Optometrist Salary Study 2010
Methodology 2 Key Findings 3 Profile of Practice 5 Salary/Revenue and Expectations13 Respondent Profile22 Appendix A: Current Income By Selected Segments29 Appendix B: Questionnaire35 Table of Contents 1
Subscribers of Optometric Management and/or Eyecare Business were surveyed via online questionnaire All respondents classified themselves as optometrists Field dates: March 24-31, 2010 All respondents who completed the survey were entered into a drawing for $200 in American Express gift checks Methodology 2
Subscribers cited a median gross income of $137,500. Most subscribers reported that their salaries increased or stayed the same in 2009 vs. 2008, and that momentum is expected to continue. About half of subscribers said their salary increased in 2009 compared to 2008, while about one in five cited a decline. Similarly, nearly half anticipate that their salary will increase compared to 2009, while four in ten think it will stay the same and about one in ten anticipate a decline. Key Findings 3 Current Gross Income Level of Subscribers Q.10: Which bracket below indicates your current gross income level? Base: Total respondents answering respective question (n=322)
Subscribers are highly optimistic regarding gross revenue of their practice More than half of subscribers anticipate that their practice’s gross revenues will increase compared to Subscribers who own the practice where they are employed are more optimistic than those who do not own the practice. In addition, subscribers who cite lower gross revenues (under $500,000) are most likely to say they anticipate revenues will increase The economy plays a role among subscribers who anticipate an increase in revenue as well as those who anticipate a decline. Those who anticipate an increase in their practice’s gross revenues attribute it primarily to an increase in patients as well as an economic rebound. Subscribers who anticipate a decline cite the economy and changes related to insurance coverage. Key Findings (Cont’d) 4 Total Revenue of Largest Practice Location Q.13: What is the approximate total revenue of your LARGEST practice location? Base: Total respondents answering respective question (n=258) Revenue of Largest Practice Location: Median: $875,000 Revenue of Largest Practice Location: Median: $875,000
Practice Profile 5
About half of subscribers are either in solo or group practice. Description of Practice % of Subscribers *=Less than.5% Q.1: Which of the following best describes your practice format? Base: Total respondents answering respective question (n=322) 6
Own 49% Do not own 51% Subscribers are equally split with regards to ownership of the practice where they are employed. Ownership of Practice % of Subscribers Q.2: Do you own the practice where you work? Base: Total respondents answering respective question (n=322) 7
Nearly half of respondents have been in practice for less than 10 years. Years in Practice % of Subscribers Q.3: How many years have you been in practice? Base: Total respondents answering respective question (n=321) Average = 14 years 8
Most subscribers (58%), practice out of just one location, while one-quarter practice out of two. Number of Practice Locations % of Subscribers Q.4: Out of how many locations do you practice? Base: Total respondents answering respective question (n=320) Average = 1.8 locations 9
More than two-thirds of respondents (70%) are responsible for overseeing employees where they work. More than four in ten oversee one to five employees. Number of Employees Personally Overseeing % of Subscribers Q.5: How many employees do you personally oversee? Base: Total respondents answering respective question (n=321) Average (among those who oversee 1+) = 6 employees 10
Virtually all respondents said they prescribe prescription medications to their patients. They are equally likely to say that they ever prescribe OTC medications. Types of Drugs Recommended/Prescribed % of Subscribers Q.6: Do you EVER prescribe prescription medications to your patients? Q.7: Do you EVER recommend OTC medications to your patients? Base: Total respondents answering respective question (n=318) OTC Medications Prescription Medications 99% 96% 11
Two-thirds of subscribers (68%) report that they personally see at least 40 patients over the course of a typical week and more than four in ten (41%) see more than 60. Patient Load of Largest Practice Location % of Subscribers Q.17: Still thinking of your LARGEST practice location, how many patients do you personally see in a typical week? Base: Total respondents answering respective question (n=321) 12
Salary/Revenue and Expectations 13
The majority of subscribers (71%) reported current gross income levels of less than $250,000. Current Gross Income Level % of Subscribers Q.10: Which bracket below indicates your current gross income level? Base: Total respondents answering respective question (n=322) Summary Less than $100,00033% $100,000-$249,99938% $250,000-$499,99915% $500,000 or more14% 14
Half of subscribers (48%) say their salary in 2009 increased compared to About one in five (21%) reported a decline. Change in Salary in 2009 vs % of Subscribers Q.11: Compared to 2008, your salary in 2009: Base: Total respondents answering respective question (n=314) Net Difference: Increased – Decreased= 27% Net Difference: Increased – Decreased= 27% 15
Similarly, nearly half of subscribers (47%) anticipate that their salary will increase compared to Only about one in ten (13%) expect their salary to decline. Anticipated Salary in 2010 vs % of Subscribers Q.12: Compared to 2009, do you expect your salary this year will: Base: Total respondents answering respective question (n=321) Net Difference: Increase – Decrease= 34% Net Difference: Increase – Decrease= 34% 16
Reported revenues of largest practice location vary considerably. Total Revenue of Largest Practice Location % of Subscribers Q.13: What is the approximate total revenue of your LARGEST practice location? Base: Total respondents answering respective question (n=258) Note: 20% of respondents were unable to answer. They are excluded from the base. Summary Under $500,00033% $500,000-$999,99926% $1 million or more41% 17
More than half of subscribers (54%) anticipate that their practice’s gross revenues will increase compared to One third (32%) expect revenues to stay the same while only about one in ten (14%) expect their revenues to decline. Anticipated Gross Revenues: 2010 vs % of Subscribers Q.14: Compared to 2009, I expect my practice’s gross revenues will: Base: Total respondents answering respective question (n=318) Net Difference: Increase – Decrease= 40% Net Difference: Increase – Decrease= 40% 18
Subscribers who anticipate an increase in their practice’s gross revenues this year attribute it primarily to an increase in patients and the economic rebound. On the other hand, subscribers who anticipate a decline cite the economy and changes/losses in insurance coverage Reasons for Anticipated Change in Gross Revenues: 2010 vs (unaided) Q.15: What factors, if any, will contribute to the anticipated increase or decrease in your practice’s gross revenues? Factors Will Contribute to Anticipated Increase (unaided) New patients/increasing patient base 13% Economic rebound11% New clinic/location/still in growth mode 10% More marketing4% Added a doctor4% More patients with insurance 3% Base: Anticipate an increase in practice’s gross revenue (n=171) NOTE: Only major mentions are shown Factors Will Contribute to Anticipated Decrease (unaided) Job losses/economy 52% Changes/losses in insurance coverage 23% Base: Anticipate a decrease in practice’s gross revenue (n=44) NOTE: Only major mentions are shown 19
Subscribers who own the practice where they are employed are more optimistic about anticipated gross revenues than subscribers who do not own the practice. Anticipated Gross Revenues in 2010 vs. 2009: By Ownership/Non Ownership of Practice Note: Letters indicate statistically significant differences at the 90% confidence level Q.14: Compared to 2009, I expect my practice’s gross revenues will: Own Practice Where Employed (A)Do Not Own Practice Where Employed (B) Net Difference: Increase – Decrease +48% B +31% 20
Subscribers who report the lowest gross revenue are more optimistic about their practice’s gross revenues than other subscribers. Anticipated Gross Revenues in 2010 vs. 2009: By Practice’s Gross Revenue Note: Letters indicate statistically significant differences at the 90% confidence level Q.14: Compared to 2009, I expect my practice’s gross revenues will: Under $500,000 (A)$500,000-$999,999 (B)$1 million or more (C) Net Difference: Increase – Decrease +36% B +20% +28% 21
Respondent Profile 22
Nearly three-quarters of subscribers say they currently receive medical insurance while about two-thirds receive paid vacation/holiday. Fringe Benefits Currently Receive % of Subscribers 1 Based on those who receive any paid vacation Q.19: Which of the following fringe benefits do you currently receive? Base: Total respondents answering respective question (n=217) Average 1 = 3.1 weeks 23
The leading inspiration for pursuing a career in optometry was a desire to help people improve vision. Biggest Inspiration for Pursuing a Career in Optometry % of Subscribers Q.22: What was your biggest inspiration for pursuing a career in optometry? Base: Total respondents answering respective question (n=316) 24
The majority of subscribers (70%) belong to any national or regional optometry association. The most commonly cited association was the AOA. Member of National or Regional Optometry Associations % of Subscribers Q.8: Do you belong to any national or regional optometry associations? Base: Total respondents answering respective question (n=321) 71% of those who belong to an association are members of the AOA 25
The vast majority of subscribers said they do not hold any additional degrees. Additional Degrees % of Subscribers Q.18: Do you hold any additional degrees? Base: Total respondents answering respective question (n=265) Additional Degrees Held BS46% MS21% MA18% BA14% JD11% MBA7% Base: Hold an additional degree (n=28) Note: Only major mentions are shown 26
Respondent Age and Gender % of Subscribers Q.20: Please indicate your age range: (n=322) Q.21: Please indicate your gender: (n=318) Base: Total respondents answering respective question AgeGender 27
Region of the Country % of Subscribers Q.9: In what region of the country do you practice? Base: Total respondents answering respective question (n=321) 28
Appendix A: Current Income By Selected Segments 29
Current Gross Income Level By Gender Q.10: Which bracket below indicates your current gross income level? 30 TotalMaleFemale %% Less than $100, $100,000-$249, $250,000-$499, $500,000 or more14214 Median ($)137,500175,000112,500
Current Gross Income Level By Region Q.10: Which bracket below indicates your current gross income level? 31 Total East North Central East South Central Middle AtlanticMountain New EnglandPacific South Atlantic West North Central West South Central %%%%% Less than $100, $100,000-$249, $250,000-$499, $500,000 or more Median ($)
Current Gross Income Level By Patient Load Q.10: Which bracket below indicates your current gross income level? 32 Patients Personally See in a Typical Week Total More than 60 %%% Less than $100, $100,000-$249, $250,000-$499, $500,000 or more Median ($)137,50087,500112, ,000
Current Gross Income Level By Practice Format Q.10: Which bracket below indicates your current gross income level? 33 Practice Format TotalSoloGroupOther %% Less than $100, $100,000-$249, $250,000-$499, $500,000 or more Median ($)137,500225,000275,000112,500
Current Gross Income Level By Revenue of Largest Practice Location Q.10: Which bracket below indicates your current gross income level? 34 Revenue of Largest Practice Location Total Under $500,000 $500,000- $999,999 1 million but less than 3 million3 million or more %%% Less than $100, $100,000-$249, $250,000-$499, $500,000 or more Median ($)137, ,000225,000112,500
Appendix B: Questionnaire 35
Click on the link below to view the questionnaire: 36