The Real Cost of Hiring an Optometrist

Mar 28, 2019
5 min read
880 views

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We've developed a slick Microsoft Excel calculator that will tell you the cost of hiring an optometrist, and your ROI on your new associate!

Calculate Optometrist Revenue πŸ’°

With a few quick inputs, the calculator will tell you the average revenue you can expect from your optometrist.

Calculate Cost of Vacancy πŸ’΅

Vacancy, also known as opportunity cost can really add up. Our calculator will help you calculate what it costs to not have an OD.

Calculate Cost of Onboarding πŸ’Έ

Meetings, interviews, and salaries of staff can certainly add up β€” but so will your increasing productivity as your new OD gets acquainted.

Calculate Cost of Employment πŸ€‘

This part of the calculator will spit you out the costs of health insurance premiums, PTO days, and federal taxes.

“Many experts say that each doctor is capable of accounting for $500,000 to $1,000,000 or more of practice gross income, but there’s so much more to this statement!”

Hiring an optometrist the wrong way can really affect your net margins this year! πŸ“‰

There are many things to consider when hiring an optometrist associate β€” but financial implications should be at the top of your list! Let's look at the cost of hiring an optometrist.

This calculator is going to show you some major financial factors to consider! Download it to find out!

The decision to hire an optometrist associate should not be taken lightly. There are many things to consider, from what this hire will cost you to how much additional revenue a new associate can bring to your practice.

Money Coming In πŸ’΅

In order to determine how much revenue your associate will generate, you will need to consider the following:

  • Average revenue per patient: What is your average per patient?
  • Average number of patients seen daily: How many patients will this associate see?
  • Days worked per week: How many days per week and how many hours per day will your associate be working?
  • Increase in ability to examine more patients: With an associate, you now have the ability to see more patients, at more times, and expand your outreach!

Money Going Out πŸ’Έ

  • Cost of vacancy: How long does it take to find that associate? Do you currently have a need that you can't meet? This is opportunity cost!
  • Cost of on boarding: Meetings, interviews, salaries of staff can certainly add up as you take time out of the schedule to evaluate those applying for your open position.
  • Time to reach full productivity: Will your associate have a full schedule from day one? Or will it take a few months before they're firing on all cylinders?
  • Cost of employment: What will you compensate this associate? Are you offering paid time off? What are tax implications for your business? What about health premiums?

These are just some of the things you need to consider when trying to understand what adding an optometrist associate to your practice will cost!

Don't worry! We created this calculator to make it easier to understand the costs to hire. Download it for free! πŸ’°

Obviously, adding an OD associate to your practice should result in a far greater increase in revenue than costs!

But making the wrong hire, or adding an associate to a practice that cannot support one, can create major problems. There are many other factors to consider when adding an associate optometrists to your practice.

You need to think about why you want to add an associate.

  • Are you looking to grow?
  • Are you looking to cut back your own hours?
  • Are you booked several weeks in advance and simply cannot manage the workload?
  • Are you looking to have the associate buy our your practice one day?
  • Is someone on a leave of absence or sabbatical?

Depending on the underlying reason to bring on an associate, the costs to hire can differ dramatically!

Take these two hiring scenarios for example...🧐

Scenario 1:

You decide to bring on an associate optometrist to your practice because you have an immediate need. Their schedule is going to be 100% FULLY booked from day one. That's the dream situation but it's unlikely to actually be a reality!

Assume:

  • Costs to hire are within average (don't worry, this is all in the calculator)
  • Average revenue per patient is $300, and a full schedule is 15 patients a day, 5 days a week

Scenario 2:

You decide to bring on an associate optometrist to your practice because you want to try and grow. Their schedule is going to be only 50% booked from Day 1 for 3 months until the schedule fills up completely. This is a three month ramp up to production β€” not too bad.

Assume:

  • Costs to hire are within average
  • Average revenue per patient is $300, and a full schedule is 15 patients a day, 5 days a week

So what's the difference between scenario 1 and scenario 2 in total costs? Well this might come as a shocker but it's roughly $350,000! 🀯 #mindblown

If you want to paint your own hiring picture and figure out what it would cost to add an associate to your practice, stop looking at our examples and averages and download the customizable calculator now! πŸ‘‡

This hiring costs calculator will be a huge help πŸ‘Œ

πŸ‘©β€βš•οΈοΈ Calculate Optometrist Revenue

  • Average Revenue Per Patient
  • Average Number of Patients Per Week
  • Average Days OD Works Per Week

🏬 Calculate Cost of Vacancy

  • Number of weeks without a doctor
  • Vacancy cost extrapolated per year
  • Vacancy cost comparison

πŸ‘¨β€πŸ« Calculate Cost of Onboarding

  • Decrease in productivity factor adjuster
  • Per month breakdown
  • % breakdown

πŸ’΅ Calculate Cost of Employment

  • PTO days extrapolated by salary
  • 7.65% social security & medicare tax
  • Health insurance premium calculator
  • Assumed profit margins
covalentcareers
About Matt Geller, OD

Dr. Matt Geller is an entrepreneur with a track record of developing successful online platforms to solve problems in the healthcare space. Matt is the co-founder and CEO of CovalentCareers and NewGradOptometry.


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