Optometrists Industry Profile

About 20,000 optometrists offices operate in the US with combined annual revenue of about $12 billion. No major companies dominate the industry, which is highly fragmented: the 50 largest companies account for less than 10 percent of revenue.

Optometrists perform routine eye examinations, mainly to write prescriptions for corrective lenses, and can treat some simple eye conditions. Opticians, covered in a separate industry profile, sell eyeglasses and contact lenses in retail stores based on prescriptions written by optometrists or ophthalmologists (physicians who specialize in eye care).

COMPETITIVE LANDSCAPE

Demand is driven by demographics. The aging of the US population increases demand for eye exams and glasses as well as increasing incidences of eye disease such as glaucoma, which is often diagnosed by an optometrist although treated by an ophthalmologist. The profitability of optometrist practices depends on efficient operations and whether they also sell glasses and contact lenses. Eyeglass purchases are mildly cyclical with the economy, as many consumers view extra glasses as an expense that can be deferred. The industry is labor-intensive: average annual revenue per employee is about $100,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

Optometrists perform routine eye examinations, mainly to write prescriptions for corrective lenses, and can treat some simple eye conditions. Complicated conditions like glaucoma, cataracts, or retinal detachments are referred to ophthalmologists. Optometric eye examinations are fairly standard, usually take less than 20 minutes, and are charged at a flat fee. Revenue from eye exams ...