YOU ASKED: Some say there’s a benefit to separating the optical into its own business and others say it’s not worth it. Should I separate the doctor side from the optical side?
WE ANSWER: Separating them can have implications on business operations, finances, and patient experience. Here are the pros and cons of each:
PROS
- Specialized Focus: It allows each to focus on what it does best; the optical on retail and customer service, and the clinical on patient care and health.
- Financial Clarity: It’s easier to track profitability and performance of each unit separately which can simplify accounting and potentially attract partners interested in one aspect.
- Targeted Marketing: Separate strategies can be more tailored and effective. Each can target its specific market segment, potentially leading to better customer engagement and conversion rates.
- Risk Management: If one part faces legal challenges or financial issues, it may not directly impact the other, preserving overall business stability.
CONS
- Increased Operational Complexity: Separate businesses can complicate operations. You may need to double the effort in areas like administration, staffing, and inventory management, which can increase overhead costs.
- Potential for Reduced Synergy: The synergy between the two sides can benefit integrated practices. Patients enjoy the convenience of one-stop care. Losing this can impact patient satisfaction and retention.
- Higher Overall Costs: Costs, like utilities, payroll, and technology systems, can be duplicated. Each will need its own support functions, which can add up financially.
- Regulatory and Compliance Issues: Each will need to adhere to its respective regulatory guidelines, which could double the compliance responsibilities and associated costs.
