44
InDispensable
SEPTEMBER 2010 / Optometry Times
New opportunities
The case for in-office finishing Optometrists should optimize the entire patient eye-care experience to maintain competitiveness By Steve Swalgen
T
oday’s general economic conditions and individual business owners’ needs to maximize profit models is one underlying rationale for in-office finishing (IOF). Most independent optometrists are seeking a way to grasp fully and use more efficiently the existing equipment and technologies in their offices and may be considering, perhaps for the first time, an IOF lab. The ability of ODs to compete and retain or gain better control over their businesses and financial destinies is no longer an outsource-versus-in-house balancing act. IOF has been a mainstay ainsta for a little more than 50% of optometric tric prac practices across the United ed Sta States for about out 20 years years. However, owe it’s been en mor more common mon in Easte Eastern and Midwestern rn states sta than n Western states states. Som Some of this varia variance nce ha has been directly irectly related to prior policy icy re requi requiring specific pecific tthirddparty payer work k to o be b sent from the optometric practice to a certified or wholly owned wholes wholesale lab for fulll accom accommodation ation of the pre prescription ion job b ((surfacing facing of le lens on throug through finish finished lens prod product). ). In som some cases, ases, polici policies have prevented either independent ODs from considering con consid sideri ng IOF at all all,, o orr practices p prac rac tices that ractic that do do finish fin ish from om upg upgrading rad ing their their exist existing ist ing edgin ed edging ging
Take-Home Message Today’s general economic con conditions and individual business owners’ needs ds to maximiz maxi maximize profit models is one underlying ng rationa rationale le for in-of in-office fice finis finishing (IOF). Optometrists trists need ne to maximize the entiree patie pa patient eye-care re experi experience from om exam th through gh dispen dispensing pensin to mainta maintain ntain via viability.
technology log y to more feature-ric feature-rich h sy systems. ste Vision Se Service rvice Plan (VSP), wit with h5 55 5m million covered lives ivess and a approximatel approximately tely y2 27,0 27,000 7,0 participating g independ independent dependent end ODs, ODs, recent recently began setting what hat is anticipated to be an encour-
aging national direction. The company will be rolling out a new policy that will allow independent ODs to perform IOF for their own VSP-covered work. Because this is a significant policy shift, the business opportunity aspects cannot be underestimated. By way of developing very competitive reimbursement for single-vision jobs, ODs can increase their revenue stream (based on lens material, coatings, and addons) via IOF. The long-standing return-oninvestment (ROI) models for edging onsite are inherently strengthened by this new, and likely to expand (beyond single-vision stock lenses), initiative and policy change. Caveats to this policy exist, however, inclu cluding sourcing ssingle-vision ingle- ion lenses dire directly fro from m a wholl wholly owned wned V VSP lab.. This course urse o of action ma may bee more relat related to aud auditing ng and mai maintaining inin initial nitial distribution stribution needs of the nat national al rol rollout. lout.
Pha Phased-in sed-in in app approach
Figure 2: Santinelli/Nidek LEX-V system with autoblocking ng and drilling. (Photo (Ph provided pr by Santinelli International.) Intern Int ernationa ern onal.) l.)
VSP reports that independent ODs have responde sponded favorably avo ly to the new w policy, and d that intere interest in the “program pilots” lots” ccontinues inues to gro grow. The program am is now being impleple mented in a phased regional approach, with an exp expectation expect ectation ation that that by by early early 2 2011 011 all al l U U.S. .S. inin dependent dep depend endent op optometric tometric tometr ic practi pra practices ctices th that at handle handle VSP patients tients will be able to participate ticipate in this economic game-changing event. The independent OD practice that already edges lenses in-house will have the opportunity to maximize opportunity further and, based on the volume of single-vision lenses, will likely position the practice to upgrade to greater technology or edging tabletop platform for the lab. ODs that have not done IOF before will now be in a position to change their business models and offer a single-day—or less— turnaround opportunity, based on the chosen stock lens inventory for the practice. Edging companies provide various ROI tables for a practice to input their own level of prescription work so a realistic investment versus payoff return for new technology is easily calculable.
User-friendly, feature-rich
Figure 1: Santinelli/Nidek LE-1000-S edger with auto-safety bevel, groove, and polish. (Photo provided by Santinelli International.)
magenta cyan yellow black
Further good news is that edging technology levels for the retail environment are now more user-friendly and feature-rich than ever before. A traditional solid, yet economic, plat-
op0910_044.pgs 09.07.2010 08:33
ADVANSTAR_PDF/X-1a
SEPTEMBER 2010 / www.optometrytimes.com
form would include lens edging, automated safety beveling, grooving, and diamond luster polish (see Figure 1 on Page 44). Typically, a manual or semi-automated blocking choice, along with a direct water or tank and pump arrangement, is standard and space-conscious for even the smallest of retail store labs. Additionally, similar “system” approaches are available that enable the optometric practice to reach virtually any and all desired levels of prescription finish outcome.
The ability of optometrists to compete and retain or gain better control over their businesses and finan financiall destinies is no longer an outsource-versus-inout rce-versu house balancing hou ing act. This system approach would include highbase bas curve urve (wrap) ( p) lenss edging e ng for designerdesig nerstyle style frames fra mes along along with with drilling drill dri ing technology te techn chnology chnolo ology to address three-piece rimless mount unt styles (see Figure 2 on Page 44). The opportunity to capture a greater percentage of customers that previously hadn’t been considered is inherent in the current level of finish technology offerings. Manufacturers also have developed specific machine settings to assure on-axis results when edging super anti-reflective coated lenses. Simply, anything that can be or historically has been edged/finished at an outsourced wholesale lab is completely within the realm of IOF-available edging technologies. In fact, many—if not most—wholesale labs often use the same edgers that reside in the retail lab.
More than installation, training The edging suppliers have developed sales and service organizations that go well beyond mere installation and training on an initial IOF investment. Field service direct employees, online support, and a consultative interaction with ODs have become standard in today’s competitive retail edging environment. Extended service contracts and
magenta cyan yellow black
preventative maintenance have all become the norm of the typical 5-to-10-year life of an in-office edger.
Fate of wholesale Where does this leave the local wholesale lab? They, like all others, are learning to adjust their business models to attract and retain clientele. The policy shift by VSP has led several labs to consider further their own uncut business opportunities es with the independent OD in the aggregate. gregate. e. Wholesale ale labs la and lens ns manufacturers man manufa are already y deve developing evelop lop special programs grams whereby they y will w fu fund the OD’s edger edg pur purcha purchase— such h as as the t he monthly lease payment—based payment ent ent—ba —ba on a matrix matr atrix of monthly, uncut lenss purchases. purc purc Wholesale lesale labs, whether local ind independentepe epende or corporate-owned, porate-owned, will conti continue nue to be the conduit of in individual dividual prescription prescript iption ion lens le supply, OD practice ractice tice eeduc education, on, and and w will provide a host of patientpatient-to-practice to-practi C-SatC-Sat-based opportunities es to help ODs maintain in and grow their businesses. The extent exten ex to which hich tthe IOF opportunity opp unity for independent independent ODss is maximized maxi ed is related relate to ove overall rall demo demographic phi challenges, hallen , local local competitiveness pet veness with big-box in-store aand chain environments, env iro nts, and nd the ability ility to pro provide a lev of personal level al service servic ser and differentiation different entiat that keeps ke patient nt loyalty loy year-in,, ye year-out. ar-out This is a dynamic period of change and opportunity. opport ty. Maximizing Ma izi the entir entire patient atient eye-care experi eye-ca experience, e, from m exam through rough dispensing, will be seen as an individual practice pra ce requirement emen in no orderr to om maintain tain viability.OP via viabil bil ity.OP ity OP
Author Info
Steve Swalgen is national director— lab business, Santinelli International, Hauppauge, NY. Readers may contact Swalgen at 631/731-1325 or sswalgen@ santinelli.com.
Look for the latest news about eyewear, contact lenses, in-house finishing equipment, and other dispensing-related topics .
op0910_045.pgs 09.07.2010 08:33
ADVANSTAR_PDF/X-1a