Practice Trends

Managers reviewing a growing trend of Private Pay Procedures

Adjusting a practice’s focus could bring in investors and new opportunities.

Jerry Helzner, contributing editor

It has only been in recent years ophthalmology practices have been able to take advantage of the rewarding and profitable opportunities offered by private-pay procedures. Beginning with the advent of laser refractive surgery in the 1990s, more and more ophthalmologists have been able to bring self-pay (or partially self-pay) procedures into their practices. In addition to laser refractive surgery, these now include premium IOLs, phakic IOLs, refractive lens exchange, aesthetics, oculoplastics, hearing services, nutritional supplements and high-fashion optical shops. In the future, more private-pay procedures are likely to become available, including corneal implants to reverse the effects of presbyopia.

While the traditional ophthalmology practice has typically obtained the majority of its revenues from an older patient base, the majority of whom are on Medicare, the ophthalmology practice seeking to increase the percentage of private-pay income will have to focus on elements such as marketing, decor, enhanced services, patient satisfaction, an appealing and interactive Web site, and a high level of staff performance.

For example, an ophthalmology practice interested in expanding into the popular area of aesthetic procedures, may want to explore such concepts as spa-like décor and a separate waiting room for patients having aesthetic procedures. Some ophthalmology practices now set aside a half-day where only aesthetic procedures are performed.

Ophthalmologists and Cosmetic Procedures

Steven Yoelin, MD, who has developed a thriving aesthetics practice in Newport Beach, Calif., asserts that ophthalmologists have many advantages in performing aesthetic procedures and winning the trust of those patients who seek those services. First and foremost is an ophthalmologist’s familiarity with all aspects of the eye.

“My background and training as an ophthalmologist was extremely valuable (for performing aesthetic procedures) as far as I was concerned,” says Dr. Yoelin, “because ophthalmologists are well-trained to be extremely careful and detail-oriented surgeons. Such attributes help to significantly flatten the learning curve regarding the use of cosmetic enhancement products.”

Skillful Marketing is Key

Advanced Eye Care of Naples and Bonita Springs, Fla., is an example of an ophthalmology practice that has expanded its profile in self-pay procedures. Here, Alina K. Stanciu, MD, FAAO, has combined attractive facilities, an appealing and informative Web site, professional skills and innovative marketing to build the private-pay portion of her practice.

One winning strategy is to offer discounts on self-pay procedures and high-fashion eyeglasses to employees of local businesses that participate in the Advanced Eye Care corporate initiative. Participation costs the businesses nothing and allows the companies to offer employees an attractive “perk.” In return, Advanced Eye Care can distribute its marketing materials throughout these businesses, thus building practice recognition in the local communities. Individuals can also take advantage of these discounts by participating in Advanced Eye Care’s “Concierge Club.”

For patients without vision insurance, Advanced Eye Care offers a complete eye examination for $99.

The major takeaway from these examples is that expanding the private-pay percentage of an ophthalmology practice allows the practice to act in a highly entrepreneurial manner, using all of the marketing tools available to any other profit-making enterprise. This could include print and broadcast advertising, direct mail, partnerships with local businesses, community outreach activities, and almost any other initiative that enhances the reputation and recognition of the practice. OP