Real Practices
Real Results.
Success Stories
Private Equity Group Total Transformation
Challenge:
With the slowdown in practice acquisition, Private equity groups face challenges in improving EBITDA within existing clinical service lines that require minimal strain on human resources or incremental outlay of capital. A core service line that consistently underperforms in EBITDA contribution is the optical dispensaries.
Approach:
Medical Eyeglass Center (MEC) proposed a co-sourced relationship to manage optical locations, focusing on aligning optical services with patient treatment plans. Key strategies included dedicated executive and operational oversight, collaborative integration, and monthly metric reviews.
Under MEC leadership, Phase I locations saw a significant improvement:
$975,000 increase in EBITDA contribution annually
$6.5M revenue generated in the first year
60% improvement in EBITDA
Increased shareholder value of >$10M if PE group had sold
Impact:
MEC’s strategic approach enhanced operational efficiency, financial performance, and overall profitability for the Private Equity Group, showcasing the value of transforming optical services. Additionally, the C Suite is provided data driven metrics for all locations and formal quarterly reviews. MEC and the client are now onboarding the Phase II locations.
Testimonials
“As a large management services organization supporting a portfolio of ophthalmology practices across much of the U.S., we seek strategic partners who can enhance performance without adding operational burden. Optical is not a core focus of ours, so partnering with MEC has allowed us to stay focused on our vision of delivering high quality medical and surgical ophthalmological care. MEC has provided meaningful improvements in optical revenue and efficiency while integrating seamlessly into our practices and allowing us to focus on our core competencies. Their understanding of both the clinical and business aspects of ophthalmology make them a truly valuable partner.”
John Friedel, President, Anterior & Multi-Specialty Division
Multi-Location Ophthalmic Practice Enhancement
Challenge:
A multi-location practice faced similar operational challenges such as time constraints for the CEO, inventory management issues, and staff retention struggles impacting eyeglass collections and profitability.
Approach:
MEC proposed a cosourced relationship to manage optical locations, introducing a qualified optical manager and opticians to improve patient flow, optimize profitability, and enhance service levels, while also providing data driven metrics that enabled the CEO to optimize time on other essential practice needs.
The Ophthalmic practice realized the following improvements:
43% increase in profitability
60% reduction in frame inventory recapitalization
40% decrease in patient eyewear delivery time
Comprehensive monthly analytics for the CEO
Impact:
MEC’s tailored approach enabled the practice to achieve higher profitability, streamline operations, improve patient delivery processes, and provide valuable analytics for informed decision-making.
Testimonial
“Our practice had managed its own optical—including an in-house lab—for over 30 years, so the decision to co-source with MEC was not taken lightly. But it turned out to be one of the best decisions I made during my tenure as CEO of our multi-location group. MEC brought a level of retail and operational expertise that elevated our optical beyond what we could achieve internally. Their team respected our legacy while helping us modernize and grow.”
Sondra Hoffman, CEO
Single Location Ophthalmic Practice
Challenge:
The optical business faced time constraints in developing a sustainable model. The optical manager had full discretion over ordering frames and supplies, hired an optician apprentice, and brought in part-time admin support. However, the turn time for patient eyewear exceeded 7 days.
Approach:
Medical Eyeglass Center proposed managing the optical location, hiring a dedicated optical manager, and transitioning the current manager to a full-time optician role. A strategy would be developed to align patient needs with profitability, improve patient flow, and review monthly metrics with the physician owner to adjust service levels and address improvements.
On an annualized basis this client realized:
Greater than 35% increase in profit contribution
Recapitalized more than 60% of their own frame inventory
Improvement in insurance payments
40% reduction in time patient delivery of eyewear is achieved
Impact:
With a new office manager, the physician supervised the optical manager while overseeing all aspects of the medical practice. With limited time to oversee the optical the practice was able to realize greater than 35% profit contribution on eyeglass collections of approximately $300K in revenue.
Testimonial
“Expanding into optical was a strategic growth opportunity for See Vision. We wanted a partner who could deliver a fully turnkey solution while meeting the high standards our patients expect. MEC took on every detail — staffing, systems, merchandising — with expertise and precision. Our partnership with MEC has been instrumental in the success of our expansion into optical.”
Myra Cherchio, CEO