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Thread: Dispensing Fees in Ontario

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    Excalibur
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    Dispensing Fees in Ontario

    do Ontario opticians feel threatened by Ontario optometrists' dispensing fee model?

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    bilateral peripheral scotoma LandLord's Avatar
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    Actually, no. I think it's the other way around. The good OD's I know tell me they hate the dispensing fee and wish they could go with a markup. Patients sometimes gets confused and think the dispensing fee makes the doctors office more expensive. Do you disagree with them?

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    I feel it is a colluded, unethical model imposed on the ODs. It was put in place to destroy the Optician trade, which in Ontario, has made movement on.

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    Excalibur
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    Quote Originally Posted by For-Life View Post
    I feel it is a colluded, unethical model imposed on the ODs. It was put in place to destroy the Optician trade, which in Ontario, has made movement on.
    What proof do you have that it was "put in place to destroy the optician trade"?

    The dispensing fee model is consistent with other professions that provide a material and good for the patient such as pharmacies and dentists. Are you suggesting that the dispensing fee model be abandoned by pharmacies too, thereby escalating the cost of pharmaceuticals? Ontario Optometrists, as licensed professionals, are merely being consistent with other professional providers that dispense.

  5. #5
    Excalibur
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    Quote Originally Posted by LandLord View Post
    Actually, no. I think it's the other way around. The good OD's I know tell me they hate the dispensing fee and wish they could go with a markup. Patients sometimes gets confused and think the dispensing fee makes the doctors office more expensive. Do you disagree with them?
    Patients are shown the math. When we go over the cost of our frame and lenses and add-ons such as A/R and compare them to an average mark-up in a retailer, they are shocked to see how much value we provide them.

    I am not allowed to advertise my fees to anyone but my patients. Opticians and retailers can advertise in the media as much their pocketbook will allow. And they most certainly exercise that option!

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    Quote Originally Posted by Excalibur View Post
    What proof do you have that it was "put in place to destroy the optician trade"?

    The dispensing fee model is consistent with other professions that provide a material and good for the patient such as pharmacies and dentists. Are you suggesting that the dispensing fee model be abandoned by pharmacies too, thereby escalating the cost of pharmaceuticals? Ontario Optometrists, as licensed professionals, are merely being consistent with other professional providers that dispense.
    It is based on the pharmaceutical industry. Thing is, pharmacists are not competing against another group.

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    bilateral peripheral scotoma LandLord's Avatar
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    Quote Originally Posted by Excalibur View Post
    Patients are shown the math. When we go over the cost of our frame and lenses and add-ons such as A/R and compare them to an average mark-up in a retailer, they are shocked to see how much value we provide them.

    I am not allowed to advertise my fees to anyone but my patients. Opticians and retailers can advertise in the media as much their pocketbook will allow. And they most certainly exercise that option!
    You said that in another thread and it doesn't properly respond to my post.

  8. #8
    Excalibur
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    Quote Originally Posted by LandLord View Post
    You said that in another thread and it doesn't properly respond to my post.
    No problem. You go to a dispensing fee model and stop advertising 'lowest prices', '2 for 1' and all that sort of stuff and we will all be on an 'even playing field'.

    It looks like we have a profession (optometry) being told by a trade (opticians) that the optometrists are undercutting on pricing. How ironic that a trade is doing less well on pricing than a profession.

    Folks... the dispensing fee model has been around in Ontario for over 30 years. You'd think that by now you would have adjusted your business to it and got over it. Pretty soon optometrists in Ontario will be able to choose whether they wish to charge a dispensing fee or markup. Then, we'll start hearing complaints from opticians that somehow that is unfair too. We can't win!

    Stop complaining and being paranoid about optometrists trying to destroy your practices. It's just not happening. Look at your own trade/vocation from within -- educate and regulate yourselves better, stop acting less like vendors and more like health care providers, etc and stop criticizing optometry for your shortfalls.

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    Quote Originally Posted by Excalibur View Post
    No problem. You go to a dispensing fee model and stop advertising 'lowest prices', '2 for 1' and all that sort of stuff and we will all be on an 'even playing field'.

    It looks like we have a profession (optometry) being told by a trade (opticians) that the optometrists are undercutting on pricing. How ironic that a trade is doing less well on pricing than a profession.

    Folks... the dispensing fee model has been around in Ontario for over 30 years. You'd think that by now you would have adjusted your business to it and got over it. Pretty soon optometrists in Ontario will be able to choose whether they wish to charge a dispensing fee or markup. Then, we'll start hearing complaints from opticians that somehow that is unfair too. We can't win!

    Stop complaining and being paranoid about optometrists trying to destroy your practices. It's just not happening. Look at your own trade/vocation from within -- educate and regulate yourselves better, stop acting less like vendors and more like health care providers, etc and stop criticizing optometry for your shortfalls.
    It has been around for 30 years, but it has been in practice for just over 10. Most ODs did not dispense.

    Of course the profession is undercutting the trade. Like I said, when ODs work with a law that forces them to have prices that Opticians cannot offer then it makes sense.

  10. #10
    Excalibur
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    Quote Originally Posted by For-Life View Post
    It has been around for 30 years, but it has been in practice for just over 10. Most ODs did not dispense.

    Of course the profession is undercutting the trade. Like I said, when ODs work with a law that forces them to have prices that Opticians cannot offer then it makes sense.
    Nonsense.

    Most ODs dispensed years ago. Opticians feel more threatened by optometric dispensaries because they have modernized their facilities and made the patient buying experience easier and more friendly too.

  11. #11
    Excalibur
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    Quote Originally Posted by For-Life View Post
    It has been around for 30 years, but it has been in practice for just over 10. Most ODs did not dispense.

    Of course the profession is undercutting the trade. Like I said, when ODs work with a law that forces them to have prices that Opticians cannot offer then it makes sense.
    So... you'll be happier if we RAISE our prices so that you are more competitive? interesting but foolhardy.

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    Quote Originally Posted by Excalibur View Post
    So... you'll be happier if we RAISE our prices so that you are more competitive? interesting but foolhardy.
    No, you ignored what I said to you before. I would be happier if the restrictions were not in place and you guys were allowed to have competitive pricing. That means you can continue to do cost plus if you want, but are not forced to.

    I think ODs would enjoy it more. I think it is better for patients, because ODs will see more value in offering better products (only one OD here actually will push better PALS and AR. The others are too afraid to).

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    Quote Originally Posted by Excalibur View Post
    Nonsense.

    Most ODs dispensed years ago. Opticians feel more threatened by optometric dispensaries because they have modernized their facilities and made the patient buying experience easier and more friendly too.
    Imperial kept them out of the dispensing market. Also, we are fair more modernized than any OD in town. I have no problems with ODs dispensing. While I think it breaks traditional ethics, I understand that it is evolution. I have a problem with a colluding pricing scheme.

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    bilateral peripheral scotoma LandLord's Avatar
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    Actually, dispensing opticians are only afraid of dispensing optometrists when both compete one to one. If we have a gun fight and both of us are skilled marksmen -- but the only difference is that you have to get your bullets from me -- then I will win every time.

    The sole, dispensing optician is a dying breed. Today, as in my practice, we have side-by-sides. My business model is much more powerful than yours because I can undercut you every time and I do. My store does almost $1M/year, not including the OD exam fees, which he keeps. There are OD's who would jump at the chance to work "next door" to me because they would make more money. Maybe some day I'll open a store in Toronto and you can work there. You'll likely increase your income and cut your headaches in half.

  15. #15
    Excalibur
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    Quote Originally Posted by LandLord View Post
    Actually, dispensing opticians are only afraid of dispensing optometrists when both compete one to one. If we have a gun fight and both of us are skilled marksmen -- but the only difference is that you have to get your bullets from me -- then I will win every time.

    The sole, dispensing optician is a dying breed. Today, as in my practice, we have side-by-sides. My business model is much more powerful than yours because I can undercut you every time and I do. My store does almost $1M/year, not including the OD exam fees, which he keeps. There are OD's who would jump at the chance to work "next door" to me because they would make more money. Maybe some day I'll open a store in Toronto and you can work there. You'll likely increase your income and cut your headaches in half.
    Sorry to disappoint you, but my practice grosses over 1M/yr -- no need to offer me 'a job'. Thanks for the generosity. The money, however, is not necessarily the motivating factor. The motivating factor to stay in private practice is the element of professionalism and being able to provide full-scope, progressive care.. which I do. I have tremendous respect from my large family doctor network as well as my ophthalmology colleagues.

    You state that "my business model is much more powerful than yours because I can undercut you every time and I do". If that's the case, share your wonderful secrets with your optician colleagues who are SO fearful of private optometrists who dispense under a dispensing fee model. Poppycock!

  16. #16
    Excalibur
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    Quote Originally Posted by For-Life View Post
    Imperial kept them out of the dispensing market. Also, we are fair more modernized than any OD in town. I have no problems with ODs dispensing. While I think it breaks traditional ethics, I understand that it is evolution. I have a problem with a colluding pricing scheme.
    There is no collusion. Period.

    Optometrists can charge any dispensing fee they want. If they wish to charge above the dispensing fee rate, they have to advise the patient of that.

  17. #17
    Excalibur
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    Quote Originally Posted by For-Life View Post
    No, you ignored what I said to you before. I would be happier if the restrictions were not in place and you guys were allowed to have competitive pricing. That means you can continue to do cost plus if you want, but are not forced to.

    I think ODs would enjoy it more. I think it is better for patients, because ODs will see more value in offering better products (only one OD here actually will push better PALS and AR. The others are too afraid to).
    Most of our lenses are premium-branded including free-form progressives and the newest coatings.

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    Quote Originally Posted by Excalibur View Post
    Most of our lenses are premium-branded including free-form progressives and the newest coatings.
    That is why I specified not all ODs do it.

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    Ive been lurking on the forums for a while and this thread prompted me to register.

    The theory that ODs are trying to run opticians out of business with the cost plus dispensing fee approach is rather far fetched.

    If anything,I would base this concept of pricing glasses as stupidity on the part of optometrists.

    This backwards thinking was one of the reasons that I left Ontario.

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    Master OptiBoarder
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    Welcome aboard, and thanks for the welcome opinion.

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    Some interesting points made on both sides. The need for opticians to partner with OD's is long overdue. A professional business partnership would more than satisfy each other's personal goals and financial requirements. It is also a convenient way to share ideas, knowledge, expertise, overhead costs etc., while serving the public's best interests at hand.
    :cheers:

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    Excalibur
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    Quote Originally Posted by eyemanflying View Post
    Some interesting points made on both sides. The need for opticians to partner with OD's is long overdue. A professional business partnership would more than satisfy each other's personal goals and financial requirements. It is also a convenient way to share ideas, knowledge, expertise, overhead costs etc., while serving the public's best interests at hand.
    :cheers:
    I believe that there should be better working relationships between both groups. There should be limitations, however, on these relationships so that we can optimize patient care and provide professional service based on fudiciary responsibilities to these patients.

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    There are too many limitations now for opticians and not enough for OD's. You can't tell me that an ophthalmic/optometric assistant is more knowledgeable and experienced than a licenced optician. One thing for sure is the amount of remakes would drop drastically. The OD's function wouldn't change and the addition of an optician under the same roof would definitely optimize patient/client care. I'm not suggesting the optician perform any additional OD duties, just compliment them with providing their dispensing and excellent customer service expertise. If you were to quiz the general public, they wouldn't understand each other's scopes anyway. The most important thing they care about is that they received a proper thorough eye examination, had proper consultation and purchased a great pair of fully functional spectacles fitted by a registered professional, not by one that was delegated and unregistered to perform the task. Also, why does the dispensing fee still get charged when the glasses were not personally or professionally fitted by the OD?
    Last edited by eyemanflying; 12-29-2007 at 06:57 PM.

  24. #24
    Excalibur
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    Quote Originally Posted by eyemanflying View Post
    There are too many limitations now for opticians and not enough for OD's. You can't tell me that an ophthalmic/optometric assistant is more knowledgeable and experienced than a licenced optician. One thing for sure is the amount of remakes would drop drastically. The OD's function wouldn't change and the addition of an optician under the same roof would definitely optimize patient/client care. I'm not suggesting the optician perform any additional OD duties, just compliment them with providing their dispensing and excellent customer service expertise. If you were to quiz the general public, they wouldn't understand each other's scopes anyway. The most important thing they care about is that they received a proper thorough eye examination, had proper consultation and purchased a great pair of fully functional spectacles fitted by a registered professional, not by one that was delegated and unregistered to perform the task. Also, why does the dispensing fee still get charged when the glasses were not personally or professionally fitted by the OD?
    Several points comments:

    Hiring an optician to perform duties within an optometric office may improve patient care in many cases. In some cases, it may not as the OD may have very capable technicians who are able to collect required data and work with the doctor to assist the patient during their visit. These technicians are able to perform the bulk of the procedures and tests required to render appropriate care. In my practice, the remake rate is less than 1%, so hiring an optician may not be that beneficial from this perspective. It may, however, improve sales although I am not quite sure if that would be the case-- perhaps you can enlighten me on how an optician could improve sales in an optometric office.

    As for the appropriateness of charging the fee -- since I supervise the dispensing process, I have no difficulty charging the dispensing fee in my practice. Pharmacist often are not completely involved in the dispensing on a prescription medicine yet charge the full amount of their fee.

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    We see an average of 5 remakes per day with most done at our cost. I appreciate your comments and your 1% is impressive. Perhaps we can exchange trade secrets - your sales will improve and our bottom line will grow.:)

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