Use LASIK to Grow Your Dispensary
Your refractive segment should help your optical, not threaten it.
By Arthur De Gennaro

In the 1980s, ophthalmologists began to build dispensaries into their practices. The results have been dramatic. One highly reliable study found that dispensary sales often meet or exceed the revenue derived from all nonrefractive surgery performed in a practice. That's pretty impressive.

But those numbers haven't been generated from any real growth of the practices surveyed. They simply come from providing an additional service to existing patients. Ophthalmologists are still reluctant to market their optical dispensaries as their optician predecessors did. I believe their reluctance stems from:

• not wanting the practice to look like a commercial venture
• not wanting to tarnish the practice's professional image
• fear of being rejected by fellow ophthalmologists or other members of the medical community.

Let's go back to the 1980s. As you may remember, some of the predictions of what the radial keratotomy (RK) procedure would do to the ophthalmic marketplace were a bit outlandish. Some pundits said it was the beginning of the end of the ophthalmic world as we knew it. But it wasn't. Nearly all of us survived, and many prospered.

So what happened? How can you learn from that experience and apply the knowledge to the current situation with LASIK? In this article, I'll explain some factors associated with refractive surgery that you can capitalize on to build your dispensing business.

Expanding your patient base

What's most exciting about refractive surgery is that it brings to ophthalmology entirely new demographic segments. These individuals are typically younger, better-educated, more affluent, lead a more active lifestyle, and are more concerned with their appearance and image. That's a huge change from the profile of the conventional general ophthalmology practice for sure. This shift will add nearly all-new patients to the practice -- patients who will be garnered primarily from optometry and chain stores. This represents true market-share growth.

The other good news is that the size of this demographic segment is enormous, and for each person who's currently having LASIK performed, many more are potential candidates. The upside potential is nearly limitless.

But potential doesn't itself translate into more patients. The most sweeping change that refractive surgery has had on ophthalmology is to lead it into the marketing arena, an area that ophthalmologists had previously been reluctant to enter.

I won't discuss the marketing of refractive surgery in detail, only the elements that can help you drive your dispensary sales.

LASIK attracts interest

A successful refractive surgery practice starts by advertising the availability of specific vision-correction procedures. When prospective patients contact the practice they are most often routed to a LASIK coordinator. The coordinator's job is to follow patients through the protocol, from the time of initial contact to discharge.

But not everyone is a candidate for refractive surgery and still others who could be candidates don't care to undergo a procedure on their eyes, especially one that's not reversible.

If skillfully managed, this "refractive surgery fallout" shouldn't fall out of your practice but into your dispensary. These individuals represent an opportunity to maximize your investment in LASIK marketing by bringing more dollars to your optical's bottom line.

Capitalizing on the opportunity

I believe that taking the following steps will allow you to capitalize on this opportunity:

Don't ignore your dispensary. A dispensary should generate as much revenue as a practice generates in nonrefractive surgical fees, generally about 25% of overall revenue. There's no reason to let that much money simply walk out the door. Keep in mind that the new people being attracted to the practice are those who don't require medical or surgical treatment related to cataract or disease. They simply want to see clearly and look their best. Your dispensary must cater to their needs and wants, as well as the needs of your other patients.

Get into refractive surgery at a comfortable level. You don't have to be the most recognized provider of LASIK in your area to be successful. Most of my clients perform LASIK and other refractive procedures, but not as the primary focus of their practices. I believe their focus will change over time, as more procedures become available and as the eyewear-wearing public accepts the idea of surgical solutions to simple vision problems.

Hold LASIK seminars. Hold them, and use them to promote yourself and your practice, not just the procedure. No matter how well you do your marketing, a number of people will attend the seminars yet opt not to have the procedure done. Ideally, you should be able to encourage them to obtain new eyeglasses or contact lenses from your dispensary.

Let's say that you hold a LASIK seminar and 100 people attend. How many do you think will have the procedure performed within a year? 10? 25? 40? For our purposes, it doesn't matter what the number is. The point is that quite a few people who wear eyeglasses or contact lenses have come to a place to meet you and learn something about the procedure, your practice and you.

Bonus your LASIK coordinator. It's simply human nature to ask "What's in it for me?" You should consider paying your LASIK coordinator a bonus or commission for patients who go to your dispensary to look at eyewear. (Don't use the number of sales made because the coordinator has no control over making the sale, only getting the prospect there.)

Have merchandise for your new patients. It will be important to remerchandise your frame collection to appeal to the new demographic. Otherwise, all of your hard work will be lost when the prospects don't find what appeals to them.

Teach your opticians how to sell. Most opticians have never been formally trained in sales though they sell nearly all day, every day. Professional retail selling is an art and requires specific knowledge and supervised practice. All dispensaries are unit-driven, so investing in optically specific sales training is one of the best ways to garner a high return on investment.

Recommend auxiliary pairs. It's not uncommon for refractive surgery patients to use eyeglasses after surgery. All post-op patients should use sunglasses, either nonprescription or prescription. In addition, quite a few will require reading glasses only. Some post-op patients will benefit from the use of supplemental eyeglasses. Be sure to make these recommendations to your refractive surgery patients.

Implement a quality assurance program. No dispensary, or practice for that matter, should be without a stringent quality assurance program. This is a way to assure that the quality of the eyewear being dispensed exceeds industry standards. It allows you to feel comfortable about saying that to patients.

Make it a win-win situation

There's no doubt that refractive surgery is now a permanent part of the healthcare landscape. The best strategy is to work to develop your optical as a revenue-generating complement to the refractive surgery segment of your practice. 

Arthur De Gennaro is president of Arthur De Gennaro & Associates, an ophthalmic practice management consulting firm in Lexington, S.C. that specializes in dispensary profitability. He can be reached at 803-359-7887, by fax at 803-359-3996, or via e-mail at IsForU@aol.com.