BOOK
Business Aspects of Optometry E-Book
John G. Classe | Lawrence S. Thal | Roger D. Kamen | Ronald S. Rounds
(2004)
Additional Information
Book Details
Abstract
Count on this complete guide to setting up and managing an optometric practice! Business Aspects of Optometry covers everything related to the business side of a practice — such as selecting a location and staff, equipping the office, office administration and personnel management, marketing, options for a specialty practice, controlling costs, billing and reimbursement, risk management, and financial planning. To succeed in practice, this is the one resource you need!
- Unique! Expert authors are practice management educators who teach the course in optometry schools.
- A logical organization makes it easy to find practical information on managing your own practice or purchasing your own practice.
- Coverage of different types of ownership includes self-employment, individual proprietorships, partnerships, and corporations.
- Coverage of cost control issues compares the selection and use of an optical laboratory versus an in-house finishing lab.
- Risk management and insurance coverage provides an overview of personal, life, liability, and disability insurance.
- Coverage of financial planning and tax reporting discusses topics including IRAs, retirement plans, estate planning, and personal and business tax issues.
- Bulleted lists, tables, figures, and boxes help you locate valuable information quickly.
- Checklists provide a logical progression in completing tasks.
NEW chapters expand the book’s scope of coverage, and include these topics:
- Personal and professional goal setting
- Resumes and interviews
- Debt management
- Principles of practice transfer
- Ethics
- Quality assurance
- Specialty practice
- Vision rehabilitation
- Coding and billing
- Financial decision making
- Exit strategies
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Front Cover | Cover | ||
| Business Aspects of Optometry | i | ||
| Copyright Page | ii | ||
| Dedication | iii | ||
| Chapter Authors | iv | ||
| Preface | vi | ||
| Contents | vii | ||
| Introduction | 1 | ||
| Bibliography | 5 | ||
| Section 1: Preparing for your Professional Career | 7 | ||
| Chapter 1: State of the Profession | 9 | ||
| Number And Distribution Of Optometrists | 9 | ||
| Modes Of Practice | 10 | ||
| The Ophthalmic Market | 10 | ||
| Number Of Annual Eye Examinations | 12 | ||
| Services Offered By Optometrists | 12 | ||
| Income | 12 | ||
| Expenses Of Practice | 14 | ||
| Practice Patterns Of Beginning Practitioners | 15 | ||
| Conclusion | 17 | ||
| Acknowledgments | 17 | ||
| Bibliography | 17 | ||
| Chapter 2: Personal and Professional Goal Setting | 18 | ||
| Typical Phases In The Life Of An Optometrist | 18 | ||
| Goal Setting Is A Key To Success | 18 | ||
| Why Goal Setting Is Important To Career Management | 19 | ||
| Why People Do Not Set Goals | 19 | ||
| Definition Of A Goal | 20 | ||
| The Process Of Goal Setting | 21 | ||
| Conclusion | 24 | ||
| Bibliography | 24 | ||
| Appendix A: Professional Goals | 25 | ||
| Appendix B: Future Plans Exercise | 26 | ||
| Appendix C: Sample Outline Of Future Plans | 27 | ||
| Chapter 3: Ownership (Self-Employment) | 29 | ||
| Individual (Sole) Proprietorship | 30 | ||
| General Partnership | 31 | ||
| Corporations | 33 | ||
| Professional Associations And Corporations | 34 | ||
| Subchapter S Corporations | 37 | ||
| Limited Liability Companies | 38 | ||
| Expense Sharing | 39 | ||
| Conclusion | 40 | ||
| Acknowledgments | 40 | ||
| Bibliography | 41 | ||
| Chapter 4: Employment | 42 | ||
| Associateship | 43 | ||
| Residency | 48 | ||
| Veterans Affairs | 48 | ||
| Corporate Practice | 49 | ||
| Uniformed Services | 49 | ||
| Academia | 50 | ||
| Health Maintenance Organizations | 51 | ||
| Industry | 51 | ||
| Conclusion | 52 | ||
| Acknowledgments | 52 | ||
| Bibliography | 52 | ||
| Appendix 1: Provisions of the Associateship Agreement | 53 | ||
| Tax Considerations | 55 | ||
| Chapter 5: Resumes and Interviews | 56 | ||
| Cover Letters | 56 | ||
| Resumes | 56 | ||
| Interviews | 59 | ||
| Follow-up Letter | 62 | ||
| Conclusion | 63 | ||
| Bibliography | 63 | ||
| Chapter 6: Debt Management | 64 | ||
| Managing Debt While In Optometry School | 64 | ||
| Calculate The Costs Of An Optometric Education | 65 | ||
| Cash Flow Analysis And Need Calculations | 70 | ||
| Mistakes In Financial Planning During Optometry School | 71 | ||
| Getting Out of Debt | 72 | ||
| Develop A Good Credit Rating | 72 | ||
| Establishing Credit | 73 | ||
| Repairing Credit | 74 | ||
| Managing Debt After Graduation From Optometry School | 74 | ||
| Four Ways To Produce Income | 75 | ||
| How Much Money Is Needed To Live The Life Desired? | 76 | ||
| Managing Debt While Owning \nA Practice | 76 | ||
| Bibliography | 76 | ||
| Chapter 7: Principles of Negotiation | 77 | ||
| Fact-Finding | 77 | ||
| Planning And Preparation | 78 | ||
| Establishing An Initial Relationship With The Other Side | 78 | ||
| Initial Proposals | 78 | ||
| Exchange Of Information | 79 | ||
| Narrowing Of Differences | 79 | ||
| Closure And Implementation | 79 | ||
| Conclusion | 80 | ||
| Bibliography | 80 | ||
| Section 2: Purchasing a Practice | 81 | ||
| Chapter 8: Valuation and Purchase of an Eye Care Practice | 83 | ||
| Advantages Of Purchasing A Practice | 83 | ||
| Disadvantages Of Purchasing A Practice | 84 | ||
| Factors Affecting Purchase Feasibility | 84 | ||
| Offering A Proposal | 86 | ||
| Factors That Influence Practice Value | 86 | ||
| Factors That Decrease Practice Value | 89 | ||
| Practice Appraisal | 90 | ||
| Using Break-Even Analysis To Determine Whether A Price Is Reasonable | 91 | ||
| Restrictive Covenants | 92 | ||
| Consultants | 92 | ||
| Tax Consequences Of Purchasing A Practice | 93 | ||
| Acknowledgment | 93 | ||
| Bibliography | 94 | ||
| Chapter 9: Principles of Practice Transfer: Adding an Associate/Partner | 95 | ||
| Can The Practice Afford To Add An Associate? | 95 | ||
| Benefits of An Associate for The Senior Doctor | 96 | ||
| What Do Doctors Say About The Experience Of Adding An Associate? | 96 | ||
| Adding Services Or Specialty Practices To Afford An Associate | 97 | ||
| Gender Issues | 98 | ||
| Thoughts for Optometrists Seeking to Find an Associateship Position | 98 | ||
| Compensation Options for Associate Practice | 99 | ||
| Conclusion | 100 | ||
| Bibliography | 101 | ||
| Section 3: Developing a Business Plan: New Practice, Expansion, and Acquisition | 103 | ||
| Chapter 10: Deciding Where to Practice | 105 | ||
| Finding “Value” In A Location | 105 | ||
| Assessing The Past And Present Economic Pictures Of A Community | 106 | ||
| Determining The Optometric Practice Potential For An Area | 108 | ||
| Locating An Office | 109 | ||
| Putting It All Together | 110 | ||
| What Do You Want? | 110 | ||
| Which Is The Ideal Community? | 111 | ||
| Community Analysis | 112 | ||
| Profile Of Eye Care Professionals In The Community | 113 | ||
| Assessment Of Other Providers | 113 | ||
| Conclusion | 114 | ||
| Acknowledgments | 114 | ||
| Bibliography | 121 | ||
| Websites | 121 | ||
| Chapter 11: Elements of an Office Business Plan, Practice Financing, and Obtaining a Business Loan | 122 | ||
| The Business Plan | 122 | ||
| Practice Financing and Obtaining a Business Loan | 128 | ||
| Determining Financing Need | 129 | ||
| Financial Forecasting | 129 | ||
| Loan Categories | 130 | ||
| Determining Credit Worthiness | 130 | ||
| Evaluating A Loan Applicant | 131 | ||
| Obtaining A Business Loan | 131 | ||
| Fundamentals of Financing | 131 | ||
| Basic Provisions of a Bank Loan Agreement | 133 | ||
| Conclusion | 136 | ||
| Acknowledgments | 136 | ||
| Bibliography | 136 | ||
| Websites | 136 | ||
| Chapter 12: Understanding Premises Leases | 137 | ||
| Negotiating for Concessions | 137 | ||
| Selecting Competent Counsel | 138 | ||
| Location | 138 | ||
| Specific Contract Clauses | 138 | ||
| Conclusion | 142 | ||
| Acknowledgments | 142 | ||
| Bibliography | 142 | ||
| Website | 142 | ||
| Chapter 13: Office Design | 143 | ||
| Design of the Optometric Office | 144 | ||
| Conclusion | 151 | ||
| Acknowledgments | 151 | ||
| Bibliography | 151 | ||
| Websites | 152 | ||
| Chapter 14: Instrumentation and Equipment | 153 | ||
| Legal Considerations When Purchasing Instruments and Equipment | 153 | ||
| Financing the Purchase | 154 | ||
| Leasing Ophthalmic Equipment | 155 | ||
| Making the Appropriate Choices | 155 | ||
| Acknowledgments | 157 | ||
| Bibliography | 157 | ||
| Websites | 158 | ||
| Chapter 15: Controlling Cost of Goods | 159 | ||
| In-House Laboratories | 159 | ||
| Equipment Need And Costs | 160 | ||
| Laboratory Staff | 161 | ||
| Lens Inventory | 162 | ||
| Space Requirements | 163 | ||
| Liability Issues | 163 | ||
| Meeting With Optical Sales Representatives | 163 | ||
| Selecting And Using Optical Laboratories | 164 | ||
| Sources Of Spectacle Frames | 164 | ||
| Frame Quality, Service, And Price | 164 | ||
| Inventory Control Of Frames | 164 | ||
| Quality Control | 166 | ||
| Laboratory Service | 167 | ||
| Comparing Prices For Frames | 167 | ||
| Understanding Laboratory Practices | 167 | ||
| Placing Laboratory Orders | 167 | ||
| Conclusion | 168 | ||
| Acknowledgments | 168 | ||
| Bibliography | 168 | ||
| Websites | 168 | ||
| Section 4: Office Administration and Human Resource Issues | 169 | ||
| Chapter 16: Office Organization, Structure, and Systems | 171 | ||
| Structuring A Practice | 171 | ||
| Creating Systems | 172 | ||
| Managing Systems | 173 | ||
| Refining Systems | 173 | ||
| Choosing A Business Organization | 174 | ||
| Getting Started | 174 | ||
| Patient Management | 176 | ||
| Recordkeeping | 179 | ||
| Acknowledgments | 185 | ||
| Bibliography | 185 | ||
| Website | 185 | ||
| Chapter 17: Human Resources: Hiring and Training Office Staff | 186 | ||
| Planning | 186 | ||
| Organization | 188 | ||
| Developing an Office Manual for Employees | 190 | ||
| Designation of the Personnel Administrator | 191 | ||
| Job Analysis | 191 | ||
| Legal Considerations of The Selection of Staff Members | 192 | ||
| Selection Process | 192 | ||
| Offering Employment | 195 | ||
| Determining Compensation | 198 | ||
| Introducing New Staff To Patients | 198 | ||
| Training The Newly Hired Staff | 199 | ||
| Training of Staff | 199 | ||
| Acknowledgments | 203 | ||
| Bibliography | 203 | ||
| Websites | 203 | ||
| Appendix A: “Continuum of Empowerment” | 204 | ||
| Chapter 18: Human Resources: Managing and Motivating Office Staff | 205 | ||
| Managing Staff Members | 205 | ||
| Motivating Employees | 209 | ||
| Acknowledgments | 211 | ||
| Bibliography | 214 | ||
| Websites | 214 | ||
| Chapter 19: Human Resources: Evaluating, Managing, and Dismissing Office Staff | 215 | ||
| Evaluation Of Office Staff | 215 | ||
| Medical Leave For Employees | 217 | ||
| Employee Workplace Safety | 217 | ||
| Sexual Harassment | 217 | ||
| Discharge Of Staff | 218 | ||
| Unemployment Insurance | 218 | ||
| Disciplinary Action Against Employees | 219 | ||
| Retaliatory Discharge | 219 | ||
| Dismissing Employees | 219 | ||
| Exit Interviews | 221 | ||
| Acknowledgments | 221 | ||
| Bibliography | 221 | ||
| Websites | 221 | ||
| Chapter 20: Computer Business Systems and Internet Resources | 222 | ||
| Use of the Personal Computer | 222 | ||
| Specific Practice Management Systems | 223 | ||
| How to Get Started Computerizing an Office | 229 | ||
| Clinical Applications for Computers | 232 | ||
| Conclusion | 233 | ||
| Acknowledgments | 233 | ||
| Bibliography | 233 | ||
| Chapter 21: Recall Systems | 234 | ||
| Philosophy of Care | 234 | ||
| Conclusion | 238 | ||
| Acknowledgments | 238 | ||
| Bibliography | 238 | ||
| Websites | 238 | ||
| Section 5: Practice Administration | 239 | ||
| Chapter 22 Ethics in Optometric Practice | 241 | ||
| Balancing Professional And Business Interests | 243 | ||
| Ethics And The Law | 245 | ||
| Forms Of Health Care Organizations | 246 | ||
| Points To Consider During Ethical Analysis | 247 | ||
| Ethical Analysis: The Process | 248 | ||
| Conclusion | 249 | ||
| Acknowledgments | 249 | ||
| Bibliography | 249 | ||
| Chapter 23: Professional Liability Insurance and Risk Management | 251 | ||
| Types of Coverage | 251 | ||
| Extent of Coverage | 253 | ||
| Type of Policy | 253 | ||
| Malpractice Claim Reporting Requirements | 254 | ||
| Tax Issues | 254 | ||
| Risk Management | 254 | ||
| Proof of Malpractice | 255 | ||
| Standards of Care in Clinical Practice | 256 | ||
| Good Samaritan Statutes | 260 | ||
| Recordkeeping and Documentation | 260 | ||
| Acknowledgments | 261 | ||
| Bibliography | 261 | ||
| Websites | 261 | ||
| Chapter 24: Quality Assurance | 262 | ||
| Quality Assurance in the Optometric Practice | 262 | ||
| Documentation And Measurement of Quality | 263 | ||
| Patient Satisfaction | 267 | ||
| Utilization Management | 267 | ||
| Risk Management | 270 | ||
| Quality Assurance Plan | 270 | ||
| Conclusion | 271 | ||
| Bibliography | 271 | ||
| Chapter 25: Insurance | 272 | ||
| Life Insurance | 272 | ||
| Disability Insurance | 276 | ||
| Personal Insurance | 281 | ||
| Acknowledgments | 285 | ||
| Bibliography | 286 | ||
| Chapter 26: Patient Communication | 287 | ||
| A Standard Model of Care | 287 | ||
| Setting the Stage for Effective Communication | 288 | ||
| Communication in the Office | 289 | ||
| Communicating With Special Patient Populations | 292 | ||
| Conclusion | 293 | ||
| Acknowledgments | 293 | ||
| Bibliography | 293 | ||
| Chapter 27: Marketing: External and Internal | 295 | ||
| External Marketing | 295 | ||
| Components of a Marketing Plan | 297 | ||
| Advertising Effectiveness | 298 | ||
| Legal and Ethical Aspects \nof Advertising | 298 | ||
| Community Outreach | 299 | ||
| Internal Marketing | 300 | ||
| Conclusion | 302 | ||
| Acknowledgements | 302 | ||
| Bibliography | 302 | ||
| Section 6: Evaluation and Management of Specialty Services | 303 | ||
| Chapter 28: Ophthalmic Dispensing | 305 | ||
| Image Of The Dispensary | 305 | ||
| Frame Display Options | 306 | ||
| Frame Inventory Management | 307 | ||
| Ophthalmic Lens Design | 309 | ||
| Lifestyle Dispensing | 309 | ||
| Frame And Lens Pricing | 310 | ||
| Choosing Optical Laboratories | 310 | ||
| Nonprescription Sunglasses | 310 | ||
| Advertising | 311 | ||
| Eyewear Delivery | 311 | ||
| Eyeglass Warranties | 311 | ||
| Managing The Unhappy Patient | 311 | ||
| Staff And Practitioner Considerations | 312 | ||
| Conclusion | 312 | ||
| Acknowledgments | 312 | ||
| Bibliography | 312 | ||
| Chapter 29: Specialty Practice in Optometry | 313 | ||
| Pediatric Vision | 314 | ||
| Co-Management Of Refractive Surgery | 315 | ||
| Sports Vision | 316 | ||
| Hospital-Based Optometry | 317 | ||
| Prosthetics | 318 | ||
| Low Vision Services | 319 | ||
| Disease Management | 322 | ||
| Neuro-Optometric Rehabilitation | 323 | ||
| Conclusion | 324 | ||
| Acknowledgments | 324 | ||
| Bibliography | 324 | ||
| Chapter 30: Contact Lens Specialty Practice | 325 | ||
| Patient Communication and Promotion of Contact Lenses | 325 | ||
| Staff Utilization | 329 | ||
| Conclusion | 336 | ||
| Acknowledgments | 336 | ||
| Bibliography | 336 | ||
| Appendix 1: Fairness To Contact Lens Consumers Act | 337 | ||
| Appendix 2: Sample Forms | 340 | ||
| Chapter 31: Binocular Vision and Vision Therapy Specialty Practice | 343 | ||
| Benefits of Providing Vision Therapy Services | 343 | ||
| Models for Vision Therapy Services | 343 | ||
| Getting Started | 344 | ||
| Scope of Service | 344 | ||
| Doctor Vs. Therapist Provided Vision Therapy | 344 | ||
| Multiple Vs. One-To-One Therapy | 345 | ||
| Scheduling | 345 | ||
| Home Therapy | 345 | ||
| Fees | 345 | ||
| Insurance Participation | 345 | ||
| Equipment | 346 | ||
| Space Needs and Design | 346 | ||
| Forms and Record Keeping | 348 | ||
| Marketing Your Therapy Practice | 348 | ||
| Conclusion | 348 | ||
| Bibliography | 349 | ||
| Chapter 32: Interprofessional Relations | 350 | ||
| Developing Professional Referrals and Consultations | 350 | ||
| Why Don’t Practitioners Refer? | 351 | ||
| How to Encourage Referral Sources | 351 | ||
| Marketing to Targeted Professionals | 351 | ||
| Professional Communications | 355 | ||
| Developing and Cultivating Professional Relationships Through Common Interests | 355 | ||
| Non–Health Care Professionals | 356 | ||
| Acknowledgments | 356 | ||
| Bibliography | 356 | ||
| Section 7: Financial Aspects | 358 | ||
| Chapter 33: Fees, Credit, and Collections | 360 | ||
| Fees | 361 | ||
| Pricing of Ophthalmic Materials | 364 | ||
| Legal Issues Involving Ophthalmic Materials | 365 | ||
| Accounting System | 366 | ||
| Inspection and Evaluation \nof Financial Records | 366 | ||
| Credit | 367 | ||
| Payment for Services | 367 | ||
| Legal Regulation of Credit | 368 | ||
| Collections | 368 | ||
| Conclusion | 370 | ||
| Acknowledgments | 370 | ||
| Bibliography | 370 | ||
| Chapter 34: Managed Care, Third Party Reimbursement, and Audits | 371 | ||
| The Evolution of Managed Care | 371 | ||
| Health Care Reform | 371 | ||
| Understanding Medical Plans | 372 | ||
| Medicare and Medicaid | 372 | ||
| Health Maintenance Organizations | 378 | ||
| Preferred Provider Organizations | 379 | ||
| Understanding Vision Plans | 379 | ||
| Participation In Vision Plans | 379 | ||
| Major Vision Plans | 379 | ||
| Medical or Vision Insurance | 381 | ||
| Compensation Methods | 381 | ||
| Cost Sharing | 382 | ||
| Claim Form | 382 | ||
| Processing Procedures for Claims | 384 | ||
| Audits | 385 | ||
| Conclusion | 387 | ||
| Acknowledgments | 388 | ||
| Bibliography | 388 | ||
| Chapter 35: Coding and Billing | 389 | ||
| General Principles of Medical Record Documentation | 389 | ||
| Medicare Compliance Program | 397 | ||
| Submission Of Claims | 397 | ||
| Conclusion | 397 | ||
| Bibliography | 397 | ||
| Chapter 36: Analysis of Practice Economics and Growth | 398 | ||
| Basic Financial Statement Construction | 398 | ||
| Financial Statement Analysis | 403 | ||
| Ratio Analysis | 404 | ||
| Analysis Of Chair Cost | 404 | ||
| Productivity Statistics | 405 | ||
| Conclusion | 405 | ||
| Acknowledgments | 405 | ||
| Bibliography | 407 | ||
| Chapter 37: Financial and Estate Planning | 408 | ||
| Budgeting | 408 | ||
| Tax Planning | 408 | ||
| Developing a Personal Financial Plan | 409 | ||
| Developing a Budget | 409 | ||
| Estate Planning | 410 | ||
| Insurance Coverage | 413 | ||
| Investment Options | 414 | ||
| Asset Allocation and Investments | 417 | ||
| Developing an Investment Strategy | 417 | ||
| Use of Retirement Accounts | 418 | ||
| Transfer of Estate | 424 | ||
| Conclusion | 426 | ||
| Bibliography | 426 | ||
| Chapter 38: Financial Decision Making | 427 | ||
| Acquiring Wealth | 428 | ||
| Conclusion | 436 | ||
| Chapter 39: Taxes | 437 | ||
| Individual Income Tax | 437 | ||
| Filing Status | 438 | ||
| Gross Income | 438 | ||
| Deductions | 442 | ||
| The Standard Deduction | 442 | ||
| Itemized Deductions | 443 | ||
| Exemptions | 444 | ||
| Computing the Tax | 445 | ||
| Tax Credits | 445 | ||
| Social Security and Medicare Tax | 446 | ||
| Filing Requirements | 446 | ||
| Penalties | 447 | ||
| Audits | 447 | ||
| Business Taxes | 447 | ||
| Business Assets | 449 | ||
| Tax Basis for Business Property | 449 | ||
| Determining Net Profit From a Business | 450 | ||
| Income | 450 | ||
| Depreciation, Amortization, and Expensing Deductions | 456 | ||
| Payments to Independent Contractors | 458 | ||
| Tax Reporting | 461 | ||
| Calculating Income Taxes for Employees | 462 | ||
| Calculating Social Security and Medicare Taxes for Employees | 464 | ||
| Deposit and Payment of Taxes for Employees | 465 | ||
| Calculating and Paying Income Taxes for Self-Employed Individuals | 465 | ||
| Calculating and Paying Social Security/Medicare Taxes for Self-Employed Individuals | 467 | ||
| Unemployment Taxes | 469 | ||
| Conclusion | 470 | ||
| Bibliography | 472 | ||
| Chapter 40: Exit Strategies: Planning for Practice Transfer and Retirement | 473 | ||
| Exit Strategy Options | 473 | ||
| Steps to Preparing for a Practice Transfer | 475 | ||
| Differing Perceptions of Value | 478 | ||
| Planning for Retirement is Not Just About Money | 478 | ||
| Planning for the Mental and Emotional Impact of Retirement | 478 | ||
| Conclusion | 479 | ||
| Bibliography | 479 | ||
| A Message to Students | 480 | ||
| Index | 481 |