Newsletter


Q4-2018 Newsletter









Example Only 

# of Tests / MonthIncomeFixed CostVariable CostTotal CostNet
5$280$1,350$10$1,360-$1,080
10$560$1,350$20$1,370-$810
20$1,120$1,350$40$1,390-$270
30$1,680$1,350$60$1,410$270
40$2,240$1,350$80$1,430$810
50$2,800$1,350$100$1,450$1,350
60$3,360$1,350$120$1,470$1,890
80$4,480$1,350$160$1,510$2,970
100$5,600$1,350$200$1,550$4,050
120$6,720$1,350$240$1,590$5,130
150$8,400$1,350$300$1,650$6,750

This analysis is fairly straightforward, and shows that the “breakeven” point is between 20 and 30 tests per month.  Since there is an already-established panel of patients for whom this test is appropriate, the “ramp-up” time to achieve a breakeven level of patient volume will probably be relatively short.  The projected volumes can be estimated with a fairly high degree of accuracy using diagnosis categorization from the practice management computer system.

In this evaluation, it is assumed that the useful life of the equipment is longer than the time it will take to recover the acquisition investment; it is certainly longer than the life of the lease agreement or the loan repayment period required to acquire the equipment.

Let’s look at another commonly confronted decision: whether to hire an optometrist.  We can assume that the optometrist can fill several roles, including managing the optical shop; acting as a technician; seeing post-op patients; providing routine eye examinations; and treating patients with certain optical pathologies, either on their own, or along with the ophthalmologist.  We should assume that the optometrist will not bring many patients to the practice.  If that is not the case (OD will bring patients), the calculation will show an added dimension.







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