YOU ASKED: What is the best way to offset insurance losses?
WE ANSWER: Between shrinking reimbursements and rising costs, many ODs are feeling the squeeze. But there are strategies to help offset those losses without sacrificing quality care.
1. Strengthen Your Optical
Your optical dispensary is one of the most immediate ways to improve profitability. Focus on:
- Staff training to boost capture rate and average ticket size.
- Product mix optimization. Carry frames and lenses with healthy margins.
- Bundled pricing or second-pair discounts to increase per-patient revenue.
- Bring lab work in-house. While it’s an upfront cost, in-house edging can significantly reduce lab bills and improve turnaround time.
2. Adjust Fee Schedules
Evaluate your non-covered services and ensure you’re charging appropriately. This includes CL fittings, specialty testing, and procedures. If you haven’t raised private pay fees in a while, now’s the time.
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3. Expand Cash-Pay Services
Look for ways to offer high-value, cash-pay services that insurance doesn’t cover. This could include:
- Dry eye treatments (e.g., IPL, RF)
- Myopia management
- Vision therapy
- Wellness exams
These services not only offset insurance losses, they position your practice for long-term differentiation and growth.
4. Know Your Numbers
Understand your margins. If your books aren’t clean or industry-specific, it’s nearly impossible to know where you’re losing money and where you could gain. Work with a team that specializes in eyecare to help you identify opportunities and track the impact of your efforts.
Insurance losses may be out of your control but how you respond is not. With a proactive approach, you can protect your profitability and strengthen your practice heading into the new year.
