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Evaluating Sublease Opportunities: Key Questions Every Optometrist Should Ask

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Selecting the right sublease location is a critical business decision that can significantly impact your income, patient mix, and long-term professional satisfaction. Each sublease opportunity is unique—some are turnkey operations, others are newly developed locations, and some come with an established patient base. Understanding what to evaluate and which questions to ask can help you make an informed and strategic decision.

When gathering information, it is important to speak with multiple stakeholders, including recruiters, regional managers, and store managers. Answers may vary depending on the source, so asking the same questions of each party—on separate occasions—can help verify accuracy. If a previous doctor practiced at the location, speaking directly with them can provide valuable insight and help avoid unexpected challenges.

Finally, remember that most lease terms are negotiable. A thorough evaluation upfront can protect your practice and position you for sustainable growth.

Operational Structure and Clinical Autonomy

  1. How are appointments scheduled, and what is the standard appointment length?
  2. What expectations exist regarding walk-in patients?
  3. Will you have autonomy to practice according to your preferred model, such as medical optometry, vision therapy, or contact lenses?
  4. What level of administrative and clinical support is provided by the staff?

Staff Experience and Responsibilities

  1. How long has the staff been employed at the location? Staff longevity often reflects stability, engagement, and operational efficiency.
  2. What responsibilities does the staff handle for your practice, including appointment scheduling, pre-testing, insurance verification, and authorization processing?

Financial Terms and Lease Considerations

  1. What is included in the rent (equipment, staffing, calibration, office supplies, etc.)?
  2. What is the current rent, and are increases expected in future years? Be aware that basing rent on a percentage of doctor income is illegal in some states.
  3. For newer or lower-volume locations, is there flexibility to adjust days or hours based on patient demand and seasonal trends?
  4. What restrictive covenant applies to the location, and what is the geographic radius? These terms are often negotiable and can significantly affect future practice options.
  5. What are the termination provisions for both parties, including required notice periods and lease duration?

Historical Performance and Patient Retention

  1. If another optometrist previously practiced at the location, why did they leave, and what was their weekly schedule?
  2. Were patient records retained at the location or transferred elsewhere? If patients followed the departing doctor, this may impact initial patient volume and serve as a negotiating point for rent or hours.
  3. What were the gross optical sales for the location over the past year? Doctor revenue often approximates 22% of optical sales, though this varies based on insurance mix and medical services offered.
  4. What percentage of sales come from outside prescriptions, indicating the strength of local marketing efforts?
  5. What proportion of patients are new, self-pay, or vision plan participants? A healthy, growing location typically sees 25–40% new patients.

Volume Expectations and Growth Potential

  1. Are patient volume reports available for the prior optometrist or projected volumes for new locations? A sustainable schedule typically supports 8–12 patients per day before expanding days or hours.
  2. For new locations, recognize that building a patient base often takes up to three years. Confirm whether your contract allows you to practice at additional locations during this period.
  3. Are you permitted to sell products within your office? Product sales can contribute up to 20% of gross revenue and may offer additional growth opportunities.

Competitive Landscape and Strategic Planning

  1. Does the lease include a split-lease provision allowing another doctor to practice on days you are not present? This arrangement should be reviewed carefully to ensure it aligns with your long-term goals.
  2. What is the competitive density in the area, including private practices within five miles and corporate opticals within ten miles? Understanding competitor schedules can help you strategically select hours and days that maximize patient access.
  3. Can the optical guarantee a minimum number of patients per week?

Final Thoughts

A sublease can be an excellent opportunity to build or expand your practice—but only when approached with a clear understanding of the operational, financial, and competitive factors involved. Asking the right questions and negotiating thoughtfully can help ensure that the opportunity aligns with your professional goals and sets the foundation for long-term success.

Double Standards in Optometry

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Optometry has evolved to include multiple career pathways: private practice, corporate optometry, industry, telemedicine, academic settings, and hybrid models. All play an important role in serving diverse patient populations. Yet, despite this diversity, a persistent double standard still exists in how corporate optometry is perceived within our industry.

Different Labels, Same Profession

Private practice has long been framed—starting as early as optometry school—as the gold standard for autonomy, prestige, and ethical care. Corporate optometry, by contrast, is often viewed through a more critical lens, frequently by ODs who have never worked in that setting and by industry professionals who are out of touch with how the landscape has evolved.

Over the years, corporate ODs have been labeled as non–decision-makers. How is this different from an employed OD in a private practice?

Both settings are staffed by licensed optometrists bound by the same regulatory requirements and commitment to patient care. The primary difference lies in the business model. Yet judgment often follows the practice setting rather than the quality of care delivered. Corporate optometry is frequently described as “refraction mills” or as providing “no medical care.” However, many private practices also offer limited medical services and rely heavily on refraction and optical sales. Many see patients every 15 minutes because they need to because of high expenses, modality doesn’t dictate this but rising costs, lower patient volume, decreasing reimbursements and increase in online sales.

Data show that only 4% of optometrists treat glaucoma in the U.S., and only 15% prescribe any therapeutic drops. Industry efforts to expand medical optometry have largely focused on private practitioners, yet adoption remains limited.

Pharmaceutical representatives often avoid corporate locations due to the assumption that corporate ODs do not practice medical optometry. In some cases, corporate opticals do restrict on-site access for reps, but this creates an opportunity for off-site collaboration and education rather than exclusion.

Similarly, it would be valuable to examine how many ODs prescribe contact lenses. Based on patient volume alone, corporate optometrists likely fit a high number of standard contact lenses, yet they are often excluded from conversations with contact lens companies unless corporate leadership initiates those relationships.

Scrutiny Without Parity

Corporate optometrists are regularly required to defend their career choices in ways private practitioners are not. They are questioned about patient volume, clinical decision-making, and loyalty to the profession. Meanwhile, private practices operating under production incentives, optical sales pressure, or external financing are rarely held to the same level of scrutiny.

Voice and Representation

Another double standard emerges in representation. Corporate optometry now accounts for nearly 50% of optometry jobs. Many ODs prefer employment over ownership, and some corporate organizations offer long-term career stability and growth.

Despite this, corporate optometry is often discussed on industry panels, in articles, and across social media, while corporate ODs themselves are underrepresented in leading those discussions. In one instance, an OD invited to speak at a statewide dinner was instructed by a sales representative not to disclose where they worked.

If nearly half of the profession works within corporate or private equity–backed settings, why do we see so few corporate ODs serving on advisory boards, committees, or shaping conversations about the future of the profession?

Selection for these roles should be based on experience, expertise, and clinical involvement—not influenced by outside or corporate interests.

Professional Identity and Credibility

Corporate optometry is often perceived as a temporary stop for ODs, despite many choosing it as a long-term or preferred career path. Leadership roles, committee appointments, and industry awards continue to favor private practice owners, reinforcing the idea that professional credibility is tied to ownership rather than contribution.

The Cost of the Double Standard

These perceptions have created division within the profession. Optometry cannot afford to undermine its own members.

There are numerous external forces already impacting the profession. While some corporate organizations support optometry better than others, it is unfair to group all corporate entities together—just as not all private practices deliver the same quality of care or uphold the same ethical standards.

Private practice has also contributed to industry challenges, including overvalued practices, excessive sales multiples, and the early adoption of vision plans that ultimately harmed reimbursement across the profession.

Disruptive technologies have emerged in response to patient demand and, in some cases, the profession’s inability to adapt to a changing landscape.

Moving Toward Equity

Addressing these double standards requires intentional change:

  • Equal representation of corporate and private ODs in leadership and industry conversations
  • Selection of ODs at decision-making tables based on merit and experience, not corporate influence

The future of optometry depends on unity, not hierarchy. Private practice and corporate optometry are parallel paths within the same profession. Patients will continue to choose the care model that best fits their needs. As optometrists, our shared mission remains the same: to care for patients.

To move forward, we need more authentic conversations, stronger advocacy, and a more inclusive professional community.

Playing Defense in Optical Sales

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Optical sales account for 60% or more of revenue in many private practices. Traditionally, we’ve focused on KPIs like capture rate, staff bonuses on upgrades, and maximizing insurance reimbursements. The higher the capture rate, the higher the compensation for optical staff. The logic has been simple: the higher the capture rate, the stronger the practice.

But here’s the problem: the strategies haven’t changed. We continue to hear the same tactics—discounting, price-matching, negotiating with labs, or private labeling. Meanwhile, the landscape has shifted. Online retailers have sold tens of millions of pairs of glasses so far and will continue to grow. Managed care increasingly directs patients to optical chains, and online retailers like Zenni sell glasses for $15—an impossible price point to compete with. Even corporate opticals are struggling to keep pace with the online market.

The future of optometry lies in expanding scope of practice, leveraging AI for administrative tasks, and moving beyond reliance on optical sales alone.

So, what happens when all the traditional “offense” strategies fail? After exhausting every effort to capture the sale, it’s time to think differently: play defense. Just as in sports, defense can win championships—why not use the same approach to strengthen our profession long-term?

Here’s how I play defense when patients are determined to buy glasses online—something many of them have done for years without issue:

  1. Contact Lenses for New Wearers – Introduce them as affordable, practical alternatives: (Ortho K, daily lenses, extended wear contact lens.
  2. Refractive Surgery – If the patient is a candidate, recommend LASIK as a glasses-free option.
  3. Cataract Surgery with Premium IOLs – For appropriate patients, discuss lens implants that reduce or eliminate the need for glasses.
  4. Presbyopia Drops (e.g.,Vizz) – Offer cutting-edge solutions for patients who want freedom from reading glasses.

Playing defense isn’t about giving up on optical—it’s about protecting the value of our profession. Stop fueling online retailers. Too many ODs avoid this approach out of fear it will hurt their dispensary if they fit cl or rx a presbyopia drop. But when a patient is already set on purchasing elsewhere, refusing to play defense only fuels online retailers and undermines the role of optometry. By expanding the conversation and offering alternatives, we provide real value, build trust, and protect our profession in the long run but not supporting our competitors.

Launch Your Cold Start Practice with Guidance From PECAA

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Ashley Szalkowski, OD, of Guild Eyewear Studio in East Aurora, NY, knew she wanted to open her own practice soon after graduating from New England College of Optometry in 2018. After school, she worked in an ophthalmology office for two years where she saw firsthand the common challenges and opportunities of practice management. Then COVID hit and presented her an opportunity to make a change.“I wanted to be different,” she recalls. “And rather than buying an established practice, I decided to open cold because I had a clear vision of how I wanted my office to look and feel, and what my brand should be. In building my own practice, I was able to create our identity very mindfully from the start.”

In 2020, Dr. Szalkowski met with several organizations offering cold start resources, however, immediately connected with Jenny Wiley, the long-time business advisor for Professional Eye Care Associates of America (PECAA)’s cold start program called PECAA Launch. Jenny was in lockstep with Dr. Szalkowski until opening her practice doors in 2022 and continues to offer her guidance on day-to-day tasks and long-term planning.

Jenny shares, “Like so many of the cold start practice owners I work with, I was impressed with the clear vision that Dr. Szalkowski had for her practice. It is a privilege to share her journey and provide guidance as she brings her vision to life and builds an amazing boutique practice.”

For doctors looking to open cold, PECAA Launch, a special membership from the independent doctor alliance PECAA, is designed to support doctors who are opening new practices, from concept to grand opening and beyond. PECAA Launch membership is free for the first year, with reduced membership fees for the second year, allowing young practices to benefit from PECAA’s multi-faceted resources at little to no cost. PECAA Launch helps cold start practice owners navigate their path to success and helps make their dream of launching their own business a reality. PECAA’s support doesn’t stop the day a practice opens its doors; membership includes valuable business resources and tools to help practices thrive at every stage.

Importantly, this is not a franchise program. PECAA provides guidance and resources, while keeping practice owners in the driver’s seat and ensuring their practice reflects their desired style and culture.

Key benefits of PECAA Launch membership include:

· Dedicated cold start business advisors

· Guidance on opening timeline, critical milestones and business strategy

· Business advisors in finance and strategy, operations, optical management, marketing, and billing and coding

· Exclusive vendor partnerships with special pricing on equipment, software, practice design, frames, lenses and more

· Reduced startup costs and delayed payment terms

· Extensive business support, including Human Resources, education and training

· Events to connect cold start practice owners with colleagues who can share their journey and support yours

“To have someone like Jenny who understands the cold start process and has helped open numerous practices over the years is invaluable,” said Dr. Szalkowski. “I called her many times when I was feeling overwhelmed! I also worked with PECAA’s Finance & Strategy Advisor to come up with sales projections and timelines. And just last week, I called PECAA’s Billing & Coding Advisor with a question. It’s amazing to have this full team of people to turn to for answers whenever you need them.”

Dr. Szalkowski recalls that each step of her cold start opening was a test of strength, but that PECAA’s support smoothed her journey. “The biggest challenges were the amount of information to know and things to get done. None of the steps was necessarily difficult, but it was just a lot,” she said. “PECAA patiently and clearly walked me through all of it. From mapping out and setting up the patient check-in and the patient journey to ordering frame boards, the PECAA team made these processes less intimidating.”

Now, open for two and a half years and with a steady patient flow, Dr. Szalkowski is focused on increasing patient volume through marketing and adding specialty services. She recently worked with PECAA’s Marketing Advisor on a strategy, including a mix of website updates, social media marketing, local print ads, and targeted website banner ads through the PECAA Ads Program.

With the increase in patient demand for dry eye services, Dr. Szalkowski is also building out a dry eye clinic utilizing the PECAA K-DISK, PECAA’s exclusive amniotic membrane, for which members receive discounted pricing. Additionally, she continues to emphasize her stylish retail space and the independent frame lines she offers, which patients have come to love for their unique selections.

Owning an independent eye care practice can be rewarding at any stage of an optometric professional’s career, offering the ability to have a greater impact on patient care, a better work-life balance and increased income. Maximize the entrepreneurial experience with PECAA Launch as the perfect partner. Click here to discover cold start resources from PECAA Launch to help you thrive in your private practice ownership journey.

Want more cold start content? Be sure to listen to the episode of the Reframing Eye Care podcast featuring PECAA Chief Experience Officer Dr. Justin Manning, OD, MPH, FAAO, who joins Maria Sampalis, OD, for insights on the independent optometry landscape and how PECAA is helping doctors realize their dreams of private practice ownership.

Fitting Specialty Lenses in Corporate Optometry

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Fitting specialty lenses, such as scleral lenses, in corporate optometry offices presents a unique set of challenges and opportunities. While these lenses offer immense value to patients with complex vision needs, the logistics of offering them in a corporate setting can raise questions about feasibility, profitability, and professional autonomy. Here’s a closer look at the factors influencing the fitting of specialty lenses in corporate optometry offices, along with insights from industry professionals.

Offering Specialty Lenses: The Corporate Setting Dilemma

Some optometrists working in corporate settings express concern about whether they can offer specialty lenses like sclerals to their patients. While the corporate structure may not facilitate insurance-based billing for specialty lenses, there is no barrier to offering them as a private-pay service.

The corporate environment may feel restrictive, but that the location of practice should not limit an optometrist’s ability to offer advanced care. Optometrists should be able to fit specialty lenses no matter where they practice. Many corporate optometrists have implemented sclerals in their practices and expressed hope that other sublease owners can share their experiences of success within corporate settings.

The Profitability of Specialty Lenses

One of the key advantages of offering scleral lenses is the potential profitability, particularly when they are offered on a self-pay basis. Specialty lenses like sclerals are often not fully covered by insurance, making a cash-pay option appealing for optometrists. Offering these services privately allows optometrists to charge what they are worth! Cash-pay basis approach allows optometrists to bypass insurance complications and ensure they are fairly compensated for the specialized care they provide.

Market Demand and Competition

When considering offering specialty lenses in a corporate setting, it is essential to understand the market demand. Optometrists need to assess whether there is a patient population in their area that would benefit from scleral lenses and whether there is competition from other practitioners fitting these lenses.

It is important to differentiate between patients who would benefit from scleral lenses and those who truly need them. Understanding the exact demand in the local market is critical to ensuring the success of a specialty lens service in any setting.

Navigating Corporate Logistics

One of the more practical concerns of offering specialty lenses in a corporate optometry office is navigating corporate policies and logistics. For instance, how do you plan to order sclerals in a a corporate setting? Do you have to set up your own account? What if you are not allowed to sell contacts at your sublease? Having it in your contract clearly laid out is very important.

For optometrists in corporate environments, it may be necessary to seek written approval from the corporation. Having a clear understanding of corporate policies around specialty lenses can help avoid complications down the road.

Overcoming Insurance Barriers

Insurance challenges are another common issue for optometrists offering specialty lenses in corporate settings.

This sentiment is shared by others who feel that corporate optometrists are sometimes limited by insurance structures.

Conclusion

Fitting specialty lenses in corporate optometry offices is not without its challenges, but it is entirely possible. With careful consideration of private-pay options, profitability, market demand, and corporate logistics, optometrists can successfully offer scleral lenses and other specialty lenses in a corporate setting. By charging fair prices and navigating corporate hurdles, optometrists can provide high-quality care to patients who need it most, regardless of the practice environment.

When Advocates Turn Silent: Addressing Criticism and Rebuilding Trust with ODs in Corporate Optometry

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In the Corporate Optometry Facebook group, many ODs share authentic insights about their experiences, serving as a genuine bridge between corporate optometry and the OD community. This authenticity stands in stark contrast to ODs who were instructed to join and post scripted messages—something the community easily recognizes as fake. When your most passionate advocates aren’t supported in return, it becomes clear that actions speak louder than words. When ODs who once advocated for how great the organization was now begin to criticize the company in online threads, it’s time to take a closer look at what’s happening. Often, these ODs will post anonymously in the group, highlighting issues and when it is not regional but national it’s a major red flag.

Why has this become such a common trend across corporate opticals? Why are ODs who go above and beyond always asked to do more, and it is never enough? Whereas the OD who does the minimum gets promoted or gets additional subleases? Why are loyal ODs who have built up their local offices often compensated less than a new graduate? Being overlooked can cause advocates to go silent.

Over the years, many ODs have voiced their frustration about being disrespected by store managers and regional managers, with their complaints often falling on deaf ears. ODs are being labeled as complainers and difficult to work with. Feedback is the only way to improve your OD turnover. ODs have expressed satisfaction in this setting when being respected and letting them do their job.

So, what can corporate opticals do to address these issues?

  1. Foster open communication pathways with leadership beyond local representatives.
  2. Implement an anonymous feedback channel for ODs to rate store managers and regional managers.
  3. Offer OD development training to engage and support ODs who want to grow within the organization.
  4. Create a culture of belonging and transparency that encourages ODs to feel invested in the organization.
  5. Lead by example: If leadership wants ODs to work Saturdays, they should also be available or present on those days. Trust is built through open communication and working side by side.
  6. Avoid labeling ODs based on store or regional manager narratives.
  7. Stop making excuses when it comes to rewarding ODs—there are always ways to show appreciation for both employed and sublease ODs.
  8. Train leadership on accountability and emotional intelligence.
  9. Stop recycling executives from one company to another—leadership styles that worked at one company may not be effective elsewhere. Outdated tactics and approaches often fall short.

Gearing Up for Insurance Week: Strategies for Success

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The end-of-year rush is here, and for many practices, Insurance Week marks the busiest and most chaotic time. Patients come in to use their benefits before they expire, creating an increase demand for appointments,and high demand for optical products. To make the most of week 52, here’s a breakdown of best practices for scheduling, operations, and maximizing efficiency.

1. Optimize Your Schedule

  • Extend Hours: Consider opening earlier or staying later to accommodate more patients. Starting an hour earlier and staying an hour later can accommodate at least 6 patients a day. Open your appointment book on Sunday as well.
  • Eliminate Bottlenecks: Reduce or postpone follow-up appointments to free up slots for comprehensive exams or high-priority visits. Start to recall your patients to come in earlier in the month. Be mindful of insurance benefits and ensure they can do so.
  • Weekend Coverage: Add weekend hours to cater to patients unable to come during the week. Sunday can be a great day to add additional coverage to accommodate patients and the day doesn’t have to be long either. It will open the rest of the days to accommodate walk ins.

2. Streamline Insurance Verification

  • Pre-Verify Benefits: Check insurance details for scheduled patients ahead of time to minimize delays.
  • Encourage Prep Work: Ask patients to provide their insurance information in advance to streamline the process.

3. Boost Efficiency

  • Train Staff for Speed and Accuracy: Make sure your team is well-versed in processing claims quickly and answering insurance-related questions.
  • Stock Up on Essentials: Ensure your trial lenses, year-supply contacts, and optical inventory are ready to meet increased demand. A fully stocked inventory prevents delays and improves patient satisfaction.
  • Lean on Technology: Use software or apps for scheduling, patient reminders, and insurance lookups to reduce manual work. Online appointment books have been a great way to attract new patients.

4. Marketing Strategies

  • Benefit Reminders: Start early! Sending reminders in November helps to spread out the rush.
  • Leverage Digital Channels: Use email campaigns, social media, and Google Ads to reach patients. Highlight the urgency of using their benefits before they expire.
  • Local Ads: If you’re in a competitive market, traditional advertising can still make a big impact. Google ads that target patients looking for same day appointments and ease of booking online.

5. Maximize Sales Opportunities

  • Promote Year-Supply Contact Purchases: Encourage patients to use their remaining benefits on full-year supplies of contact lenses, offering discounts or rebates when possible.
  • Upsell Multiple Pairs: Frame promotions or second-pair discounts can help patients make the most of their insurance.
  • Last-Minute Packages: Create bundled deals for patients who want to maximize their vision benefits and get the best value.

6. Prepare Mentally and Physically

The busy pace can be draining. Ensure your team has what they need to succeed:

  • Fuel the Team: Keep coffee flowing or stock up on snacks to keep moral high. Providing a paid lunch during that week will encourage more cooperation.
  • Encourage Breaks: Overworked staff can lead to mistakes and burnout. Make sure your team gets proper breaks, even during peak hours. If you can take off Christmas Eve as well, which is traditionally slow, it is recommended as a trade off to the busy week.

Final Takeaway

Insurance Week doesn’t have to be overwhelming. By extending hours, optimizing schedules, and preparing your team, you can meet patient demand while maximizing revenue. With the right strategies, you’ll not only survive but thrive during this critical period.

Handling the Issue of Staff Selling Contact Lenses Trials

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As a healthcare professional, the responsibility of protecting your license, practice, and reputation is important. If you’ve discovered that one of your staff has been selling trial contact lenses to patients—an action that is not only unethical but potentially illegal—it’s critical to address this issue immediately. Below is an outline of the steps you should take to handle this situation properly, protect yourself, and fire the employee.

Understanding the Gravity of the Situation

Trial contact lenses are typically provided free of charge by manufacturers with the clear stipulation that they are meant for diagnostic use only. These lenses are not to be sold, as doing so can lead to significant legal and ethical consequences. When an employee sells trial lenses and pockets the money, they are not only engaging in theft but may also be jeopardizing your professional license and practice.

Immediate Actions to Protect Yourself and Your Practice

  1. Investigate the Situation
    • Gather Information: Determine how long the employee has been selling trial lenses, how much money has been taken, and whether this is an isolated incident or a recurring issue. This will help you understand the scope of the situation.
    • Document Everything: Take detailed notes on when and how you discovered the misconduct, including any evidence of the transactions (e.g., receipts, security footage, or witness statements from patients and other staff).
  2. Consult Legal Counsel
    • Seek Professional Advice: Given the legal implications of selling trial lenses, it’s essential to consult with an attorney or a healthcare law expert. They can guide you on how to properly document and handle the termination of the employee while ensuring that you follow state and federal employment laws.
    • Evaluate Reporting Obligations: You may be required to report this misconduct to regulatory bodies such as your state optometry board or the company that provided the trial lenses
  3. Terminate the Employee Immediately
    • Clear Grounds for Termination: Based on the gathered information, you can proceed with terminating the office manager. This behavior is a serious violation of trust, professional ethics, and potentially the law.
    • Conduct the Termination in Private: Call the employee into your office, present the documented evidence of the misconduct, and inform them that they are being terminated for cause. Make it clear that their actions could have serious legal repercussions, and that you are taking immediate steps to protect your practice.
  5. Consider the Need for Additional Safeguards
    • Check for Other Misconduct: As one of your peers mentioned, employees engaged in one form of theft (such as selling trial lenses) may also be stealing in other ways (e.g., money, supplies, or even prescription products). Conduct an internal audit to ensure no other assets are missing.
    • Implement Stronger Office Policies: Review your practice’s protocols regarding inventory control, employee access to trial lenses, and handling of cash transactions. This incident highlights the need for clear rules and oversight on how office materials are dispensed.
  6. Protect Your License and Professional Standing
    • Report the Incident if Necessary: Depending on state laws and the severity of the situation, you may need to report this incident to your state optometry board or the company providing the lenses. Failing to report could result in professional penalties.
    • Address Patient Concerns: If any patients were affected, reach out to them to explain the situation and offer reassurance. Clarify that the individual responsible has been terminated, and any payments they made for trial lenses were unauthorized. Handling this aspect professionally will help maintain trust with your patient base.

Preventing Future Incidents

To avoid similar issues in the future, consider the following measures:

  • Enhanced Employee Training: Make sure all employees understand that selling trial lenses is strictly prohibited and that all financial transactions must go through the proper channels.
  • Regular Audits: Conduct periodic audits of your trial lens inventory and financial records to catch any discrepancies early.
  • Clear Office Policies: Establish and enforce policies that outline what is allowed regarding dispensing trial lenses and handling payments. Ensure employees understand that unethical behavior will not be tolerated.

Reference: Corporate Optometry Facebook

Analyzing Profitability in a 4-Day-a-Week Sublease.

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A few years ago a member of the Corporate Optometry Facebook group asked other ODs about the possibility of profitability seeing 6-7 patients a day. Subleasing an optometry practice for four days with a patient base of six to seven per day presents several key concerns. The practice, although not new, has experienced rapid turnover of doctors, with new practitioners staying only for about 1–2 years before moving on. This raises significant red flags regarding its profitability, stability, and potential for long-term success. Let’s break down the factors that affect the practice’s profitability based on community insights.

Patient Volume and Revenue

One of the most critical issues with this sublease opportunity is the low patient volume—averaging six to seven patients per day, primarily relying on vision plans. Lets break down the numbers, estimating that each patient brings in around $40 per exam (average vision plan reimbursement) With a daily patient count of 6.5 on average, that amounts to approximately $260 per day. If you add in two contact lens fittings at $50 each, the daily gross revenue rises to about $360. After factoring in expenses such as rent, utilities, and staff, the net profit for the day is projected to be $250-$300 at most. One OD claimed she was going to net 70k a year working 4 days, much less than working as an employed OD.

This low margin of profitability suggests that the practice, as it currently stands, is not an attractive business opportunity. If the practice were indeed profitable, there would likely not be such frequent doctor turnover.

Turnover of Doctors: A Red Flag

Frequent doctor turnover is another factor that calls into question the practice’s viability. If doctors are cycling through the practice every 1–2 years, it may indicate underlying issues such as unsatisfactory working conditions, lack of patient growth, or an inability to achieve profitability. High turnover often suggests that practitioners find the practice unsustainable in the long term. Unappealing financial conditions, could be a serious red flag for anyone considering the sublease.

Potential for Growth

While the current figures do not seem promising, there are some potential avenues for growth if the right changes are made. Reaching out to previous ODs and staff to understand what issues plagued the practice. This could provide valuable insights into whether the practice is salvageable or not. Giving more hours does not bring in more patients. Having the right hours for your patient demographics is essential. ODs should not lose money in a corporate sublease. ODs should see 10 patients a day to add more hours. Seeing 28 patients a week is a 2.5-3 day OD coverage.

It could be argued that if there is a motivated doctor in place, with a good support system and effective marketing, the business could grow. For example, expanding services beyond just vision plans to include Aetna, BCBS, or Medicare insurance options could increase revenue. Additionally, examining the population demographics and competition in the area would provide a clearer picture of whether there is potential to increase patient volume.

Strategic Considerations for Profitability

To improve the odds of profitability, several experts suggest limiting the number of sublease days at the start and scaling up only if necessary. Negotiating for two-day or three day coverage to start, with the potential to increase if patient numbers grow. Taking a cautious approach, working three days instead of four and supplementing income with another part-time job. Both suggest using the first year to gather data and re-evaluate the sublease terms at renewal.

Conclusion: Is It Worth the Investment?

Given the low patient volume, reliance on vision plans, and high doctor turnover, the sublease opportunity presents more risks than rewards in its current form. The financial return is minimal, and without significant changes to patient acquisition strategies, insurance plan offerings, and overall business operations, the practice may continue to struggle. While there may be potential to grow the practice with the right effort and strategic investments, the practice does not seem to be immediately profitable. A cautious, data-driven approach with limited commitment in terms of sublease days is recommended for anyone considering this opportunity.

Reducing Overhead Costs in Your Practice.

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Establishing a solid financial baseline is critical when launching an optometric practice to stay within budget. A standard optometric practice typically operates with an overhead ranging from 30% to 40%. These costs come from employee salaries, cost of goods, occupancy expenses, examination equipment, marketing, and doctor’s compensation. Whether you run a small or large practice, managing overhead is crucial for both success and long-term savings—especially as you plan for retirement.

Balancing rent, energy bills, salaries, and other office expenses can be a challenge, but with the right strategies, you can reduce overhead and improve profitability. Here are some ways to strategically cut costs without compromising quality.

1. Identify Financial Weaknesses and Create a Plan

To begin reducing costs, identify the areas where your practice is financially strained and where you can easily make adjustments. Start by reviewing and analyzing your optometry expenses on a monthly, weekly, and annual basis. This will help you spot trends and uncover opportunities to cut costs.

Since staffing, rent, lab fees, and supplies make up the bulk of overhead, focus on these key areas first. If managing these numbers seems overwhelming, consider consulting a financial advisor. They can help you assess your situation accurately and offer guidance on reducing expenses while planning for your retirement.

Once you’ve pinpointed the pain points, create a financial plan that includes realistic goals and regular reviews. Make small changes and stick to them, as gradual adjustments can yield significant savings over time.

2. Evaluate Staffing Costs

Staff salaries represent the largest overhead expense for most optometric practices. The competitive job market, paired with increasing salaries, can cause staffing costs to spiral out of control. It’s essential to ensure your team’s total salaries account for about 25% of revenue.

To retain good employees without breaking the bank, focus on building a positive work culture. Connecting with staff on both professional and personal levels, organizing team activities, and offering development opportunities can go a long way in keeping employees satisfied. Retaining staff is not only good for morale but also for controlling overhead costs.

3. Equipment Purchases

The cost of setting up an optometry practice can be high, especially when purchasing advanced equipment. To manage these expenses, if a piece of equipment costs over $5,000, review your budget with a financial advisor before making the purchase. They can help you determine whether it’s the right time for such an investment without straining your budget. Analyze your patient base and what diagnosis might fit in with certain equipment.

While cutting overhead is important, maintaining quality care for patients is essential. Therefore, any investment in equipment should balance financial prudence with the goal of enhancing patient experience.

4. Keep Supply Costs on a Tight Budget

Monitoring your supply expenses is key to reducing overall overhead. As a rule, supply costs should not exceed 6% of gross production. Review your practice’s past year of supply purchases to see where you can cut costs or find more cost-effective options.

Establishing strong relationships with reliable suppliers can help you find affordable materials without sacrificing quality. Regularly comparing vendors will ensure you’re getting the best deal available.

5. Manage Lab, Equipment, and Procedure Fees Wisely

To deliver high-quality patient care, your practice needs efficient labs and up-to-date equipment. However, lab expenses should be kept under 12% of total production. If lab costs exceed this threshold, consider using multiple labs or finding more cost-effective options without sacrificing quality.

Additionally, be mindful of insurance reimbursements when calculating procedure fees. If insurance reduces the cost by a significant percentage, look for other ways to offset the difference.

Final Thoughts

Implementing these small changes can add up to significant savings for your optometric practice. By identifying financial weak spots, creating a realistic plan, managing staffing costs, and keeping a close eye on supply and lab expenses, you can reduce overhead while maintaining the quality of care. Following these strategies will help secure the long-term success of your practice and allow you to save more for retirement.