Dr. Cazares with his practice associate, Geesala Garvin, OD. Dr. Cazares said that adding an associate does patients a great service by expanding access to care and helps a practice to quickly become more profitable.
Profitably adding an associate to your practice.
By Ryan Cazares, OD
July 24, 2024
When you have more patients who need your services than you can see within a reasonable time frame, adding an associate is often a good idea.
Here’s how I turned the addition of an associate into a great win for our patients and our profitability.
Gauging When It’s Time
When I first opened my practice in my hometown of Scott, La., I knew there was a need for eyecare in the community, but I did not expect the immediate success I experienced. Surrounding communities were also under-served, so I was quickly very busy.
I was booked out a month by myself. I was encouraged to hire an associate by a consultant. I placed an ad with the Optometry Association of Louisiana to which I got a few bites; but I also had a doctor call me to tell me that it was much too soon to hire an associate. I did it anyway, and it was the best investment I ever made!
My first associate was Millie Dave, OD. She has since moved on to Dallas, Texas. My current associate, Geesala Garvin, OD, moved here from Austin, Texas. We graduated from the University of Houston College of Optometry together in 2011.
Financing the Addition of an Associate
An associate won’t be cheap, with the cost depending on where you practice in the country and your patient base. I pay my current associate a day rate plus health insurance and a percent of her production. I also reimburse her for continuing education.
She cost me about $150,000 in 2023, but she was responsible for $700,000 in revenue last year. Keep in mind that we are a heavy Medicaid and medical practice, so your practice will probably produce even higher revenue after hiring an associate.
I applied for a line of credit with my bank in case I needed more working capital to pay my new associate until reimbursements from insurance companies started coming in, but I ended up not having to tap into it at all. The return on this investment was almost immediate.
My break-even point was after month two. The insurance payments lagged slightly, but once the production from the associate caught up, we were on a quick road to doubling our revenue.
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If you are thinking about hiring an associate because you are booked out, do it yesterday!
As Good for Patients as for the Practice
There were a few benefits to our patients of adding an associate:
1.) I can specialize in what I am good at now: specialty contact lenses and medical eyecare. My associate does most of the family care.
2.) I have more time to work on the business and not just in it. Although the argument can be made that one fewer doctor day per week is detrimental to the potential revenue of the clinic, I believe our revenue ceiling is raised by the creative solutions I come up with during administrative days to help our practice grow. This day is super-valuable and gives me time to call consultants, meet with business partners, talk to equipment reps, look at our metrics and handle other business matters.
3.) New patients are the most profitable–they usually need something, like they are in need of a new pair of glasses, a supply of contact lenses, or something else, and you can bill new patients higher amounts. Being booked out several weeks is a turn-off for new patients calling in to make an appointment. Having more availability by adding an associate will keep these new patients under your roof and from seeking help elsewhere.
It’s Probably NOT too Soon to Add an Associate
I was scared that I was making this investment too soon in my young practice, but as long as you are booked up to two weeks or so, it is never too soon.
If you hire an associate and don’t quite have the numbers to fill up both of your schedules, amp up your marketing. You will get busy quickly! Never be afraid of making this investment.
Ryan Cazares, OD, is the owner of Scott Eye Care in Scott, La. To contact him: dr.cazares@scotteye.com
