What is the value of a chart?

**scograd** · 10-07-2008, 05:19 PM

There are lots of different formulas you can use to value a practice, using gross and net incomes, etc, but what is the actual value of a chart?

I am trying to put a value on the patient charts themselves, as I am considering having another practice assume my current patient base. Is there some type of formula for that??

Also, I am assuming that you would have to consider the amount of patients with each type of insurance and to make sure that the new place is a provider for that insurance. What else would you need to look out for??

**obxeyeguy** · 10-07-2008, 07:16 PM

Is there some type of formula for that??

In todays market the formula is: patient records = how much can I get?

**Uncle Double** · 10-07-2008, 08:01 PM

I'd say probably $2-10 ea. If I were try to guess on a price I would break down by age (1,2,3 and 4-5 years), type (Glasses,contacts,medical, other) and new vs former. They're not worth alot, but if you see alot of folks it adds up. Here in Alabama you can charge patients for copies of the records ($1/page up to 20 and then $.50 after that + $5 search fee and reasonable fees for copies of photos/xrays etc.) which is realistically more than you could sell to another doctor for (can only sell to another Dr. in Alabama)

**Johns** · 10-07-2008, 09:48 PM

From my experience of buying and selling a few practices, I think that the optometric charts are one of the most over-rated assets of a practice.

When I was repping frames, I twice saw young ODs buy a practice, send out the recalls, and sit and wait. They were both underwhelmed by the response, or lack of, by the former patients. When you buy a practice, having a file cabinet full of records does not guarantee success.

From a marketing aspect, it is very easy to buy very specific custom lists that can target your potential client base. And don't forget, if you are dealing with a retiring OD (I know you're not), if you don't take the records, who will? If you don't take them, the newly retired OD is still responsible for maintaining them, which requires sending out the former patients' records when they request them. That cuts into golf time! I had a local OD call me up and offer to sell me his records, and I passed. Four months later he called and asked if I wouldn't just take them.

You also mentioned insurance, and that is a huge consideration. How many of those patients wouldn't be patients if you weren't a provider on their plan? In this case, the insurance devalues the charts because the relationship is often based on coverage, and not quality of care. The next guy that comes along with that's a provider for the same insurance will be just as eligible to be their optometrist, with or without the chart.

**drk** · 10-08-2008, 10:37 AM

Johns is right. I wouldn't pay a penny.

**CME4SPECS** · 10-08-2008, 11:57 AM

Several years ago an independent optical across the street closed after being in business 9 or 10 years. We paid him a buck for each of his files. We entered all of the names and addresses into the computer and mailed each a card stateing that their eyeglass records had been transfered to our office. We encouraged them to come to us and we would service the glasses as tho we had madde them. We captured alot of those people as customers, so it was worth every penny.

**Johns** · 10-08-2008, 12:03 PM

Originally Posted by CME4SPECS

Several years ago an independent optical across the street closed after being in business 9 or 10 years. We paid him a buck for each of his files. We entered all of the names and addresses into the computer and mailed each a card stateing that their eyeglass records had been transfered to our office. We encouraged them to come to us and we would service the glasses as tho we had madde them. We captured alot of those people as customers, so it was worth every penny.

I'm glad it worked out for you; however, if you hadn't bought the files, what would they have done with them?

**scograd** · 10-08-2008, 12:27 PM

The statistics say something like only 15% of patients will go to a new place.

To make it a bit different, what is the value of a chart to a corporate optical? Many patients walk in without the Rx, and an employee just asks the doctor's office for the Rx; its a sure thing. What happened if those charts were no longer there?

Now what is the value of a chart?

**Johns** · 10-08-2008, 12:37 PM

Originally Posted by scograd

.

To make it a bit different, what is the value of a chart to a corporate optical? Many patients walk in without the Rx, and an employee just asks the doctor's office for the Rx; its a sure thing. What happened if those charts were no longer there?

Not to mention the fact that people that will go to a corportate optical are often the type of customer that will change providers at the drop of a BOGO coupon.