Page 45 - 2015 Key Metrics-Assessing ECP Practice Performance
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Expense Ratio Ranges
The following table provides the range of expense ratios for the 60% of MBA practices in the middle three quintiles of the overall
range within each expense category. This range in expense ratios for this group falls within one standard deviation of the overall
average for MBA practices. If your practice expense ratios are above or below these ranges for any category, you should investigate
further to determine the source of the variance.
Range of Expense Ratios by Category
Expense Category Range for Middle 60% of MBA practices
Cost Of Goods
23.9% 34.2%
Staff Salaries/Benefits
15.5% 24.2%
Occupancy
4.4% 8.9%
Equipment
0.2% 3.4%
Marketing
0.6% 2.3%
General Overhead
3.3% 10.3%
Interest
0.0% 1.4%
Repair/Maintenance
0.1% 0.9%
Insurance
0.3% 1.1%
Chair Cost per Complete Exam
Chair cost per exam is calculated by dividing total practice expenses less cost-of-goods and OD compensation/retained profit divided
by the number of complete exams performed. The median chair cost for independent ODs is $121.
Chair Cost per Complete Exam
Low Median High
$59 $86 $99 $107 $116 $121 $133 $144 $167 $181 $232
5th 15th 25th 35th 45th 50th 55th 65th 75th 85th 95th
percentile ranking
AVERAGE=$134
Key Metrics: Assessing Optometric Practice Performance 2015 43
