Released today, a new study found that soft contact lens patients generated significantly higher annual profits for eye care practices than comparable patients who wear only eyeglasses.
The analysis, commissioned by the Contact Lens Institute (CLI) as part of its See Tomorrow initiative, was conducted by Philip Morgan, BSc, PhD, MCOptom, FAAO, professor of optometry and head of optometry at The University of Manchester UK, Lyndon Jones, BSc, PhD, FCOptom, FAAO, professor, School of Optometry & Vision Science, University of Waterloo, Canada, and Professors Ash Morgan and John Whitehead at Appalachian State University. The researchers found that annual profitability for contact lens patients ranged from 29% to 86% higher than for glasses-only patients, depending on the type of vision correction prescribed.
According to the study, average annual profit per patient was $436 for spherical soft contact lens wearers, $453 for toric lens wearers, and $485 for multifocal contact lens wearers. By comparison, single-vision eyeglass patients generated an average annual profit of $244, while progressive eyeglass patients averaged $376.
Practice Data Analysis
The findings are based on four years of anonymized data submitted by 20 U.S. eye care practices. Each practice contributed data for 30 patients along with data such as including professional fees, chair time, staff compensation, and secondary revenue sources.
“It’s clear that contact lens customers can generate greater average annual profit, even with higher service and product costs,” says Dr. Morgan. “Our findings suggest that recurring purchases, greater examination frequency, and opportunities for ancillary spending may make contact lens wearers particularly attractive from a customer lifetime value perspective.”
Challenging Assumptions
CLI says the research is the first U.S. analysis of contact lens profitability. It follows earlier See Tomorrow research from the organization, which found that more than half of eye care practices either do not measure the business impact of contact lens prescribing or underestimate its profitability compared to glasses-only patients’ contributions, says Stan Rogaski, CLI executive director.
“The new data squarely challenges profitability myths that can creep into conversation despite a lack of evidence,” he says.
The complete findings will be published later this year as part of a broader See Tomorrow report.