Photo credit: Getty Images
Benchmarking
By Bradley Lane, OD, MBA, MEd
April 30, 2025
In the dynamic field of optometry, the phrase “what gets measured, gets improved” holds significant weight. Benchmarking—systematically measuring key performance indicators (KPIs)—is not just a business buzzword but a critical strategy for continuous improvement in eye care practices.
Without data-driven insights, it’s challenging to identify areas needing attention or to track the impact of implemented changes.
Why Benchmarking Matters
Benchmarking provides a clear picture of your practice’s performance over time, allowing you to set realistic goals and strategies for growth.
However, the key to effective benchmarking is consistency. Metrics must be calculated the same way each time to ensure you’re comparing apples to apples. This consistency helps in identifying genuine trends rather than anomalies caused by inconsistent data collection methods.
What Could You Measure for Benchmarking?
Capture Rate: This measures the percentage of patients who purchase eyewear from your practice compared to those who received a prescription. Improving your capture rate can significantly boost revenue and patient loyalty.
Revenue Per Patient: This KPI helps you understand the average revenue generated per patient visit. By analyzing this figure, you can identify opportunities to enhance services or recommend premium products more effectively.
Patients Per OD Hour: This metric evaluates the efficiency of your clinical operations. A balanced number ensures optimal patient care without overburdening your staff.
Days Receivable Outstanding (DRO): Monitoring DRO helps manage cash flow by tracking how quickly your practice collects payments. A lower DRO means healthier cash flow and better financial stability.
Medical Exams vs. Routine Exams: Calculating the ratio between medical and routine exams can provide insight into your practice’s focus and help balance services to meet both medical and vision care needs.
Revenue from Co-Managing: Tracking revenue derived from co-managing patients with other health care providers can help identify growth opportunities in this collaborative care model.
Other Articles to Explore
Refractions per OD Hour: Tracking refractions per OD hour can reveal efficiencies within the practice. Interestingly, our offices found optimal success with around 1.7 refractions per OD hour. This balance ensures patients are delivered to the optical in a timely manner, allowing our opticians ample time to educate patients on various eyewear features. It also leaves sufficient time in the schedule to provide outstanding medical care, which is a passion for me.
The Psychology of Measuring Performance via Benchmarking
There is a psychological component to performance measurement. When individuals know their performance is being tracked, they tend to become more engaged and motivated—this is known as the Hawthorne effect.
The simple act of measurement brings awareness, which fosters accountability and drives improvement. Additionally, clear, quantifiable goals can provide a sense of purpose and direction for both practitioners and staff.
Getting Started Benchmarking
Choose three to four KPIs that align with your practice goals, establish baseline measurements and track them consistently. It really doesn’t matter what you track—the key is to find an aspect of your business that you want to improve and start measuring it.
You can use one suggested in this article or discover one of your own. Regular reviews of these metrics will highlight areas of improvement, celebrate successes and guide strategic decisions.
In optometry, as in all business ventures, the path to excellence is paved with consistent measurement and data-driven action.
Ultimately, benchmarking is about creating a culture of continuous improvement. Whether you’re focused on financial performance, patient outcomes, or operational efficiency, consistent tracking and analysis can transform insights into impactful changes, driving your practice toward sustained success.
Read another article by Dr. Lane
Read more about practice metrics in ROB sister publication Independent Strong
Bradley Lane, OD, MBA, MEd, is a partner with Appalachian Eye Care in Princeton, West Virginia, his primary office, along with offices in Pearisburg, Virginia and Beckley, West Virginia. To contact him: bmlaneod@gmail.com
