Results published in The Vision Council’s (TVC’s) latest Provider inSights semi-annual research study offer new findings into eye care providers’ (ECPs’) daily operations of clinical practice—and the industry as a whole.
Start with this inSights Research Program.
Initially launched in May 2022, TVC’s program delivers all-new reports developed from updated data sources and methodologies on the following:
- Consumer insights
- ECP insights
- Focused insights
- Industry data insights
- Market insights
Specifically: The program is intended to provide “timely data and analysis in an accessible, flexible format” via the use of a modern analytics platform.
- Download an overview or introductory webinar on it.
Now the Provider inSights report.
Conducted online from July 17-31, 2024, this survey was sent to U.S.-based opticians, optometrists, ophthalmologists, eyecare practice managers and owners, as well as other professionals involved in the daily operations of eye care practices.
Important to note: These participants were exclusive to only ECPs employed at clinical practices that offered eye exams and/or dispensed prescription eyewear.
And the total number of responses?
TVC reported a total of 235, with a margin of error of +/- 6% at a 95% confidence level.
What topics were covered?
Four key areas of focus:
- Revenue and staffing concerns
- Inflation
- Economic outlooks and staffing
- Telehealth adoption
Let’s talk revenue first.
Looking at H1 2024, ECPs reported a “substantial decline” in their perception of their practices’ overall performance—particularly in comparison to recent years.
Notables areas of decline included:
- Revenue
- Staff retention
- Patient acquisition
- Patient retention
Looking at revenue: Practices reporting an above-average revenue declined by 20% points when comparing H1 (January through June) 2024 (50%) to 2023 (30%).
- TVC’s input: This data reflects “a challenging economic environment and reduced consumer spending.”
How does staffing come into play?
Referred to as a “point of pain” for most eye care practices, staffing/hiring demonstrated no change overall from 2023.
Notably, just 17% of providers indicated “above-average performance” for this—a clear reflection of the difficulties associated with optical labor supply.
- Further: Most (83%) respondents reported not expecting any real improvements for H2 2024 in either revenue for staffing levels.
Now inflation.
Inflation was noted to have had a direct impact on practice operations for over 75% of respondents, with 71% reporting a major consequence of this being an increase in the wholesale price of eyewear products and practice supplies (64% of respondents).
As a result: This price hike has translated to an increase for consumers as well, leading patients to become more “price-sensitive, often opting for more affordable options or delaying purchase altogether,” TVC stated.
Give me more data on this.
By the numbers (for H1 2024):
- 50% of ECPs reported fewer product purchases by patients
- 12% increase in ECPs from 2023
- 39% reported patients being more price-sensitive about exam procedures
- 6% increase in ECPs from 2023
Moving on to the economy.
Over 50% of respondents reported that the U.S. economy is (in their opinion) performing worse so far in 2024 vs 2023.
Conversely: 53% also reported that they are “cautiously optimistic” about the economy potentially stabilizing or improving in H2 2024.
And in relation to staffing?
While staffing levels appeared to be “relatively stable” now vs 2023, 85% of ECPs reported their practices be either slightly understaffed or optimally staffed.
In terms of percentages above average/excellent, staffing retention was rated as:
- 51% for 2023 performance (on average)
- 40% for H1 2024
- 42% for H2 2024 (projected)
Let’s talk tech (ie: telehealth adoption).
ECP responses may be shocking:
- 78% reported not offering telehealth services at their practices
- 70% stipulated not viewing telehealth services as a priority for their practice
- 25% indicated their patients are unlikely to utilize telehealth services
- 18% reported their staff lacks sufficient telehealth training
However, for those respondents who did report offering such services:
- 15% reported providing telehealth where a patient joins remotely
- 3% reported having patients in a practice while the ECP joins remotely
Why such reluctance to this?
Despite the development of teleretinal screenings and tele-optometry platforms among medical companies recently, TVC noted that this ECP-based data “further illustrates the sector’s cautious approach to innovation as providers prioritize stabilizing their practices amid a challenging economic landscape.”
And the bigger picture of this data in its entirety?
With a plethora of economic factors and challenges facing ECPs, this latest insight into the current landscape and future of clinical practices indicates an overall uncertain outlook among clinicians heading into the second half of 2024.
Editor’s note: All data included in this story was extracted from TVC’s July 2024 Eyecare Provider Sentiment Tracker.