Page 47 - 2015 Key Metrics-Assessing ECP Practice Performance
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Net Income % of Gross Revenue by Practice Size
The unweighted average net income % of gross revenue for all MBA practices is 30.7%. Larger practices enjoy somewhat higher net
returns, on average, but there is wide variation in profitability within each size group. Smaller practices achieved lower net profit
ratios, primarily because they did not enjoy the economies of scale in facilities and general overhead expenses.
Net Income % of Gross Revenue by Practice Size
60%
50%
% of Gross Revenue 40% 26.6% 29.6% 27.6% 30.7% 31.8% 30.3% 32.2% 32.0% 33.2% 35.0%
30%
20%
10% Total MBA Practices: 30.7%
<$493 $493- $642- $767 $883- $1,026- $1,200- $1,432- $1,695- $2,133+
$642 $767 $833 $1,026 $1,200 $1,432 $1,695 $2,133
Annual Gross Revenue ($000)
Annual Marketing Spending per Complete Exam
Independent ODs spend a median of $4.11 annually for marketing per complete exam they conduct. Marketing investment per exam
varies widely across practices, but in nearly all practices marketing spending per patient is less than 5% of revenue collected per patient.
Annual Marketing Spending per Complete Exam
Low Median High
$0.25 $1.18 $2.05 $2.62 $3.54 $4.11 $4.76 $5.94 $7.82 $10.91 $21.92
5th 15th 25th 35th 45th 50th 55th 65th 75th 85th 95th
percentile ranking
AVERAGE=$5.65
Key Metrics: Assessing Optometric Practice Performance 2015 45
