VSP just announced that it was adding a second on-site clinic for one of its clients.
VSP previously and quietly opened an on-site vision care clinic at a facility for Cisco Systems in the Silicon Valley over a year ago (see my post of 6/14). The Cisco facility serves 17,000 Cisco employees.
VSP is now working with BP in Houston, Texas to build a similar facility.
VSP has all kinds of rationale for doing this from a pure business perspective. They cite that if they don’t do this, a competitor will. They cite that the majority of the patients using these facilities haven’t been to a provider in several years. They cite that this action is good for all of their providers.
What VSP doesn’t cite is that, in the interest of good provider relations, they will be taking the profits from these activities (in San Jose alone, they’ve effectively carved 17,000 Cisco employees out of the provider network and directed them to the VSP owned center) and distribute those profits on an equitable basis to the VSP providers in the effected area. Why not?
In the absence of some form of direct profit sharing mechanism, is this not just a profit grab by VSP? Of course, since most VSP patients are of dubious economic value to the optometrist provider, perhaps this is a good thing. What do you think?
So Al, is VSP directing these patients to the on site clinic or is it instead BP and Cisco have made an option available to their employees so that THEY can choose which location / provider they can go to? I’m interested in how come the choice of a patient NOT to go to any of the local providers that have been there for years is now VSP’s fault?
So that said, when these employees who have made the choice NOT to visit a local ECP and instead go to an onsite clinic, why would profits from that go to those ECP’s outside the clinic? I don’t follow your logic as I’m not seeing the role those local ECP’s have as it relates to a patient they are not serving? Doesn’t it make more sense to redistribute the profits made to the entire network of 28,000 ECP’s via the many methods VSP does?
Hi Al,
Thanks for your research on VSP. Yours is the only site where you can get news and commentary on the company’s “quiet” business moves. It’s sad to see how most ECP’s are completely blinded and/or scared to death as to the real objective of VSP’s slow but steady policies to “protect” independent ODs. Unlike Mr. “No Thanks”, I have experienced first-hand the detrimental effects these profit grabbing initiatives/policies have had on net income. I worked for an independent optometrist for more than 8 years, and her VSP exam reimbursements were never increased (not even indexed to inflation!). During the same time, CL pricing and CL exam fees for VSP patients were reduced as well as our dispensing fees for frames and lenses. Unfortunately, I believe that VSP as used the independent optometrist and has now become so big that it can dictate terms and on top of that sell software, services and hardware to a “captive audience”. ODs obsession with independence and competition with each other (as oppossed to collaboration) in the end works against them and in favor of VSP, Eyemed et al, since they have also “bought” their biggest association (AOA). I belive nowadays only the AOS is fighting the good fight. Keep up the good work.
@ Luis
? Unlike Mr. ?No Thanks?, I have experienced first-hand the detrimental effects these profit grabbing initiatives/policies have had on net income. I worked for an independent optometrist for more than 8 years, and her VSP exam reimbursements were never increased (not even indexed to inflation!). ?
Luis I hate to surprise you, but I have more years as a practicing OD than I care to admit. I was among the first round of OD?s to be a part of VSP and can likely share with you more information than you could comprehend too.
I would love to have an in-depth conversation to gather your understanding of fees and reimbursements and why they are what they are but this isn?t the easiest forum to do so. Head over to Optiboard, start the discussion and I?ll find you.
?During the same time, CL pricing and CL exam fees for VSP patients were reduced as well as our dispensing fees for frames and lenses. Unfortunately, I believe that VSP as used the independent optometrist and has now become so big that it can dictate terms and on top of that sell software, services and hardware to a ?captive audience? ?
So Luis, how has the market changed since you worked for the aforementioned doctor?
Where was EyeMed 10 years ago?
What influences outside VSP do you see as having an impact on the cost of insurance and how those influences have impacted fees for all doctors?
Did your OD or in your current location, do they accept EyeMed? How has that actually contributed to driving down fees? It has, but I?m not sure you see that.
Are you not aware that by VSP Diversifying their business they are better able to compete and better support their Provider network?
Do you not understand how VSP is gaining more control over the product market in order to more effectively compete with Lux/EyeMed who already control the more profitable portions of it, namely the frames? How about their struggle to fend off the influence of Essilor and their control over the lens manufacturing and distribution? Would you be willing to join in on a discussion on those points?
? ODs obsession with independence and competition with each other (as oppossed to collaboration) in the end works against them and in favor of VSP, Eyemed et al, since they have also ?bought? their biggest association (AOA). I belive nowadays only the AOS is fighting the good fight. Keep up the good work. ?
So it sounds as if you have a gripe with managed care in general eh? You do realize it was driven by market demand and this is no longer the 1960?s right? How?s your private pay vs managed care marketshare? Are private pay patients busting out of the recession to come pay full price to you? I?m curious.
only 20% of US popluation have vision care insurance..that means there are 80% of people without inusrances…don’t let VSP, Eyemed, or any other insurance fool you. It is nice to have the chair fill & use those patient to bring their friends and family to your office….but HMO are not as powerful as you think
Your point certainly doesn’t align with the large percentage most practices out there being driven by managed care patients vs private pay right. It also doesn’t align with all those providers out there who complain about managed care plans yet continue to cash their reimburse checks twice a month. I wonder why? Many will tell you, they can’t afford to drop being a panel provider.
I’d love to hear more about all the practices that thrive on private pay only and then compare that with those that are 50-60-70% or more driven by managed care. Care to guess which set is larger? Care to know which set of patients, those covered or non covered visit the doctor on a much more frequent basis? Welcome to the 2011, not 1973 where managed care dominates and if people don’t have insurance, they make due as long as they can vs visit your office regularly nor do they spend as much when they do.