Messages and news from Cleinman Performance Partners
It’s that time of year when we reflect upon the past and think about the future. This past year has certainly been one for the record books. But in spite of our respective challenges, and, short of the horror of actually suffering from Covid or worse, we’re all better as a result of 2020. Yes, we’re better for it!
Remember the scene from the movie Private Benjamin where basic trainee Goldie Hawn is being forced to march in a circle in the rain. Her memorable line was…”I want to go to lunch…I want to be normal again.” Perhaps that line is a timely summary of where we currently are?
My journey began over 15 years ago. For this analyst, the proverbial “handwriting on the wall” was indelible. The signals were clear. The voice in my ear increased in resonance. The time was right to speak out. Of what am I speaking, you ask? I’m referring to the point at which I clearly understood that vision plans and private-practice optometry were on a collision course.
It’s been quite a year. In spite of a world-wide pandemic, natural disasters, social unrest, economic challenges and a political system that seems to have gone haywire, we’ve much for which to be thankful. If you’re listening to this message, if you’re breathing, you’re ahead of the game.
Remember Blockbuster? That chain of video rental stores that started with one location in 1985, had over 9,000 locations at its peak by 2004, only to vanish from the planet by 2014. That’s right, from seed to dust in less than 20 years! In that short period, Blockbuster moved an entire industry from a purchase and own business model to a rental model. Their inventory intensive business was then usurped by the streaming subscription model of Netflix; a business driven by technology that wasn’t even possible a decade earlier.
A couple of weeks ago, I shared with you some interesting data about your performance during the 2nd quarter of this year compared with 2019. Overall, on a per patient basis, our clients fared well during the darkest days of the Covid19 period. While, on average, you saw 25% fewer patients, your per patient revenue increased by 13%, mitigating fully 50% of the potential downturn. That’s outstanding!
It’s early November and next year is right around the corner. By now, you’re likely well on your way to finishing your 2021 plans and budget. You and your team have thought through what you’d like your practice to accomplish; your goals; your personal development objectives. Your managers have turned in their individual budgets and you now know what you expect to gross; and net. You’ve got a good idea of what you’ll invest in team development and a clear understanding of what positions you’ll have to fill.
Clearly, the second quarter of this year seemed like Optometry’s Armageddon. 2020 was supposed to be Optometry’s year. But with most of you closed down for at least ½ the quarter, and our industry’s events wiped clean off the calendar, stress flowed like a mountain stream. Our data shows that, on average, you saw 25% fewer patients in the 2nd quarter of this year vs. 2019! For most businesses, that would be the kiss of death. But you and your teams stepped up to the plate and made lemonade out of the proverbial lemon.