How using a BPO cuts staff costs and makes work easier.
According to industry research, staffing costs in optometry practices can account for 20% of operational expenses. This figure is from a comprehensive Management Business Academy (MBA) study involving over 1,600 established optometric practices. Alarmingly, some practices have seen these costs escalate past 30%.
For many practices, when profit margins decline or remain below industry standards, it often points to inflated costs, including staffing and other operational expenditures. Non-doctor labor costs ideally hover between 20 to 24% of a clinic’s revenues. But how can practices control these increasing staff costs without compromising the quality of patient experience? In a word, outsourcing.
We’re not suggesting a radical chop of your staff; that would just be counterproductive. After all, no one wants to jeopardize the patient experience. But consider this – improving operational efficiency and smartly outsourcing time-consuming administrative tasks can work wonders. We’ve helped practices increase revenue per patient by 33% and see a 12% uptick in patient exams.
The Rising Costs of In-House Operations
Managing the day-to-day operations of an optometry clinic is no small feat. Beyond the tangible expenses associated with advanced equipment and rent, clinics face many additional costs stemming from their human resources efforts. Recruiting quality staff members and then delivering their training and continuing development can be expensive. For a clinic, every hire translates into an investment.
Practices new to outsourcing can have a hard time telling the difference between virtual assistants, offshore teams, and business process outsourcing (BPO). This lack of clarity makes sense since BPOs are a relatively new trend in specialized sectors like optometry and ophthalmology. BPOs, however, have been around for decades. Industry stalwarts like Coca-Cola have used BPOs to power their complex supply chains. It has allowed them to grow their revenues by reducing operational costs and focusing on their core business. Let’s look closer at these options.
The Promise of Virtual Assistants (VAs)
The term “Virtual Assistant” often conjures images of individuals managing calendars or replying to emails. However, VAs can be so much more versatile in the optometry industry. These remote professionals can facilitate patient scheduling, provide phone support, or manage administrative tasks. Often, it means being able to hire a person with a college degree but for less than the cost of local staffers.
While not replacing the hands-on care a patient receives, VAs enhance the overall service experience. Their ability to handle various administrative chores efficiently ensures that the primary focus remains on patient care without being bogged down by administrative tasks. Training VAs, especially one from overseas, is an involved process. It’s one of the primary reasons people opt for a BPO instead.
The Power of Business Process Outsourcing (BPO)
Transitioning to VAs sounds appealing, but implementing it is another challenge altogether. Enter BPOs, specifically those who specialize in sectors like optometry. An optometry BPO streamlines the process of recruiting, training, and managing VAs. With a system already in place, clinics can increase revenues by decreasing staffing costs without the stress of starting from scratch.
The symbiotic relationship between optometric practices and BPOs extends beyond staffing solutions. They bridge the gap between revenue aspirations and operational efficiency. Insurance companies, for instance, require meticulous claims handling. By utilizing BPO services, practices can ensure timely and accurate processing, enhancing their revenue cycle. Moreover, the relationship between the BPO and its clients is a testament to the mutual growth and benefits they bring to the table.
Benefits of Partnering with a BPO
Cost Efficiency
Partnering with a BPO invariably results in significant savings compared with in-house operations. BPO staffers typically cost half or less than local staffers. Practices can reallocate the staff savings into enhanced patient care or invest in newer technologies.
Expertise in Hiring & Training
One of the predominant challenges for any optometrist or eye care clinic is continuously updating and training their staff, ensuring they’re abreast with the latest vision therapy and patient care. BPOs come equipped with a refined procedure for sourcing talent and a robust training infrastructure, effectively eliminating this hurdle for practices.
Performance Monitoring
BPOs are not merely about outsourcing tasks. They’re about ensuring those tasks are performed to the highest standards. Rigorous performance monitoring systems validate that the service provided aligns with the value expectations.
Improving Customer Service
At the heart of every optometry practice is its commitment to patient care. With BPOs shouldering administrative burdens, optometrists can focus on their primary objective—delivering unparalleled patient care and fostering an enhanced experience.
Using Metrics to Drive Incremental Progress
In any business, including the intricate world of optometry, the adage “what gets measured, gets managed” holds immense weight. Tracking performance metrics isn’t just about numbers; it’s about comprehending what those numbers signify. Every claim processed, eye exam conducted, and lens prescribed plays a role in the overall health of a clinic.
BPOs take this metric-driven approach a step further by offering advanced tools and periodic reports, enabling practices to monitor the performance of Virtual Assistants seamlessly. These tools shed light on the efficiency of outsourced tasks and provide a platform for feedback and iterative improvement.
However, having data is only half the battle won. The real challenge lies in acting upon these insights, deciphering the metrics, and aligning operations to continually uplift the service quality. For example, understanding the average time taken to settle payer disputes can provide insights into areas of improvement and training.
Overcoming Common Concerns
Let’s briefly address the most common concerns around outsourcing. For a more in-depth read, check out our article: Busting myths: addressing concerns about customer service outsourcing in eye care.
Data Security
The digitization of medical records, while convenient, has spurred concerns regarding data security. BPOs understand the sensitivity of this data. They adhere to stringent standards like HIPAA and invest heavily in technologies and protocols to ensure patient data remains private. From our comprehensive guide, you can learn more about how to be secure and compliant using BPO services for your eye care practice.
Scalability
As clinics evolve, so do their operational needs. BPOs offer the flexibility to scale services up or down based on a clinic’s changing demands. This adaptability ensures clinics remain agile, be it in handling routine tasks or navigating unforeseen challenges.
Integration with Current Systems
Automation is the linchpin of efficiency. However, for automation to be effective, the technologies employed by BPOs need to be compatible with a clinic’s existing systems, whether they’re in hospitals or independent practices. BPOs prioritize this integration, ensuring a seamless melding of technologies that augments an optometrist’s or physician’s capabilities.
Making the Transition
ODs typically have questions about how to transition to a BPO model. We put together an in-depth guide on how to make the transition to a BPO successful. We cover the phases, communication with staff, integrations, and more.
BPOs are the Clear Choice for Optometrists
ODs can’t control the rising costs of labor. But, they can take matters into their own hands by making their clinics more operationally efficient and outsourcing administrative tasks. A proactive approach doesn’t just save costs on staff, but it also paves the way for a better patient experience. Harnessing the power of BPOs is more than a business strategy; it’s a commitment to excellence. By reducing the administrative burden, optometrists can refocus on their primary mission: delivering top-quality eye care.
