Question:
how many weeks do you think it will take the "low cost providers" to start
making a profit? Your calc is too simple. Are you aware of the costs of doing this business?
Like the rent, the utiltities, the insurance, the employees (each surgeon
needs at
least 5 or 6 highly skilled
support people), the equipment, the royalty fees, and all the pre and post op
care?
Answer:
Even if we estimate $5,000/per/month x six
employees, that's only $30,000/month. The royalty fees to the laser
manufacturer is around $520/patient. Rent and utilities we might estimate at
$6,000/month. Malpractice insurance could be a sizable expense but if Lasik is
as safe as it's proponents claim, it shouldn't be that much. Let's assume it's
really expensive despite the "safety" of the surgery. Estimate the malpractice
insurance at $200,000/year. The monthly sum of all these expenses is
approximately $94,000/month based upon five surgeries/day.
Lasik Vision will be charging $2000 for both eyes when they open
their US Clinics. They have a promotion going for $999 for the first
1000 patients for their newly hired doctors to gain experience on.
However, they are being financed by VISX, whose lasers do not have
active eye tracking or flying spot technology. The B&L Chiron 217 Laser
still provides the best results overall.They only use this laser in
outhside the US at the moment, though just approved for US use.
There is a truism in the computer world you all know: "Garbage in; Garbage
out" The laser is computer driven. Someone (be it surgeon or managing
optometrist) has to do a very careful preoperative workup (which may involve
several exams, especially in "recovering" contact lens wearers!). This is
essential to a good result. Each laser will perform a little differently, so
someone has to keep statistics and modify the nomograms on an ongoing basis
accordingly. This attention to detail can make the difference between ok
results and great results....and it takes time (and time means money). The
laser is only as good as the data programmed into it!
