There are rules for business relationships between optometrists and opticians, optical companies and health plans, including the outlawing of employment by health plans of optometrists as outlined in California’s Business & Professions Code §655.
Lease term cannot be less than one year.
Lease terms cannot be terminated for “reasons that constitute interference with the practice of optometry.”
Lease payments cannot be based on number of eye exams performed, prescriptions written, patient referrals or the sale or promotion of the products of an optician, optical company or health plan.
The selection and supervision of optometric staff is under the optometrist’s control.
The scheduling of patients and the amount of time the optometrist spends with patients is under the optometrist’s control.
Fees charged for optometric products and services are under the optometrist’s control.
The examination procedures and treatment provided to patients is under the optometrist’s control.
The optometrist’s contracting with managed care organizations is under the optometrist’s control.
The optometrist’s records shall be the sole property of the optometrist. Only the optometrist and those persons with written authorization from the optometrist shall have access to the patient records and the examination room, except as otherwise provided by law.
The optometrist has exclusive control over the fees charged for products and services, examination procedures and treatments provided.
An exception is if the optometrist has contracted with a health plan as part of the lease, then the optometrist may only collect fees for services that are not included in a health plan’s products and services.
Health plans will no longer be allowed to employ doctors of optometry to provide services.
All signs and displays shall be separate and distinct from that of the other occupants and shall have the optometrist’s name and the word “optometrist” prominently displayed. If a health plan is involved, this provision does not prevent a health plan from advertising its affiliations.
The optometrist may advertise the optometrist’s practice location with reference to other occupants.
The optometrist or registered dispensing optician may advertise their participation in any health plan’s network or the health plan’s products in which the optometrist or registered dispensing optician participates.
There shall be no signs displayed on any part of the premises or in any advertising indicating that the optometrist is employed or controlled by the registered dispensing optician, health plan or optical company.
Except for a statement that an independent doctor of optometry is located in the leased space, in-store pricing signs and as otherwise permitted, the registered dispensing optician or optical company shall not link its advertising with the optometrist’s name, practice, or fees. If a health plan is involved, this provision does not prevent a health plan from advertising its affiliations.
A health plan shall not advertise the optometrist’s fees for products and services that are not included in the health plan’s contract with the optometrist.
The retailer is allowed to include in the lease commercially reasonable terms that:
The optometrist’s failure to maintain a license to practice optometry or the imposition of restrictions, suspension or revocation of the optometrist’s license or if the optometrist or the optometrist’s employee is or becomes ineligible to participate in state or federal government-funded programs.
Termination of any underlying lease where the optometrist has subleased space, or the optometrist’s failure to comply with the underlying lease provisions that are made applicable to the optometrist.
If the health plan is the landlord, the termination of the provider agreement between the health plan and the optometrist.
Other reasons pursuant to the terms of the lease or permitted under the Civil Code.
In no case shall the landlord terminate the lease for reasons that constitute interference with the practice of optometry.
The landlord shall not terminate the lease solely because of a report, complaint, or allegation filed by the optometrist against the landlord, a registered dispensing optician or a health plan, to the State Board of Optometry or the Department of Managed Health Care or any law enforcement or regulatory agency.
The landlord shall provide the optometrist with written notice of the scheduled expiration date of a lease at least 60 days prior to the scheduled expiration date. This notice obligation shall not affect the ability of either party to terminate the lease pursuant to this section. The landlord may not interfere with an outgoing optometrist’s efforts to inform the optometrist’s patients, in accordance with customary practice and professional obligations, of the relocation of the optometrist’s practice.
No. The law requires the leased space to be definite and distinct from space occupied by other occupants of the premises, have a sign designating that the leased space is occupied by an independent optometrist or optometrists and be accessible to the optometrist after hours or in the case of an emergency, subject to the facilities general accessibility.
No, there is an exception for organizations like Kaiser.
Please contact the State Board of Optometry if you feel the law is being violated. Additionally, COA will investigate and intervene on behalf of our members, if possible, to ensure that the new law is fully enforced. If you lease space from an optical company, health plan or optician and are having concerns about corporate control of your practice, feel free to contact Kristine Shultz, kshultz@coavision.org.
COA Champion Supporters:
Copyright © 2024 California Optometric Association. All rights reserved.
Chief Strategy Officer
Dr. Lance Anderson is the Chief Strategy Officer at PECAA, where he is engaged in all aspects of company strategy. He co-founded PECAA in 2007 and helped lead the organization as it grew from a small local Portland study group to a national alliance of independently owned eye care practices. He served as a board member of Rev-360 from 2015 – 2021 and helped oversee the management and successful sale of Revolution EHR, Visionary Partners, and eventually PECAA.
He earned his Doctor of Optometry degree from Pacific University in 1991. He started his own optometry practice in 1993 in Hillsboro, OR, and was able to grow the practice into a busy three-doctor clinic. He retired from clinical care in 2021 and then moved to New York City where he was tasked with helping to integrate PECAA with the HEA buying group. He recently moved to Nashville, TN where he will continue to be actively involved in creating the future vision for PECAA as it is integrated into the VSP family of businesses.
Chief Member Experience Officer
Dr. Justin Manning is the Chief Member Experience Officer at PECAA, where he leads the member experience team, encompassing member education, the Member Business Advisory services, Events, and the Cold Start program. He is the founder and host of the Practice Advantage podcast. Prior to joining PECAA, he founded The Keratoconus and Scleral Lens Institute at Bettner Vision in Colorado Springs, and eyeLeader, a consulting company focused on leadership development, technology in eyecare, and population health.
He has contributed to Review of Optometric Business and has lectured nationally and internationally on specialty contact lenses, design thinking, population health, and the patient experience. He earned his Doctor of Optometry degree from The Ohio State University and completed a residency in Geriatric Optometry at the VA Puget Sound Healthcare System in Tacoma, WA, a Master of Public Health degree at Salus University, and a graduate certificate in Customer Experience from the CU Boulder Leeds School of Business. He is driven to help all independent eye care professionals grow their businesses and enjoy their practices every single day.
About information
About information
About information