Cost Benchmarking & Cost Containment
Too few ophthalmology practices review expenses or use cost benchmarking in a routine and organized fashion. Instead, the typical ophthalmic practice waits for a profit crisis and then cuts costs across the board. This approach often actually leads to even less profit, as the practice continues to spiral downward.
Just as every medical lab value for a patient has "normal limits," every line item on your financial statement can be examined through ratio analysis, to determine the health of your practice. Over the last 40 years, we have developed nearly half of the benchmarks used in our industry, and our client assessments go well beyond the basics to include labor productivity, goods costs by segment, billing efficiency dash boards, a surgical assertiveness metric and each surgeon’s net hourly profit compared to peers.
As a service business with mostly fixed costs, enhancing ophthalmic profits is more often achieved through revenue enhancement than through cost containment. We can teach you the right numbers to watch each month, how to be a better negotiator, and what to cut first--with the least amount of damage--if expenses must drop in a crisis.