2008 Woodie Awards
Laser eye procedures less popular
By: THE ASSOCIATED PRESS
Issue date: 9/2/08 Section: State
CINCINNATI - The number of laser eye surgery procedures conducted by publicly traded LCA-Vision Inc. dropped 38 percent in the second quarter from a year ago, a reflection of industrywide troubles.
In a faltering economy, consumers are more likely to choose glasses or contacts instead of shelling out thousands of dollars for the usually popular Lasik eye surgery.
"When times are good, some people won't hesitate to spend $2,000 or $4,000 for an elective corrective treatment," said University of Missouri-St. Louis professor Stephen Moehrle. "In tough times, putting on a pair of glasses becomes a little more tolerable."
Cincinnati-based LCA-Vision has recently had layoffs, a salary freeze and large cuts to its advertising and marketing budgets. The 38 percent drop in procedures in the second quarter compared to the same time last year led to a 30 percent decline in quarterly revenue.
The company has seen procedures fall from 59,101 in the first quarter of 2007 to 44,159 in this year's first quarter, and from 48,668 in last year's second quarter to 30,086 during the same period this year.
It is an example of a nationwide trend. Vision correction procedures, which peaked in 2000 at about 1.4 million, are expected to decline 17 percent this year from last year's 1.3 million, according to research firm Market Scope.
LCA-Vision was founded in 1995 when Stephen Joffe merged two Cincinnati firms that specialized in laser surgery: LCA-Vision Inc. and Laser Centers of America Inc. The company started with just one laser surgery machine, but has since performed more than 1 million procedures.
Bad reviews of the procedure haven't helped. The FDA said it will investigate complaints of dryness, blurred vision and pains experienced by some who had undergone Lasik.
In a faltering economy, consumers are more likely to choose glasses or contacts instead of shelling out thousands of dollars for the usually popular Lasik eye surgery.
"When times are good, some people won't hesitate to spend $2,000 or $4,000 for an elective corrective treatment," said University of Missouri-St. Louis professor Stephen Moehrle. "In tough times, putting on a pair of glasses becomes a little more tolerable."
Cincinnati-based LCA-Vision has recently had layoffs, a salary freeze and large cuts to its advertising and marketing budgets. The 38 percent drop in procedures in the second quarter compared to the same time last year led to a 30 percent decline in quarterly revenue.
The company has seen procedures fall from 59,101 in the first quarter of 2007 to 44,159 in this year's first quarter, and from 48,668 in last year's second quarter to 30,086 during the same period this year.
It is an example of a nationwide trend. Vision correction procedures, which peaked in 2000 at about 1.4 million, are expected to decline 17 percent this year from last year's 1.3 million, according to research firm Market Scope.
LCA-Vision was founded in 1995 when Stephen Joffe merged two Cincinnati firms that specialized in laser surgery: LCA-Vision Inc. and Laser Centers of America Inc. The company started with just one laser surgery machine, but has since performed more than 1 million procedures.
Bad reviews of the procedure haven't helped. The FDA said it will investigate complaints of dryness, blurred vision and pains experienced by some who had undergone Lasik.
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