In last January’s issue of Ophthalmology Management, my first as chief medical editor, we focused on the professional and personal impact of COVID-19. The pandemic brought us new terms that became a part of our lives and lexicon: “new normal,” “social distancing,” “flattening the curve,” “variants” and more. One term in particular became popular and inevitably may remain a common mantra: being “nimble.”

While we still feel the effects of COVID-19, we now face other perhaps greater economic challenges and are inundated with a new set of words: “supply chain issues,” “tight labor market,” “rising interest rates,” “GDP,” “slow global economic growth,” “inflation” and “recession.”

A RISE IN COSTS ON THE HORIZON

As of November 2022, the US inflation rate had slowed for its fourth month to 7.7% in October, according to the US Bureau of Labor Statistics. For the first time in 30 years, inflation has risen faster than medical costs. On the surface, that’s great news, but the story doesn’t end there.

According to Cynthia Cox, vice president and director for the program on the Affordable Care Act for Kaiser Family Foundation, “there’s a lag effect.” Per health benefits consultant Mercer’s survey of more than 1,700 large employers, it is expected that the average health benefits costs will increase 4.4% this year, almost half the rate of inflation. However, the prices for medical supplies, staff salaries in a tight labor market and prescription drugs continue to rise. It is typical that insurers will pass those expenses on to employers and consumers.

According to the 2023 Segal Health Plan Cost Trend Survey, we could see a 7.4% jump in health insurance costs by 2024, and the impact of inflation on health-care costs may not truly become evident for the next 1-2 years.

IMPACT ON OPHTHALMOLOGY

Many of our practices and patients are already feeling the pinch as we face losses of investment values and an increase in costs of food, fuel and goods. But we are a resilient bunch, and with foresight and planning we can endure and end up better off in the long run. Maya Angelou once said, “My mission in life is not merely to survive, but to thrive; and to do so with some passion, some compassion, some humor and some style.”

During the COVID-19 pandemic, we learned the importance of reducing unnecessary costs, negotiating rent fees, supplier costs, delaying payables and staying on top of our receivables. We must stay vigilant with these efforts but not forget to focus on employee retention, which may include flexible staffing solutions, staff support and motivation. The cost and difficulty in recruiting new staff is greater than the cost of investing in employee growth and satisfaction. We need to protect our cash flow in this time of higher interest rates and nurture and grow our existing patient base by delivering excellent customer service. We need to improve efficiencies, streamline our practices where we can and use technology to automate where possible.

In this January edition of Ophthalmology Management, we will hear from our colleagues in private practice, academia and industry on strategies to plan, protect and grow our practices as we continue to adapt to these economic hurdles.

NOTHING IS IMPOSSIBLE

We live in a world filled with political, social and economic instability, but it’s not all doom and gloom. Being nimble and adjusting to these challenges is now our modus operandi. Using this time to optimize every aspect of our business, staff and patient care will make us stronger and more successful in the long run. As Audrey Hepburn, one of my favorite actresses, once said, “Nothing is impossible. The word itself says ‘I’m possible!’” OM

LISA K. FEULNER, MD, PHD, is Ophthalmology Management’s chief medical editor. She is the founder and CEO of Advanced Eye Care & Aesthetics in Bel Air, Md., where she specializes in cataract surgery, medical and surgical glaucoma care and dry eye disease.