtain critical information through your OfficeMate dashboard powered by the leading decision support software, The EDGE. Take a deeper dive into your practice performance and upgrade to The EDGE. The EDGE is integrated with your OfficeMate installation. The EDGE...Actionable strategies for improving your revenue.
7 Customer Feedback We review The EDGE weekly to ensure we are healthy and those decisions we ve made regarding new frame lines, accepting insurance plans, staff and doctor performance, marketing initiatives and others are performing as expected. Aaron Werner, OD The EDGE gives you the answers to those esoteric ratios that ensure you measure to manage and manage what you measure. With The EDGE, you become an MBA overnight. Frederick E. Soto, Jr., O.D., MBA, MPH, JD
8 For more information contact Gateway Professional Network, LLC. 303 Smith Street, Suite 6, 2nd Floor Farmingdale NY Eyefinity International Drive, Suite 200 Rancho Cordova, CA
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