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Turnover and eye examinations
Total practice turnover reduced by less than 0.5 per cent from September to 164 Index points and this is 2 per cent lower than October last year. The total number of eye examinations also fell from last month by almost 1 per cent to 104 Index points and this is 5 per cent lower than October last year. The percentage of examinations which are NHS compared to private remains the same at 76 per cent. In the same month last year this figure was higher at 78 per cent. Turnover per eye examination increased by almost £2 this month to £150 which is the same value as October last year but it is worth noting that this is an improvement of £10 on October 2010.
Dispensing
The average dispensing rate is the percentage of total eye examinations resulting in a spectacle purchase, which is calculated by dividing the total volume of dispensing by the number of eye examinations carried out. This month the dispensing rate increased by 1 percentage point to 63 per cent which is also 1 percentage point higher than October last year. Figure 1 shows the rate was below 60 per cent from September 2009 right through 2010 and the moving average (which takes into account the previous 12 months' data) was falling. Over the course of the next 18 months the moving average was increasing steadily as the volume of spectacle sales increased faster than the growth in the number of eye examinations. Since June of this year the moving average has been falling.
Trends over the last three years in average dispensing rates (Figure 2) shows both 2009-2010 and 2010-2011 had linear growth at the same rate. The linear trend-line for the last 12 months is flat, because the volume of spectacle sales has been decreasing over the past five months at a faster rate than the fall in the number of eye examinations, (the linear trend-line, takes into account only the data in the series, rather than historic data).
Average dispensing rates differ significantly between practices (Figure 3). This month the sample Index shows a minimum dispense rate of 26 per cent and a maximum of 117 per cent, which are not as diverse as the same month last year which were 18 per cent and 147 per cent respectively. The chart shows our sample in turnover groups for October. The lower quartile in each group represents the 25 per cent returning the lowest dispensing rates for the month. The median quartile represents the middle group, 50 per cent of the sample, and the upper quartile is the 25 per cent recording the highest dispensing rates. Generally, it is not appropriate to report in averages as sample practices vary considerably; however, with a quartile analysis they become more meaningful. To identify where your practice fits and assess performance against the sample Index, calculate your gross practice turnover and dispensing rate for October, identify which quartile you fall into. In all categories, if your practice falls below the median line it is perhaps possible for you to re-evaluate the range of products or make operational changes. If your practice falls above the median line the challenge is to ensure you maintain or improve by continuing to evaluate all aspects of your business.
The highest dispensing rate in October was 117 per cent, recorded by one of the smaller turnover practices, which is the same scenario as last year. A figure over 100 per cent can be explained by patients electing to take their prescriptions to another practice for fulfilment, delaying a purchase decision having completed the eye examination in a previous month, by purchasing another pair of spectacles or by the practice performing a small number of eye tests in that period.
We identified last year that the lower and upper turnover groups outperformed the middle turnover groups and this is also the case this year. The averages show that the lower turnover group produced the highest average dispensing rate of 68 per cent, followed by the upper turnover group at 63 per cent. However, the upper quartile in each turnover group performed at almost the same level.
Sample average total dispensing, the Index value of the total number of spectacles of all lens types sold (Figure 4), shows a fall in December followed by growth through to May of this year. The moving average for this key performance indicator is increasing up until June of this year but has been falling since then and the November 2011 peak has resulted in a falling linear trend. October saw a slight reduction of 2 per cent on last month to 88 Index points, which is 12 per cent lower than last October's figure but the annual growth figure remains positive at 6 per cent.
Lenses
The lens mix (Figure 5) this month is 71 per cent single vision, 19 per cent progressive and 10 per cent bi/trifocals. In the same month last year the lens mix was 70 per cent single vision, 21 per cent progressive and 9 per cent bi/trifocals.
Single-vision lenses reduced by 3 per cent from last month to 62 Index points, 8 per cent lower than last October. Bi/trifocals also went down by 3 per cent from September to 62 Index points, 2 per cent lower than last October. Progressive lens sales were the same as last month at 202 Index points. All lens types this month show positive annual growth.
Re-glazes remained at 11 per cent, the same as last month and October last year.
Photochromic lenses reduced by 1 percentage point from September and last October at 13 per cent of spectacles dispensed. Anti-reflective coatings have been provided on 45 per cent of spectacles dispensed in October, a 2 percentage point reduction from September but the same percentage as October last year.
New contact lens fits were down by 2 per cent to 121, Index points, 3 per cent lower than October last year.
Sales of contact lens solutions remained the same as last month at 84 Index points, but this is a 4 per cent reduction on the value of sales last October.
Please note all figures are adjusted to a 25-working-day month. In October 2012 there were 27 working days. ?