The Importance of Seeing an Independent Optometrist

Optometry is very similar to other practices of medicine in that private equity or investment companies are purchasing an increasing number of independent providers. A New York Times article noted that in some areas, a single private equity company may own 30% of the formerly private practices.

So, what is private equity? Private equity is a group of investors who buy companies to try and increase the profitability to their shareholders. When you have a small company making T-shirts, this may make sense. They buy the T-shirt company to make the operation more efficient and can squeeze more profit from the company. But, when this comes to your health care, this makes less sense.

A recent article in The American Journal of Medicine was titled, “Private Equity in Medicine: A Marriage Made in Hell,” which pretty much sums up the attitude of doctors towards private equity. They buy medical practices at a discount, but pay sellers more than a young, independent prospective doctor owner could afford, cut expenses, reduce overhead, invest as little as possible in the practice, then try to sell the practice for a profit.

The problem with this strategy in medicine, is that patient care is about much, much more than profit.

“Providing eye and medical care is the most sacred trust that a patient can place in me,” says optometrists and independent practice owner, Michele Sonsino, O.D. “While keeping the lights on is important, by far the most important factors in taking care of patients are compassion, competence, results, and trust. When you strive for the best for patients and truly care about someone’s situation, people notice that.”

So, while private equity practices are concentrating on maximizing profits, independent practices are concentrating on quality of care and building relationships.

And now, it is even more difficult to tell if a practice is independently owned and operated or owned by investors. Private equity practices many times do not change the sign on the door when they purchase an independent practice, for obvious reasons. They do not want you to know that they are there solely to make a profit and resell the practice. While they may look on the outside like a nice, independent shop, the doctor may be employed by and beholden to finance people and accountants.

So, what is the best way for you to determine the motivation of a new practice you are considering? “Ask questions,” says Dr. Sonsino. “Find out who owns the practice and make sure it is truly independent.”