Case Studies
Exploring these case studies as they provide invaluable insights by highlighting real-world applications and outcomes. They showcase best practices, uncover common pitfalls, and offer concrete examples of successful strategies.
Turning the Tide: Enhancing Profitability and Satisfaction in an MD/OD Practice with Outsourced Management
THE CHALLENGE:
This Midwest private MD/OD group has been in business since the 30s. With four optical locations, outsourced to an optical management company net revenues were dropping year over year and the business suffered from employee dissatisfaction (high turnover)
THE APPROACH:
With the practice leads, we assessed the current model, identified its shortcomings, and considered the option of continuing with an outsourced arrangement with some modifications to the agreement. However, to better achieve the practice’s goals, we ultimately decided to bring the optical services back in-house.
Our strategy included hiring an optical manager to collaborate closely with Barbra and the Leadership Team. We negotiated favorable lab contracts and curated a frame selection that aligned with the practice’s mission and values. To enhance efficiency and reflect our commitment to offering the best technology, we streamlined our lens product portfolio and implemented an updated frame merchandising process.
Additionally, we reviewed and restructured the employee compensation plan to ensure alignment with the organization’s mission and goals, fostering staff motivation and retention.
THE IMPACT:
In the first year, we achieved a remarkable 45% increase in net profits year-over-year while maintaining zero staff turnover during this 12-month period. We successfully simplified our work processes, leading to greater efficiency and productivity. Additionally, we focused on increasing our staff’s technical knowledge, further enhancing our capabilities and service offerings and, importantly, quality.
Enhancing Profitability: Addressing Vision Plan Complexities
THE CHALLENGE:
A high-volume, four-location MD/OD private practice suspected financial losses in their optical department due to a high-volume patient base on vision plans. However, they lacked the necessary tools and expertise to analyze the plans or comprehend their contracts. Key challenges included improper management of lens and material co-pays, an inability to verify correct payments during Explanation of Benefits (EOB) reconciliation across the different plans and a lack of understanding how frame reimbursements played into their frame purchasing and retail strategy
THE APPROACH:
We conducted an on-site visit to meet with the practice’s administrator and optical leaders, understanding their concerns and goals. Together, we performed a detailed analysis by evaluating the vision plans, including contracts, sub-contracts, and recent payments. We then established a profitability threshold to define the minimum financial performance required to remain in-network with a vision plan. Additionally, we assessed optical prescribing habits by analyzing current practices and forecasting revenue potential with necessary adjustments. Following this, we optimized the frame pricing strategy to ensure it aligned with in-network requirements while maximizing profitability. Barbra successfully brought the teams together, articulating common goals and purpose.
THE IMPACT:
The impact was significant. The practice strategically transitioned to out-of-network status for one vision plan that fell short of the profitability threshold, retaining over 50% of the patient base through careful planning. For the second plan, margins improved by updating the frame pricing strategy and introducing a curated portfolio of lenses and materials to offer premium patient options. Additionally, the optical staff received enhanced training on billing vision plans, understanding product benefits, and selling premium products. By focusing on one vision plan, operations became more efficient, reducing errors and increasing productivity in the optical department. This approach resulted in a 19.5% net revenue growth in the first year, a streamlined workflow, and a better overall patient experience.
Strategic Solutions: Turning Around Optical Division Performance for a Private Equity Firm
THE CHALLENGE:
A private equity firm in an accelerated growth phase discovered that their optical divisions were underperforming, with profitability in some larger acquisitions significantly declining compared to initial benchmarks. Key challenges included:
- Misaligned frame and lens purchasing strategies.
- Software integration issues lead to inefficiencies.
- High employee turnover at several locations.
- Dissatisfaction among optical employees affecting morale and productivity.
THE APPROACH:
To address these challenges, we implemented a two-phase strategy.
First, we conducted virtual interviews using a targeted questionnaire focused on key aspects of optical operations. We interviewed long-term employees from larger locations.
Next, we performed on-site evaluations, engaging with opticians, billers, and leadership to identify operational challenges and opportunities.
We documented insights, categorized them into themes such as vendor contracts and technology challenges, and developed prioritized recommendations.
Finally, we provided a detailed implementation roadmap with timelines, templates, and training resources to guide the new Optical Director, offering ongoing support to ensure successful adoption.
THE IMPACT:
The private equity firm’s leadership team received a comprehensive action plan designed to restore the optical divisions’ profitability. Key outcomes included:
- Streamlined frame and lens purchasing strategies, reducing costs and improving margins.
- Enhanced employee onboarding and development processes, reducing turnover and boosting morale.
- Optimized software integration, resulting in improved operational efficiency.
- Increased employee satisfaction and engagement, fostering a more positive workplace culture.
By focusing on high-impact, low-effort changes, the optical divisions are now positioned to return to their historical profitability levels, ensuring a sustainable and scalable model for future growth.
Streamlining Optical Operations with Technology
THE CHALLENGE:
A high-volume MD/OD practice sought to transition its optical department from a paper-based system to an optical software system to manage retail operations for contact lenses and glasses. Although the system had been purchased, the practice faced significant challenges in setting up the software. Key obstacles included configuring the product table, entering frame inventory data, and maintaining stock accuracy during the dual use of paper and software systems. Their paper-based processes were inefficient, leading to bottlenecks and errors.
THE APPROACH:
To address these challenges, we conducted an on-site evaluation of the current operations to identify roadblocks and inefficiencies. Our structured approach included:
- Workflow Optimization
We redesigned workflows to prepare the team for the transition, ensuring smoother operations both during and after the system implementation. - Lens Table and Pricing Strategy
Collaborating with the practice, we tailored the lens table configuration to account for their mix of vision plans and a significant proportion of private-pay patients. We updated pricing formulas and structures for frames, lenses, and contact lenses to align with their retail strategy and revenue goals. - Data Entry Support
A tech-savvy, detail-oriented employee was selected as the key liaison for the project. This individual worked closely with us to ensure accurate data entry, with weekly check-ins to assess progress, resolve questions, and address unforeseen challenges. - Implementation and Training
Clear timelines were established for each location’s go-live date. Comprehensive team training sessions were conducted to ensure staff confidence and proficiency with the new system.
THE IMPACT:
The successful transition to the optical software system delivered measurable improvements, including:
- Increased Efficiency
Streamlined workflows and organized data reduced errors and saved time across the department. - Enhanced Team Culture
Employees reported higher satisfaction due to clear processes and the elimination of repetitive manual tasks. - Revenue Growth
Optimizing operations, updated pricing structure and improved retail strategy contributed to a 12% increase in net income within the first year.
I simplify and enhance your business operations keeping your practice culture at the core of our work together, achieving an improved work-life balance for you and your team, while growing net revenue exponentially.
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