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Investors have their sights set on optometry, and for good reason. With an aging population and skyrocketing awareness of eye health, the industry has a clear vision for growth—expected to reach $215 billion globally by 2028.
Private capital is playing a significant role, helping practices expand and invest in advanced technologies. But this wave of investment is also transforming the way optometry operates, creating new challenges and reshaping the landscape.
For brokers, working closely with small, independent practices has never been more important. Building these partnerships is key to navigating the changes and thriving in this evolving market.
Consolidation in the Optometry Industry: What It Means for You
When private equity investors pick an optometry practice the goal is clear: generate a profit.
Currently, two factors are putting pressure on newly-acquired practices:
● High interest rates: The rising cost of capital means investors are under pressure to see quick returns.
● Online Expansion: With eyewear and contact lenses being purchased online, physical practices are facing declines in these revenue streams, forcing them to explore new ways to generate income.
Investors deal with these challenges by merging several practices into one. A larger organization represents fewer risks. It also gives them more control over prices and the vision plans accepted. This trend exists across the entire healthcare industry. In fact, mergers and acquisitions generated $13.3 billion in revenues during Q3 2024 alone.
What Does It Mean for Optometrists and Their Patients?
Turning several small practices into a single one means patients have fewer options.
Moreover, in isolated areas, care might be difficult to access. The pressure to make money for investors can also result in higher out-of-pocket costs.
Small independent optometry practices have an important role to play. By keeping prices low and vision care accessible, these practices can provide patients with an alternative.
However, competing against these larger organizations is hard. That’s where brokers can make a difference.
The Power of Optometry Practice and Broker Collaboration
Large optometry practices have a competitive edge by acquiring multiple practices, allowing them to offer a broader range of services.
However, small independent optometry practices can deliver the same diverse services with the right support and collaboration. Here’s how it can happen:
● A network where brokers and vision care providers work closely together.
● Great vision plans that make quality eye care accessible to everyone while ensuring high ROI for brokers.
● Ongoing communication with patients to discuss the importance of eye health care.
By offering vision care plans to the community, brokers help create an environment where patients have choices and costs remain affordable.
In turn, optometrists make vision care more accessible by accepting these plans. Moreover, accepting the right vision plans supports practice growth, independently from mergers and acquisitions.
At the community level, a strong optometry network can enhance overall health and make large health conglomerates less likely to convince optometry practice owners to sell.
Join the VCD Family
Join a network of professionals who share your values! Vision Care Direct of Oklahoma is a local, doctor-owned network that puts quality vision are first.
Our goal is to make vision care affordable. Perks include no lab requirements and no huge out-of-pocket costs for patients. Besides, patients get high reimbursements to make eye health more accessible.
Learn more about joining our network of brokers and optometrists!
Summary: Mergers and acquisitions are reshaping the optometry industry, creating challenges for small practices. In this changing landscape, brokers play a vital role by providing plans that ensure patients have access to affordable, high-quality care from independent optometrists.
