Finances

Should You Charge More for Your Services?

Dr. Lopez in the front of his office, in the optical. Dr. Lopez outlines the many factors that go into deciding whether to raise your fees, and if so, by how much.

Dr. Lopez in the Griebenow Eyecare optical. Dr. Lopez outlines the many factors that go into deciding whether to raise your fees, and if so, by how much.

Increasing fees in optometry

By Chris Lopez, OD

Jan. 22, 2025

In the ever-changing world of eyecare, optometrists face a challenging question: should they charge more for their services?

With rising costs, inflation, shifts in consumer behavior and increased competition, this decision can significantly impact the success of a practice.

Furthermore, we must consider how fees for professional services and sales may influence patient care and access.

Let’s explore key factors that can help guide ODs in making this critical decision, while addressing the complexities of insurance reimbursement.

Before we dive in, it’s important to recognize that in the simplest form revenue in optometry practices (generally) comes from two buckets: professional services and materials.

Professional services include exams, special testing, procedures, contact lens fits (not sales) and more. Materials refer to goods that are sold in an office – glasses, contacts, supplements, etc.

The Case for Increasing Charges

Operation Expenses

Optometry practices face growing expenses. When is the last time that rent/lease rates decreased? Not to mention equipment/devices, warranties, utilities, staff salaries and other overhead costs that continue to rise.

Should we also discuss inflationary effects? Adjusting prices can help offset these increases, ensuring the practice remains financially sustainable. Business owners shouldn’t settle for declining income with stagnant fees.

Enhanced Value of Care

Many patients are willing to pay a premium for exceptional service. Providing comprehensive eye exams, state-of-the-art technology and a personalized patient experience can justify higher fees.

For instance, offering specialty dry eye procedures, myopia management programs or advanced lens solutions can position a practice as a premier location for patients to receive the best eyecare possible.

Specialist ODs know this concept well, as they are accustomed to patients traveling long distances to seek out their expertise. Add to this that premium offices benefit largely from word-of-mouth referrals from happy patients, and you can see the positives of enhancing the care provided in your office.

NOTE: While this article will not discuss how much ODs should charge, it is generally recognized that exam and service fees are often set equal to or higher than an office’s highest reimbursement from insurance payers.

Challenges of Raising Fees 

Patient Perception

In the history of healthcare, has there ever been a patient who was happy to pay more than they previously paid? Of course not. Therefore, it is important to standardize how office team members will discuss higher fees if patients bring it up – which they inevitably will do.

By and large, patients don’t understand the realm of medical insurance, vision discount plans and reimbursement. Furthermore, even if they could grasp the reality of stagnant reimbursement, they likely wouldn’t care much. What they do pay attention to, however, is their bills.

Make sure staff is educated and trained on navigating fee-related conversations with patients tactfully, truthfully and patiently.

Patient Accessibility

Higher prices could deter patients who are cost-sensitive, particularly those with poor or out-of-network insurance coverage. This might lead to a loss of long-term patients who prioritize affordability over premium care.

On the other hand, perhaps this scenario could be beneficial to a practice as it would essentially weed out patients who are not the best fit for the demographic the office is targeting.

Competition

In areas with more OD saturation, charging higher fees could drive patients toward competitors. It is crucial to assess the local market before implementing price changes.

At the same time, this strategy isn’t necessarily a bad thing if it would allow a practice to focus on serving patients who truly value the level of care being provided by the office.

NOTE: Many business gurus advocate that patients/clients/customers are willing to pay for services/goods which they deem valuable. By increasing charges, it would behoove practice owners to consider what changes could be made in their practices to enhance the value (or perceived value) experienced by patients that could justify higher fees.

The Biggest Sticking Point

The most significant consideration of raising fees is, and will continue to be, stagnant (or decreased) payments from medical insurance payers and vision discount plans.

A weighty chunk of optometry practice revenue comes from insurance reimbursements. The common counterpoint to increasing how much we charge for services is that even if a practice increases its fees, the reimbursement from insurance payers remains the same, leading to a limited impact on overall revenue.

This disconnect means that raised fees may only minimally influence insurance patients, but would negatively affect patients paying out-of-pocket who would have higher bills.

NOTE: Many practice owners look out for cash-pay patients by offering a “prompt pay” discount. Consult your legal team for guidance on navigating prompt pay/cash pay/self-pay discounts appropriately.

Price Increase Strategies

Gradual Adjustments

Rather than a sudden jump, consider incremental increases over time. This approach is less likely to alienate existing patients and allows them to better adjust to the changes.

Highlighting Value

Every team member in your office should be able to confidently communicate the benefits of your services to patients, emphasizing the quality of care, advanced technology and expertise offered. Allow patients to appreciate the value they receive.

Tiered Pricing Models

Introduce tiered options of offerings, allowing patients to choose between basic- and premium– care packages. In this way, you can cater to both cost-sensitive and value-seeking patients.

Be wary of highlighting a buffet of choices as too many options can often overwhelm patients, which harms sales.

Specialty Offerings

Specialized care, such as Ortho-K, vision therapy, or dry eye treatments, can attract patients willing to pay out-of-pocket for niche services. These options often fall outside of insurance coverage, providing an opportunity to avoid insurance headaches while improving the bottom line.

Additionally, there are plenty of incredible lens solutions that may greatly improve patients’ quality of life, such as computer bifocals, “boost” lenses, tints and sport-specific lenses. Who wouldn’t want to pay for the right solution to improve a visual complaint?

Ultimately, deciding whether to charge more for services requires a balance between the financial health of the practice and patient satisfaction.

Unfortunately, most optometrists are forced to navigate the maligned vision discount plan realm.

However, by utilizing the approaches discussed above, practice owners can make more informed decisions to ensure their practices remain competitive, profitable and patient-centered.

Christopher Lopez, ODChristopher Lopez, OD, is a practicing optometrist and Career Director at ODs on Finance. To contact him: christopher.lopez.2013@gmail.com

 

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