Practice profile

Tax Classification of Optometric Practices

63%19%

10%

9%

Established Practices

S Corporation

Sole Proprietor

Partnership

C Corporation63%

24%

6%

7%

New Practices

Source: MBA and FPA Practice Profile, 2010

Setting of Optometric Practices

39%

12%

24%

44%

19% 28%

16% 16%3% 1%

Enclosed shopping mall

Medical office building

Office building: mixed businesses

Strip mall

Free-standing office

100% 100%

Established Practices New Practices


Optometric Practice Specializations(% of practices specializing)

12%

12%

40%

61%

70%

73%


13%

9%

41%

53%

58%

67%

New Practices


Dry Eye Therapy

Hard-to-fit Contact Lenses

Glaucoma Treatment

Pediatric Eye Care

Low Vision

Sports Vision

Optometric Practices withLarge Ethnic Populations

(% of practices with 25% or more of ethnic group)

9%

14%

22%


14%

17%

15%

New Practices

Hispanic

African-American

Asian


Average Daily Office Hours of Optometric Practices

8.18.6

7.88.4

7.5

2.9

0.2

7.57.8

7.27.7 7.2

3.5

0.20

1

2

3

4

5

6

7

8

9

10


New PracticesTotal weekly hours (average)Established: 43.5New: 40.8


Optometric Practice Patient Composition by Device Usage

11%

34%55%


No device used

Contact lens wearers

Eyeglasses-only wearers

10%

34%56%

New Practices


Dominant Household Income Group of Optometric Practices Patients

(% of practices)

2% 1%13% 18%

38% 31%

39% 43%

9% 7%


$90,000 +

$60,000-$89,000

$40,000-%59,999

$20,000 -$39,000

< $20,000

Household Income100% 100%


Complete Eye Exams Performed in Optometric Practice

12%

30%58%


"Healthy Eye" Exams

Contact Lens Exams

Eyeglass Exams

12%

30%58%

New Practices


Eye Exam Fees in Optometric Practice

(Median Fee)


Non-contact lens wearers: $115 $110

Contact lens wearers:

Existing wearer, no fitting $141 $145

New wearer, soft spherical $185 $173

New wearer, soft toric $205 $194

New wearer, soft multi-focal $216 $205


Marketing Expense Allocation of Optometric Practices

*Includes newsletters, brochures, signage, referral programs, open houses, direct mail


12%

18%

21%

27%

22%

12%

25%

29%

17%15%

Website Media advertising

Internal marketing*

Recall Other

Established practices

New practices

New Patient Ratio(% of eye exams performed for new patients)


29%

63%


Discounted Eye Exams(% of exams provided at discounted fee as part of a managed care insurance plan)

65% 65%



Contact Lens Patients by Lens Type

56% 55%

23% 24%

12% 11%4% 5%5% 5%


RGP

Colors

Soft multi focals

Soft torics

Soft clear spheres

100% 100%


Silicone Hydrogel Lens Penetration(Median % of soft lens patients wearing)

70%

80%



Patient Walk-outs(% of patients taking prescription to another provider for product purchase)


10%

15%

10%

10%

Contact Lenses

Prescription Eyewear


New Practices

Eyewear Second Pair Discounts

25%

92%

20%

94%

Median Discount (% off)

% of Practices Offering


New Practices


Frames Sales by Retail Price Point(% of units dispensed)

11% 11%

23% 24%

31% 34%

23% 22%

11% 9%


$300 or more

$200-$299

$150-$199

$100-$149

$99 or less

100% 100%


Elapsed Time Since Last Eye Exam Fee Increase

49% 53%

18% 11%

12% 15%

22% 21%


36 months or more

24 months

18 months

Within past 12 months

100% 100%


Frequency of Staff Meetings

23% 26%

14% 14%

29% 20%

24%23%

11%17%


Less often than quarterly

Every 2-3 months

Monthly

Every 2-3 weeks

Weekly or more often

100% 100%


Staff Management Processes and Practices(% of practices implementing)

40%

42%

59%

64%

78%


38%

29%

45%

49%

67%

New Practices


Annual written performance appraisals

Written job descriptions

Written policy manual

Standard orientation for new hires

Staff uniforms

Financial Management Processes and Procedures (% of practices implementing)

25%

56%

71%


26%

56%

61%

New Practices


Written practice budget

Quantified revenue andnet income goals

Staff review of financial goals and performance metrics

Marketing Management Processes and Procedures(% of practice implementing)

18%

21%

24%

32%

34%

58%

71%


26%

22%

11%

47%

38%

61%

70%

New Practices


Written mission statement

Detailed annual marketing plan and calendar

Update practice website atleast quarterly

Capture patient email addresses

Use email as primary communication tool

Continuous patient satisfaction surveys

Routine pre-appointment

Source of New Patients

47%35%

10%

14%

10%

8%

3%

3%

6%13%

24% 29%


Other

Media advertising

Direct mail

Physician referrals

Walk-ins

Patient referrals

100% 100%


Soft Lens Annual Supply Sales(% of patients purchasing annual supply during exam visit)

10%

50%

25%


5%

50%

20%

New Practices


Two week lenses

Monthly lenses

Daily disposable lenses

Contact Lens Re-fits(% of soft lens patients re-filled with new brand material or lens type)

30%

40%



Contact Lens Inventory(% of practices with an in-office inventory)

61%

33%



Source of Soft Lens Purchases

71% 76%

29% 24%


Direct from manufacturer

Distributor

100% 100%


Spectacle Lens Product Usage(Median % of Rxes)

5%

10%

10%

20%

52%

63%


5%

10%

10%

20%

60%

66%

New Practices


Progressive lens(% of Presbyopic Rxes)

Anti-reflective

Photochromic

High-index (1.67 IR +)

Prescription sunwear

Computer lenses

Average Elapsed Time Between Eye Exams(Months)

18

14


18

14

New Practices


Contact lens patients

Eyeglass-only patients

Instrument Penetration(% of practices using one or more)

32%

37%

45%

48%

58%

71%

78%


11%

22%

24%

32%

22%

56%

51%

New Practices


Corneal pachymeter

Retinal camera

Nerve fiber analyzer

Corneal topographer

Anterior segment camera

Computerized refractionsystem

Optos

Soft Lens Annual Supply Discounts(% of practices offering)


65%

59%


Practice Website Soft Lens Re-Order Functionality

(% with service)


41%

27%


Re-Use of Existing Frames in Eyeglass Rxes

(Median % of pairs dispensed with existing frames)


18%

7%


Spectacle Lenses Dispensed: Single Vision vs. Presbyopic

59%

41%


54%

46% Single Vision

Presbyopic


Optometric Staff Experience(Average years)


6.7

2.4

8.8

5.6

Total optical experience

At practice


New Practices

Office Managers(% of practices employing)


57%

32%


2010 Staff Salary Increases(% of practices)

19%

45%

38%

22%

27% 11%

17%21%


5% or more

3 - 4.9%

1 - 2.9%

No increase

100% 100%

Average increase: + 3.0% + 2.6%


Average annual staff salary: $26,253 $22,526

Staff Bonuses


2.0%

39%

3.3%

70%

Median bonus % of salary

% Offering staff performance bonuses


New Practices

OD Practice Owner Time Utilization(% of OD work hours)

76%60%

8%

15%

6%11%

4% 7%6% 8%


Vendors, CE

Staff training

Planning

Administration

Patient care

100% 100%


Receivables Aging(% of total receivables)

60% 58%

16% 18%

13% 12%

11% 12%


120 days or longer

60-119 days

30-59 days

Less than 30 days

100% 100%


Education

Practice profile