Photo courtesy of Dr. Clayton Tyler Boyd, who is seen here with his practice team. Dr. Boyd shares how to make powerful cost cuts.
Making powerful cost cuts to help propel profitability
By Clayton Tyler Boyd, OD, FAAOMS
Oct. 8, 2025
When I started seriously looking into ways to cut costs at my practice, I hoped small, actionable changes could make a real impact. What surprised me was just how much these practical steps added up—resulting in a 4 percent boost to our net profit.
Here’s how I made it happen, the numbers behind every cut and some honest lessons learned along the way.
Renegotiating My Lease: $8,400 in Annual Savings
The first and maybe most influential move was renegotiating my office lease. For most practices, rent is usually the second highest expense after payroll, often eating up 8 to 10 percent of revenue.
My previous lease was $4,200 a month—just over $50,000 a year. I knew that was high for our rural Oklahoma area, so I started researching comparable properties a full six months before my lease expired. Having this information plus our long-term tenant history gave us leverage. I offered to sign a three-year lease in exchange for a monthly rate reduction. The result: we dropped to $3,500 a month. That’s an annual savings of $8,400.
My best advice:
- Start your renegotiation early (at least six months before the end of your lease)
- Come armed with local comps and a clear value pitch for being a stable tenant
- Show you’re willing to offer a longer-term commitment for a better rate
Staff Optimization and Virtual Assistants: $16,200 in Annual Savings
Our next biggest category, staff costs, was hovering around 30 percent of revenue, and just felt high. When one of our team members asked to go part time, I saw an opportunity to try a hybrid approach: part local, part virtual assistant.
We shifted from a full-time local administrative position (with benefits, $45,000 annually) to a combination of a part-time local employee and a virtual assistant sourced through HelloRache, totaling $28,800 a year. That switch alone saved us $16,200 each year.
What the virtual assistant covers:
- Insurance verification
- Appointment scheduling (including confirmations, changes, cancellations)
- Billing follow-up, including calling patients with overdue bills
- Working extended hours to catch up on overflow tasks
The part-time in-person staff member now focuses on patient-facing tasks, works two days a week, and handles more specialized or infrequent insurance plans.
Tips for a smooth transition:
- Switch over gradually (we took three months)
- Be transparent with your team about how virtual help supports—not replaces—them
- Communicate clearly about changes to prevent anxiety and resentment
- Most patient-facing roles still benefit from a local touch, but virtual teams can drastically improve efficiency on back-office work
Energy Efficiency: $1,560 in Ongoing Yearly Savings
I wanted to tackle utilities without sacrificing comfort. After conducting a simple DIY energy audit (collecting all our bills, studying where we spent the most), I invested $3,200 in upgrades:
- Replacing all incandescent and fluorescent bulbs with LED conversions
- Installing a programmable HVAC thermostat for smart after-hours control
- Updating weather stripping and encouraging staff to power down equipment after use
Our monthly energy spend dropped from $450 to $320, for an annual savings of $1,560. It will take about two years to recoup the initial cost, but all savings from year three forward go straight to the bottom line. Plus, it just feels good to reduce our environmental impact.
Unexpected perks:
- Improved LED lighting even made it easier for some patients to use our near acuity cards
- We’re exploring using these savings for enhanced staff gifts or bonuses, which helps morale
Putting It All Together: The Power of Small, Smart Cuts
Individually, none of these steps (except for staffing) radically altered our bottom line, but together the results were significant. Our cost cuts across these three areas—rent, staffing, energy—added up to a 4 percent increase in our net profit. For a practice, that’s real money.
My experience taught me three key things:
- Small percentage improvements (even 1 to 2 percent) across your biggest expense categories can yield meaningful results
- Technology is your friend—modern solutions like virtual assistants and smart thermostats can make a major dent in costs
- Savings are only worthwhile if patient care (and staff morale) are maintained or improved
Every year, I now review our financials and re-evaluate our big expenses. I recommend every peer do the same. Start with payroll, rent and cost of goods—but don’t ignore utilities and tech.
Final Thoughts: Work Smarter
Cost cutting doesn’t have to feel like penny-pinching or reducing the value you provide. In my experience, it was all about working smarter, leveraging local conditions and modern tools, and making practical shifts easier over time.
I hope this serves as proof that every practice—regardless of location—can enhance profitability with some strategic tweaks.
Read another practice finance article by Dr. Boyd here.
Read more Finances articles on Review of Optometric Business here.
Clayton Tyler Boyd, OD, FAAOMS, is the owner of Clayton Boyd, OD in Perryton, Texas, and former associate at Guymon Vision Clinic, in Guymon, OK. To contact him: tboyd76@hotmail.com
