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Key Takeaways
- Success in mobile optometry hinges on aggressively managing high fixed overhead by driving the Capacity Utilization Rate well above the 75% threshold needed to cover costs.
- Maximizing Average Revenue Per Patient (ARPP) beyond the initial $350 eyewear average is crucial to offset vehicle operating costs, which start high at 40% of total revenue.
- Maintaining a high Gross Margin Percentage above 85% is non-negotiable, requiring careful control over the 80% wholesale cost associated with eyewear sales.
- To hit the aggressive 2-month breakeven target, operational friction points must be identified and resolved through critical weekly reviews of utilization, ARPP, and cost metrics.
KPI 1 : Capacity Utilization Rate
Definition
Capacity Utilization Rate measures how much available time your staff spends on billable services, like eye exams. For your mobile optometry service, this metric tells you if you're maximizing the schedule of your optometrists across those expensive mobile units. Hitting 75% utilization is the minimum threshold needed to cover the high fixed costs associated with running the clinic fleet.
Advantages
- Identifies scheduling gaps where mobile units sit idle between appointments.
- Directly links staff scheduling efficiency to covering fixed overhead costs.
- Shows if marketing efforts are translating into actual, utilized service delivery time.
Disadvantages
- It doesn't account for the time variance between a quick exam and a complex sale.
- Running utilization near 100% suggests burnout risk or rushed patient care.
- It ignores revenue quality; high utilization on low-margin services still hurts profitability.
Industry Benchmarks
For specialized, asset-heavy services like mobile eye care, utilization targets are strict. While some service businesses aim for 80%, your operational breakeven point is firmly set at 75% due to the high fixed cost of the vehicle and specialized equipment. If you consistently run below 75%, you're defintely losing money on the overhead of that specific mobile unit.
How To Improve
- Implement dynamic scheduling to fill cancellations within 30 minutes of notification.
- Bundle services, like an exam plus contact lens fitting, to increase treatment duration efficiency.
- Negotiate guaranteed appointment blocks with corporate clients to reduce travel downtime between sites.
How To Calculate
Capacity utilization measures actual output against the maximum possible output. Maximum Capacity is the total number of treatments an Optometrist FTE can physically perform in a period, based on their scheduled hours. Here’s the formula you need to track monthly.
Example of Calculation
Let's use the target efficiency mentioned in Staff Productivity: 160 monthly treatments per Optometrist FTE is the practical maximum capacity. If one Optometrist completed 128 treatments last month, we calculate utilization like this:
An 80% utilization rate means this practitioner is generating enough revenue to comfortably cover their salary plus a significant portion of the fixed vehicle costs.
Tips and Trics
- Track utilization daily, not just monthly, to catch scheduling issues fast.
- Ensure 'Maximum Capacity' deducts time for mandatory vehicle checks and paperwork.
- Tie performance bonuses directly to exceeding the 75% breakeven threshold.
- Use utilization data to justify adding a new mobile unit asset or cutting an underperforming one.
KPI 2 : Average Revenue Per Patient (ARPP)
Definition
Average Revenue Per Patient (ARPP) tells you exactly how much money you pull in every time a practitioner completes an exam. It’s the key metric for understanding the value captured from a single patient visit. If you only do exams, this number stays flat; growth comes from selling glasses or lenses.
Advantages
- Shows immediate impact of cross-selling efforts, like pushing the average $350 eyewear sale.
- Directly links operational efficiency (getting patients to buy products) to top-line health.
- Provides the ceiling for Patient Acquisition Cost (PAC); your PAC must stay below 1/3 of ARPP.
Disadvantages
- Hides low patient volume if ARPP is high; a few big sales can look good temporarily.
- Doesn't account for repeat visits or patient lifetime value (LTV).
- Can be skewed heavily by one-off, high-value eyewear sales that aren't repeatable next month.
Industry Benchmarks
Benchmarks vary widely based on the service mix. For mobile medical services combining exams and retail, a good target is often 2x the cost of the primary service (the exam fee). If your base exam is $150, aiming for an ARPP of $300 or more shows you’re effectively moving inventory. This metric is vital because it justifies the high fixed cost of running a specialized mobile unit.
How To Improve
- Train staff to present eyewear options immediately after the refraction is complete.
- Create tiered packages that bundle exams with basic contact lens supplies.
- Focus sales efforts on corporate clients where employees might be more receptive to premium frame upgrades.
How To Calculate
You calculate ARPP by dividing all the money you brought in during a period by the total number of unique patients you served in that same period. This calculation must be done monthly to track progress against your sales goals.
Example of Calculation
Say your mobile clinic generated $105,000 in total revenue last month from 300 unique patients seen across all stops. We divide the revenue by the patient count to see the average spend per person.
In this example, your ARPP is $350.00. If your base exam fee is $150, this shows you are successfully selling an average of $200 in ancillary products per visit.
Tips and Trics
- Track ARPP broken down by location type (e.g., senior living vs. corporate).
- Monitor the attachment rate for the $350 eyewear package specifically.
- Ensure your EMR (Electronic Medical Record) system accurately tags revenue sources (service vs. product).
- If ARPP drops, immediately review practitioner sales training effectiveness; it’s defintely a training issue, not a demand issue.
KPI 3 : Gross Margin %
Definition
Gross Margin Percent shows how much money you keep after paying for the direct stuff you sell. For your mobile clinic, this means revenue minus the cost of goods sold (COGS), which heavily involves the eyewear you stock. You need this number above 85% to cover your high fixed costs, like the mobile units.
Advantages
- Shows true product profitability before overhead hits.
- Highlights the impact of your eyewear pricing strategy.
- Guides decisions on supplier negotiation for frames and lenses.
Disadvantages
- Ignores high fixed costs like vehicle depreciation and salaries.
- Can be misleading if eyewear inventory management is poor.
- Doesn't account for service delivery costs outside of materials.
Industry Benchmarks
For specialized medical services, a gross margin above 85% is aggressive but achievable if service fees are high and material costs are tightly controlled. Traditional retail often sees 40-60%, but since you bundle high-value exams with eyewear, your target reflects premium pricing for convenience. If your margin dips below 80%, you’re likely overpaying for wholesale frames or discounting too heavily.
How To Improve
- Negotiate better wholesale terms for frames, aiming to reduce the 80% cost component.
- Increase the Average Revenue Per Patient (ARPP) by improving cross-selling of premium lenses.
- Ensure service fees for exams are priced high enough to absorb material costs easily.
How To Calculate
You calculate this by taking total revenue and subtracting the Cost of Goods Sold (COGS), then dividing that gross profit by the revenue. COGS here must include the wholesale cost of all eyewear sold.
Example of Calculation
If a patient visit brings in $400 in total revenue, and your total Cost of Goods Sold (COGS) for that visit—mostly the wholesale eyewear cost—is $60, your gross profit is $340. This yields a high margin, but you need to watch that eyewear cost defintely.
Tips and Trics
- Track COGS separately for services versus eyewear sales.
- Review margin monthly against the 85% threshold.
- If ARPP rises due to eyewear, verify the underlying wholesale cost didn't creep up.
- Use margin analysis to pressure test supplier contracts quarterly.
KPI 4 : Patient Acquisition Cost (PAC)
Definition
Patient Acquisition Cost (PAC) tells you how much cash you burn to sign up one new patient. It’s vital because it directly measures marketing efficiency against patient value. You need this number low, specifically keeping PAC under one-third (1/3) of your Average Revenue Per Patient (ARPP).
Advantages
- Shows marketing ROI immediately.
- Guides budget allocation between channels.
- Ensures sustainability if PAC stays below the 1/3 ARPP threshold.
Disadvantages
- Ignores patient lifetime value (LTV).
- Can be skewed by one-time large campaigns.
- Doesn't account for operational costs tied to onboarding.
Industry Benchmarks
For specialized medical services like yours, a sustainable PAC often sits below $150, depending heavily on the service mix. If your ARPP is high due to expensive eyewear sales, you can tolerate a higher PAC, but the 1/3 rule is your guardrail. If you are targeting corporate wellness contracts, the initial PAC might spike but should defintely normalize quickly.
How To Improve
- Boost ARPP by increasing eyewear attachment rates, aiming for that $350 average.
- Focus marketing spend on high-conversion channels like senior living facility partnerships.
- Improve patient retention to lower the need for constant new acquisition spending.
How To Calculate
You calculate PAC by dividing your total marketing budget by the number of new patients you actually brought in that month. This metric must be compared directly against the revenue you expect from that patient.
Example of Calculation
Say your marketing team spent $15,000 last month promoting the mobile clinic across various channels, and that spend resulted in 100 new patients signing up for their first exam. Here’s the quick math:
If your Average Revenue Per Patient (ARPP) for that period was $450, this $150 PAC is healthy, as it is well under the target threshold of $150 ($450 / 3).
Tips and Trics
- Track marketing spend by acquisition channel monthly.
- If PAC exceeds 35% of ARPP, immediately review ad creative and targeting.
- Ensure marketing counts only new patients, not repeat visits.
- Remember that initial setup costs skew early PAC figures; wait three months for stabilization.
KPI 5 : Revenue Per Mobile Unit
Definition
Revenue Per Mobile Unit (RPMU) shows how much money each expensive clinic vehicle generates monthly. This metric is crucial because it tells you if adding another van makes financial sense. You must review this number every month to justify fleet expansion.
Advantages
- Directly assesses vehicle asset efficiency against its high fixed cost.
- Provides clear data for capital expenditure decisions regarding fleet size.
- Links operational output directly to the return on your largest physical assets.
Disadvantages
- Can mask poor utilization if revenue is high but driven by only one large contract.
- Ignores vehicle downtime or maintenance scheduling issues that affect service days.
- Doesn't account for the specific geographic profitability of the route assigned to the unit.
Industry Benchmarks
For mobile service delivery, a healthy RPMU should significantly exceed the fully loaded monthly cost of operating that unit, including depreciation and staffing. If your fully loaded monthly unit cost is $12,000, you need RPMU well over $15,000 to ensure adequate contribution margin before corporate overhead. Benchmarks vary widely based on service density; high-touch medical services often target 2.5x the variable operating cost per unit.
How To Improve
- Increase Average Revenue Per Patient (ARPP) by pushing high-margin eyewear sales (target $350 per patient).
- Optimize routing to maximize daily stops, boosting total treatments per unit.
- Ensure Capacity Utilization Rate stays above 75% to maximize revenue capture from existing assets.
How To Calculate
Example of Calculation
You calculate this by taking your total monthly top line and dividing it by how many vans you had running that month. Here’s the quick math for October. If total revenue was $280,000 across 4 mobile clinics, the RPMU is calculated as follows:
This means each clinic generated $70,000 in revenue that month. What this estimate hides is that if one clinic was down for maintenance for a week, its contribution is defintely low, skewing the average.
Tips and Trics
- Track RPMU alongside Vehicle Operating Cost % weekly.
- Set a minimum acceptable RPMU threshold before approving the next vehicle purchase.
- Segment RPMU by route type (e.g., corporate vs. senior living).
- If Patient Acquisition Cost (PAC) is low but RPMU is weak, focus on patient value, not just volume.
KPI 6 : Vehicle Operating Cost %
Definition
This metric shows how efficiently your mobile operations run. It compares the total cost of keeping your vans moving against the total money they bring in. For this optometry service, the target starts at 40% in 2026, and you must review it weekly.
Advantages
- Pinpoints immediate cost overruns from fuel or unexpected repairs.
- Directly links vehicle expense to revenue generation performance.
- Forces weekly operational review, catching small issues before they become big problems.
Disadvantages
- Can mask poor scheduling if utilization remains low despite low costs.
- Doesn't automatically include non-cash costs like vehicle depreciation.
- A sudden drop might signal a unit is unexpectedly sidelined, not true efficiency gain.
Industry Benchmarks
For specialized mobile medical services, keeping this ratio below 35% is often the goal once you hit steady scale. Starting at 40% in 2026 sets a realistic initial hurdle, acknowledging startup fleet inefficiencies. If you're running higher than 45%, you're defintely leaving money on the table.
How To Improve
- Negotiate bulk fuel contracts or use specific fleet purchasing cards.
- Implement preventative maintenance schedules to avoid costly emergency repairs.
- Increase Revenue Per Mobile Unit by optimizing daily routes for maximum patient density.
How To Calculate
Calculate this by dividing all costs associated with running the vehicles by the total money earned that period. This ratio tells you what percentage of every dollar earned went just to keeping the wheels turning.
Example of Calculation
Say your fleet incurred $10,000 in fuel and maintenance costs last month, but your total revenue from exams and eyewear sales was $25,000. Here’s the quick math to see your efficiency.
This means 40 cents of every dollar earned went straight to vehicle operations that month.
Tips and Trics
- Track fuel costs separately to spot immediate spikes in pricing.
- Ensure maintenance costs include driver time spent on service logistics.
- Tie this metric directly to Capacity Utilization Rate for context.
- Review this ratio weekly, not just quarterly, to catch issues fast.
KPI 7 : Staff Productivity (Visits/FTE/Day)
Definition
Staff Productivity (Visits/FTE/Day) tells you how many patient visits each full-time equivalent (FTE) clinician handles daily. This metric is crucial for a mobile clinic because labor is your biggest variable cost. It directly measures labor utilization—are your expensive optometrists booked efficiently across the routes?
Advantages
- Pinpoints scheduling inefficiencies in daily routes and travel time.
- Helps set accurate staffing needs based on patient demand and capacity.
- Shows if you are hitting the target of 160 monthly treatments per doctor.
Disadvantages
- Ignores visit complexity; a simple checkup counts the same as a complex exam.
- May pressure staff to rush appointments, hurting the patient experience.
- Doesn't capture necessary non-billable work, like vehicle prep or charting time.
Industry Benchmarks
For mobile optometry, the goal is maximizing utilization toward 160 monthly treatments per Optometrist. This translates to roughly 8 visits per day if you assume 20 working days per month. If your current rate is below 6 visits/day, you have significant operational slack to address before adding more mobile units.
How To Improve
- Use route optimization software to minimize travel time between patient sites.
- Bundle appointments geographically, scheduling corporate clients on the same day.
- Streamline patient intake forms done before the doctor arrives, saving 10-15 minutes per visit.
How To Calculate
To calculate this, take the total number of patient visits recorded in one day and divide it by the total number of clinical FTEs working that same day. This gives you the average number of patients seen per doctor. Here’s the quick math:
Example of Calculation
Say your mobile fleet completed 90 patient visits across all units on Tuesday, October 15, 2024. If you had 10 clinical FTEs scheduled that day, you divide the visits by the staff count. This calculation shows your daily operational efficiency.
Tips and Trics
- Track this metric weekly, not monthly, for quick course correction.
- Segment the data by mobile unit location or route density to find outliers.
- Ensure FTE count only includes doctors actively seeing patients that day, excluding training.
- If a doctor consistently hits 160 treatments
Related Blogs
- How to Estimate Startup Costs for a Mobile Optometry Clinic
- How to Launch a Mobile Optometry Clinic: A 7-Step Financial Guide
- How to Write a Mobile Optometry Clinic Business Plan (7 Steps)
- How Much Does It Cost To Run A Mobile Optometry Clinic Each Month?
- How Much Do Mobile Optometry Clinic Owners Make?
- 7 Strategies to Increase Mobile Optometry Clinic Profitability
Frequently Asked Questions
A healthy utilization rate should exceed 75% for clinical staff like Optometrists to cover high fixed costs like the $10,700 monthly overhead Initial utilization starts lower, around 600% in 2026, so growth focus is defintely critical;