Preservation and Restoration of Vision:

Vision for the Future, Part 2: Economic Benefits of Ophthalmologic Care: Rules of Thumb in Cost Recovery

When we examine eye care programs that are operating at peak performance we see the 80/20 rule in effect: Approximately 80% of blindness is due to cataract; 80% of program costs are for cataract surgery; and 80% of revenue comes from cataract surgery.

By applying this 80/20 rule, it makes sense to develop the per unit cost of cataract surgery as a relatively accurate tool for measuring the efficiency, productivity and quality of an eye care program.

The per unit cost is determined by adding up all operating expenses and dividing them by the number of major surgeries.

The per unit cost of cataract surgery can be used as a tool for measuring efficiency and for setting goals. Cost recovery and its measurement tool - per unit cost - then becomes a "paradigm" for a comprehensive planning process for developing cost effective, high-quality eye care that is accessible and affordable to the poor.

Another formula we have discovered is that people can afford to pay their monthly family income for cataract surgery with IOL.

This rule seems to hold true for different economies with different standards of living and different per capita incomes.

We have also found it to be true that the cost of cataract surgery can be reduced to a level commensurate with the average monthly family income of the bottom 60% of the population.

Taking this phenomena into account, in our planning we strive to increase the volume of cataract surgery to decrease the unit cost to make cataract surgery affordable to the population.

It is a planning process by numbers: we first begin with an understanding of the varying paying capacity of the population, and then we examine the production side to see how to increase productivity and market demand while lowering costs in order to arrive at a projected unit cost equal to the average monthly income of the bottom 60% of the population.

Next: Three Key Points for Lowering Per Unit Cost of Cataract Surgery

Also see:

• Contents of Economic Benefits of Ophthalmologic Care
  
  
• Table of Contents for Vision for the Future