Al Cleinman's Blog

It's Moving Day

Hello all, I’ve moved this blog to a new address which will give my blog additional capabilities.  You can find me at http://alsblog.cleinman.com.  All of my posts, and all of your comments, have been carried over to this new space.  You will want to update any bookmarks or links to the new address.  Thanks for stopping by, and I hope you enjoy the new site!

You're Kidding, Right?

A reader, who happens to visit many optometrist's offices, sent me a copy of VSP's Promotional Literature for their individual plan.  This is the plan where VSP goes directly to consumers and convinces them that they can buy eye care and eyewear at a discount.  The premiums for this plan are, of course, paid directly to VSP.  Then, VSP shares these premiums with the provider in the form of paltry reimbursements.  VSP, of course, says that they're driving new patients to their providers and everyone wins.  The consumer gets a discount.  The provider gets a new patient.  And VSP gets a boatload of money.

Sounds like a logical plan.

But here's the amazing part.  This brochure was picked up in a provider's office.  Yep, right there in the waiting room.  This astute provider was telling his patients "Hey, you don't have to pay me what I usually charge, just join up with VSP and you can get a discount." 

There are two seriously big concerns with this.  First, VSP is no longer moving patients exclusively to private practice optometry...nope.  Today, they own their own retail operation within the Cisco Campus (not likely the one and only); they're sending your patients to COSTCO; and soon, logic says, they'll be sending more to COSTCO and others as VSP and the likes of COSTCO plot to develop a special plan designed exclusively for COSTCO members.

The other problem with this is that this particular provider has already secured the patient.  If they simply WOWed the patient, they wouldn't have to worry about the patient going elsewhere for service.  Why would you sell against yourself?

According to our research, the difference between gross charges and collected dollars has eroded by eleven percentage points over just the past five years.  That means that you have eleven percent fewer dollars to pay your staff; your overhead; yourself.  And it's not like you can make it up on volume; since VSP now demands additional discounts for second pair sales.

THROW OUT THOSE BROCHURES!  Fill the landfills.  It's time to cry "we're sick and tired and aren't going to take it anymore!"

Download VSP Vision Care Coverage - Individual Plan

Some Questions for VSP Regarding their Cisco Vision Center

The banter about VSP's opening of a vision center on the Cisco campus in San Jose has been significant.  Announced on this blog on May 11th, the topic is hot enough for VSP to feel compelled to respond with various PR efforts, including releases to the press and a national "town hall" tour.  These efforts are likely the work of an expensive PR firm retained by VSP for just such events.

In one recently released communication, VSP works hard to rationalize their action as a competitive response.  "If not us, then it would have been someone else," they say.  OK, I get that.  Competitive actions require competitive response.  I'm a firm believer in the law of the marketplace.  But had VSP done just two things...only two...they could have turned this sow's ear into a silk purse.  And the fact that VSP doesn't do these things generates other questions, for sure.  So I have two questions for VSP:

a) If this is so good for your providers, why not announce the action back last fall when you took it instead of hiding it and then reacting once it was discovered?  Why not transparency?

b) If this is so good for the providers, why not take the profits from the activity and return them to the VSP providers within a 20 mile radius of the Cisco Campus.  After all, this can't be a highly profitable activity, with only 1000 on-site claims.  Why not give the money back to your providers, VSP? 

My own opinion  of VSP's strategy is well documented in this blog.  Let's see if VSP has the cojones to respond.

Hey, Help an Uncle Out!

My nephew, Jordan, is 15 and is a car nut.  He's a very bright young man with lots of entrepreneurial energy.  He's been writing a blog about high performance cars for some time.  I told him that I'd make him famous...so I need the help of my readers.  Please check out Jordan's blog.  It's full of information, videos and interviews about really cool cars.  Your encouragement may help to launch the career of the next Lee Iacocca.  Thanks!

Jordan's Big Bad Auto Blog

First Impressions Count!

The other day, I found myself in Marlborough, Massachusetts for one of our Business of Eyecare Forum events.  This program, a one-day practice leadership "university," is loaded with lessons on how to deliver a lasting and memorable patient/customer experience.  The event was held at the Best Western Plaza Hotel and Trade Center, apparently about the only facility available in the area and large enough for our event.

This facility is on a large property, so the driveway is quite long.  As I turned off the highway into the driveway, I'm met with a large BANG!  My first impression of the hotel is a pothole.  From the sound, I was convinced that it was the size of a Volkswagen and that I'm now in need of a front-end alignment.  As I proceed up this quarter-mile long drive, I begin having to reach back to my country-road driving experiences; dodging pothole after pothole.  The driveway is a virtual obstacle course.  Needless to say, having just bought a new car, I wasn't very pleased with the fact that my expensive high-performance tires were taking a beating.  Worse, though, was my concern for the 200 participants of the Forum.

This first impression set the stage for my entire hotel experience at the Best Western Plaza Hotel and Trade Center in Marlborough, Massachusetts.  If management/ownership is so blase about their driveway, the very first thing that a visitor encounters, what else were they missing.  Well, I certainly began noticing all that was wrong with the physical plant (yes, it's old and tired).  And, in spite of the good service by attentive staff, my overall impression of this facility and it's management was very, very poor. 

My negative perspective of the hotel was exacerbated when I placed a call through the front desk and tried to meet with the General Manager, Mr. Rick Skinner, to share my concerns over the driveway.  In spite of the fact that we were the only significant customer at the hotel that day; and in spite of the fact that we were spending tens of thousands of dollars at his hotel, Mr. Skinner chose to respond to my query with what amounted to "I'm busy...have him speak to someone else."  Now, Mr. Skinner had the entire afternoon to respond to my query and chose to do otherwise.  Like the potholes, his attitude didn't sit very well with me.  Perhaps he was busy filling potholes or making arrangements for their repair, but I don't think he was demonstrating very good leadership...to his team or his customers. 

Yes, I had the choice of speaking to another hotel employee about my concerns.  I also had the choice of not doing anything.  After all, I'm sure that Mr. Skinner and his owners are aware of the potholes and the overall condition of their hotel.  But, instead, during my morning workshop on Secrets of High Performers (and likely during the 20 or so similar events that we'll have over the coming year), I used the hotel's condition and Mr. Skinner's approach as an example of how important it is to maintain a quality environment...to see your facility through your customers eyes...and to be open to listening to your customers. 

And, of course, I'm now using this experience as a lesson on brand-destruction for my loyal readers. 

In the old days, a negative experience was thought to have been told to about 15 people.  In this particular case, I'm sharing it with over 30,000 readers.  Blogs, Facebook, Yelp, etc. have totally changed the power of your customers ability to impact your brand; both positively and negatively. 

First impressions count.  Listening to your customers counts.

Is it in your Job Description?

I'm vacationing in one of my favorite areas, Rockport, Massachusetts.  This quintessential New England seaport village near Gloucester is like stepping back in time. 

So I call a favorite Rockport restaurant (My Place by the Sea) to make reservations for this evening.  It's 11am.  Phone is answered.  I tell the guy that I want to make a reservation for this evening and I'm told..."I'm sorry, you'll have to call back at noon.  We don't take reservations before noon."  I ask him if he has a piece of paper and a pencil handy and he tells me "Sir, I don't take reservations.  Our reservationist doesn't get in until noon...you'll have to call back then."

Now this restaurant has, maybe, 50 seats.  Here's another situation where there exists job description confusion.  While taking a reservation may not be in this guy's job description, choosing another restaurant to spend my $200 at certainly is in mine.  I just love these customer service moments. 

(next day)...so what's "the rest of the story?"  We show up at the restaurant.  Except for two other tables, the place is empty.  Hmmm...perhaps 30 people called before noon and got the same message that I did...and, unlike me, chose to go elsewhere.

Think about your job descriptions and culture.  What policies do you have that get in the way of good, practical, logical customer service?

What Words Should You Use?

In English, as with many other languages, the same word can mean many different things.  As just one example, the word "set" has over 450 meanings in the Oxford dictionary.  Words like run (396), go (368) and take (343) also have many, many meanings. 

Likewise, subtle changes in our languaging of marketing messages can have a dramatic impact on results.  I remember reading a study which reported that when stores changed their greeting from "may I help you" to "have you been in before" sales jumped by 15%. 

In marketing, thinking like your reader and communicating in terms they understand is key to generating the responses you desire.  For instance, many of your websites list "conjunctivitis" as something that you treat.  While the use of the word is technically correct, reality is that consumers understand "pink eye" far more than "conjunctivitis."  Further, when you communicate in emotional terms, results will soar.   We buy on emotion.  We rationalize our purchase with fact. 

This short video has a variety of profound messages, including the power of the careful use of words in your marketing messaging.  Enjoy!

Change Your Message

VSP Goes Retail - Kiss Eyewear Goodbye?

 

It appears that VSP, through it's EyeFinity division, is now the owner of an optical dispensary inside of the Cisco Campus in San Jose, CA (competing directly with private practice optometrists).  As I've written in the past, the day when VSP "goes direct" with the sale of eyewear is here.  The document below describes a logical model for VSP to attempt to promulgate...the O.D. gets the exam (at ludicrous reimbursement rates) and VSP gets the eyewear. 

You'll find this interesting reading...and a crystal ball into your future.

 ____________________________________________________________________

Vision Care—General

46. What vision care services are available at LifeConnections Health Center?

The vision care services include both optometry services and eyewear, including glasses, sunglasses and contact lenses.

Optometry services are provided onsite by an optometrist under contract with the North First Street Medical Group at the LifeConnections Health Center.

The LifeConnections Vision Center, an optical dispensary owned and operated by Eyefinity, Inc. (Eyefinity), offers you quality, stylish eyewear at discounted prices.

 

47. Where is the optometrist located?

The optometrist is located at the LifeConnections Health Center at:

Building Q, Second floor 3571 North First Street, Suite 200 San Jose, CA 95134 (Near the corner of First and Tasman)

 

48. Where is the Vision Center located?

The LifeConnections Vision Center is located within the LifeConnections Health Center at:

Building Q, Second floor 3571 North First Street, Suite 202 San Jose, CA 95134 (Near the corner of First and Tasman)

408 424-2229

 

49. Who is VSP^{® Vision Care?}

VSP® Vision Care has focused on eye health and its impact on the overall wellness of some 55 million members for more than 50 years. Cisco employees and their families have had access to VSP benefits for many years. As the largest not-for-profit vision care provider in the industry, VSP works with optometrists, including the one at the LifeConnections Health Center, to offer discounts on eyewear and eye exams to its plan members in rural and metropolitan areas throughout the United States — this includes Cisco employees and their dependents.

 

|18

　

50. Who is Eyefinity?

Eyefinity owns and operates the LifeConnections Vision Center. Eyefinity is the leading business management partner in the eyecare industry, specializing in web-based solutions that allow eyecare professionals to order products and materials.

LifeConnections Health Center Optometrist

 

51. What are the qualifications of the LifeConnections Health Center optometrist?

Vision care is provided onsite by a licensed optometrist under contract with the North First Street Medical Group at the LifeConnections Health Center. The optometrist is highly skilled, experienced, and licensed. She will take the time to get to know you and the health of your eyes.

 

52. Are all Cisco employees eligible to be seen by the health center optometrist?

All Cisco employees and their dependents eligible for benefits can use the health center optometrist. Cisco employees and their families covered under VSP will receive in-network benefits when they see an optometrist at the health center. If you’re not covered under VSP, you can be seen at the health center and pay directly for services.

 

53. What services does the optometrist offer?

The optometrist focuses on your eye health and visual acuity. You’ll receive an exam that is more than just a quick eye check—the exam focuses on your eyes and overall wellness. Our optometrist will look for vision problems within the scope of licensure and look for signs of serious health conditions, like glaucoma, diabetic eye disease, high blood pressure, and high cholesterol, too.

 

54. Is there an advantage to seeing the optometrist at LifeConnections Health Center?

Yes, there are many advantages. The health center optometrist is a proactive, collaborative member of the LifeConnections Health Center medical team. This integrated approach makes it easy for the physicians to refer to the optometrist for vision care and for the optometrist to refer patients directly to a primary care physician if a health care problem such as diabetes, high blood pressure, or high cholesterol is detected during a routine eye examination. Of course, another advantage is the time you save time by visiting an optometrist located on the San Jose campus.

 

55. Are same-day appointments available with the optometrist?

Yes, depending on availability. Call the LifeConnections Health Center at 408 424-2000 to find out.

|19

　

56. How much does it cost to visit the optometrist?

Employees and their dependents that are covered under the VSP plan will have their optometry claims processed by VSP. For eye exams, you are generally responsible for a $25.00 copay. Employees not covered under the VSP plan are responsible for the full payment, and can be reimbursed through their individual Health Care Flexible Spending Account or submit a claim with their vision care plan.

 

57. As a Kaiser member, can I see the optometrist?

Yes, you are welcome to see the optometrist at the LifeConnections Health Center, but you must pay the full cost for services, unless you are covered under VSP.

 

58. How often should I get an eye exam?

You and your doctor should determine the eye exam schedule that best meets your eyecare needs. However, as a rule, the recommended care is to have an eye exam every one to two years. Those with a family history of eye diseases, diabetic patients, and anyone whose general health is poor or who are taking medications that may have potential side effects on the eye may need to have their eyes examined more frequently.

 

59. Why should I have my eyes examined regularly?

Thorough eye exams are essential not just for detecting vision problems, but also as an important preventive measure for maintaining overall health and wellness. And your VSP coverage is designed to protect and enhance your eyesight. In fact, a thorough eye exam can detect a number of serious medical conditions, such as glaucoma, cataracts, and diabetes--even cancer. Caring for your eyes should always be a part of your regular healthcare routine.

 

60. When should my child have his or her first eye exam?

The American Optometric Association suggests that children should have their first regular eye exam at six months of age. Follow up exams should be done around age two to three.

 

61. How often should children’s eyes be examined after their initial eye exam?

As with adults, children's eyes should be examined every two years, or more often if there is an eye or vision problem, or a family history of eye disease. School children use their eyes more often than adults to read and perform other activities, so it's critical for them to have regular eye exams.

Also, it's important to remember that an eye screening typically offered at school only tests for distance. Screenings will not detect some vision problems. Your child can have problems with near vision, eye coordination, or focusing and still have 20/20

|20

distance vision. If left untreated, these problems can cause learning disabilities, headaches, and other visual discomforts.

 

62. Do I need a special eye exam as I get close to, or past, age 40?

You don't need a special eye exam over age 40, but it's critical that you have your regular eye exam at least every two years. As we get older, we are more susceptible to certain eye diseases such as cataracts, glaucoma, and macular degeneration. A regular eye exam enables your eye doctor to detect the first signs of disease and prescribe the appropriate treatments to prevent vision loss.

 

63. Are primary eyecare services provided onsite?

Your VSP Primary EyeCare benefit provides medical and urgent eyecare that goes beyond your regular VSP plan, including:

 

􀂃

 

􀂃

 

􀂃

 

􀂃

 

64. Do you need a referral for primary eyecare?

You’ll never need a referral. And if the optometrist finds that you need to see a specialist, he/she will consult and coordinate with your primary care physician, or an ophthalmologist.

 

65. Can I get a prescription from the optometrist filled at the LifeConnections Pharmacy?

Like the other practitioners at LifeConnections Health Center, the optometrist has the ability to e-prescribe to the LifeConnections Pharmacy, to the extent allowed by state law.

|21

LifeConnections Vision Center

66. Are all Cisco employees eligible to get eyewear/services at the LifeConnections Vision Center?

All Cisco employees and their dependents eligible for benefits can use the Vision Center. Cisco employees and their families covered under VSP will receive in-network benefits. If you’re not covered under VSP, you will be fully responsible for the costs of all eyewear and services.

 

67. What are the qualifications of the LifeConnections Vision Center staff?

The LifeConnections Vision Center opticians are board-registered in fitting glasses and contacts. They’re trained in image consulting and can work with you to achieve the best vision as well as the right image and look to enhance your lifestyle.

 

68. Do I have to be seen by the health center optometrist to see an optician at the LifeConnections Vision Center?

No. You and your eligible dependents can purchase eyewear at the LifeConnections Vision Center without using the services of the health center optometrist. Simply bring your prescription to the LifeConnections Vision Center and the opticians will be happy to assist.

69. What services and products are offered at the LifeConnections Vision Center?

We offer visual solutions for all of life’s needs, including glasses and contact lenses, along with adjustments and repairs of existing eyewear.

We have an exceptional range of glasses, designed to fit every need. From practical to sporty, we carry popular brands such as Calvin Klein®, Sean John®, Nike®, Tommy Bahama®, Karl Lagerfeld®, Fendi®, Coach®, and many more.

We also offer the latest in high-def lens technology, which allows you to see things more clearly.

70. How much does it cost for eyewear and contact lenses?

 

For eyewear and contact lenses, the VSP plan offers Cisco employees and their dependents a generous allowance that may offset the entire cost of the eyewear purchased. Employees not covered under the VSP plan are required to pay for

|22

services directly, and then can submit a claim to be reimbursed through their individual Health Care Flexible Spending Account.

71. As a Kaiser member, can I get glasses or contact lenses at the LifeConnections Vision Center?

Yes, you are welcome to purchase glasses and contact lenses at the LifeConnections Vision Center, but you must pay the full cost for the products you purchase, unless you are covered under VSP.

72. What savings and discounts will I receive at the LifeConnections Vision Center?

If covered under the VSP plan, you’ll get lens and brand options every year, and frames every other year, with an allowance for contacts and the contact lens exam (fitting and evaluation).

You’ll also get extra discounts and savings on glasses, sunglasses, contacts, and laser vision correction. For more details on exact allowance and discounts, please visit ciscolifeconnections.com and click on the "Vision Care" tab.

73. What are the Vision Center office hours?

The LifeConnections Vision Center is open Monday through Friday from 9 a.m. to

6 p.m. and closed on Cisco holidays.

|23

Note: Although high-def lenses are not covered under the VSP benefit plan, you’ll receive an average of 35-40 percent savings on these lens options.

Exams to monitor cataracts

 

　

Tests to diagnose eye conditions, such as glaucoma and diabetic eye disease

Tests to diagnose sudden vision changes

Treatment for eye pain or conditions like pink eye

Milk for Twice the Price

During my lectures around the country, I often discuss the importance of branding and delivering value.  My audiences are often surprised when I describe that every consumer seeks luxury and that even to a homeless person, luxury is important...and might be defined as a clean pair of socks.  I talk about $40 a bottle water and $5000 hamburgers.

Those that think luxury is dead are grossly mistaken.  And those that think the new economy has eliminated the role of luxury are missing tremendous opportunity.  What's largely missing in our industry, is that we don't describe or offer our products using  luxury terms.  BOGO and discounting are easy; but these tactics only serve to destroy our universal industry brand.  To the average eyecare consumer, our industry is thought of as just above that of the proverbial used car marketplace.

Well, here's another example of how savvy marketers use luxury to define their product and...charge accordingly.  Enjoy the read.  And take action with what you learn.

Luxury Milk

Study Supports VSP Increasing Reimbursements to Providers

The following was recently announced by VSP.  In addition to promoting the importance, and value, of a comprehensive eye health exam, one would hope that VSP would use this information to support an increase in reimbursements for the very providers who have delivered these incredible results.  After all, it's not VSP that delivers the service, it's VSP Providers. 

Would this report have any less an impact were it to say $4 billion in savings vs. $4.5 billion?  Some simple math indicates that $.5 billion represents about a $20 increase in exam reimbursements across the board.  VSP, and all vision plans, it's time for this price increase so that your providers can continue to deliver the quality of care that is the basis for your claims. 

I encourage VSP to provide a copy of the report to all Providers, so they may use excerpts in their own marketing materials.

______________________________ 

New VSP Vision Care Study Finds Employers Offering Vision Benefits Save $4.5 B on Health Care Expenditures

RANCHO CORDOVA, Calif. ––VSP Vision Care released the findings of a new study showing $4.5 billion in savings for its clients—for profits, not-for-profits and government organizations—through the early detection of chronic diseases via eyecare and vision exams covered by VSP vision insurance.

The study, conducted by Human Capital Management Services Group (HCMS), a national human capital consulting firm, found that for every $1 invested in VSP exam services—which include comprehensive, annual eye exams—during an employee’s first year with the benefit, employers can expect an average two-year total return of $1.27 in long-term health care savings. These savings are a result of avoided medical costs and increased employee productivity, the statement said.

"With health care costs spiraling out of control, these new findings showing $4.5 billion in savings clearly demonstrate the importance of stand alone eyecare benefits," said Rob Lynch, CEO of VSP Global. “Preventive eye exams support overall wellness and are much more than a means to receive prescription eyewear.”

The HCMS study further revealed that VSP clients experienced 7 percent less absenteeism, 4 percent less employee turnover and savings on insurance and workers’ compensation costs. Early detection of chronic diseases like diabetes and hypertension also increased the likelihood employees would be proactive with their health care and more likely to see a medical doctor to receive follow-up care.

“Individuals who have a VSP vision plan are three times more likely to get an annual eye exam than a routine preventive physical,” said Susan Egbert, director of eye health management, VSP Vision Care. “This means VSP providers are more likely to detect the first signs of common chronic diseases like diabetes and hypertension.”

The company’s statement noted, “VSP Vision Care is the only vision plan to facilitate nationwide, HIPAA-compliant data collection and exchange through the VSP Eye Health Management Program resulting in these cost savings and health benefits.” HCMS matched medical condition data for over 200,000 members covered by VSP Vision Care, spanning two years to medical and pharmacy data obtained from the clients’ medical and drug carriers. HCMS compared chronic patients who were first identified by VSP Vision Care against those who entered the health care system via traditional means.

The study included six large commercial clients with a total of 212,000 members. With a research reference database of more than 2.2 million employees and their families who are actively enrolled in a health plan, HCMS maintains comprehensive data catalogue containing medical and prescription costs, absenteeism, disability, workers’ compensation, and productivity costs. The study identified more than 9,000 VSP members who were first identified with early signs of diabetes, hypertension and high cholesterol by a VSP doctor.

Workin' Nine to Five...NOT!

I grew up in a very historical little village in upstate New York.  My parents were the grocers in town.  They generally worked 777...that's 7am to 7pm seven days a week.  Their biggest income year would have placed their earnings at somewhere just north of $9 an hour in today’s dollars.  They toiled at their trade for over 30 years; with my mother carrying on after my father’s passing.   

I remember the phone ringing one evening near 11pm.  “Helen (my mother’s name), I don’t have milk for the kids for breakfast, would it be too much trouble for you to open the store?”  I watched my mom get redressed and head off to open the store for a $2 sale on which she would have made about 10 cents. 

My parents store was, at times, the town coffee shop, community center, telephone booth and babysitting service.  On the side, my mother also owned an antique business in partnership with her sister.  The Valley View Antique shop started in an old chicken house in our backyard and ultimately was moved next to my parents grocery store in what is known as "The Gilbert Block (photo above).  It was run daily by my grandmother, who continued to work every day until she was in her late 80s.  My mother could often be found selling her wares at antique shows and flea markets on the weekend.  My father was always selling something door to door; be it shoes, greeting cards or candy.  On several occasions, when times were really tough, my father would take a hated factory job to make ends meet.  When Webster searched for an example of the word “frugal,” my parents and grandparents were on the short list.

Literally starting with the money in their pockets, my parents built a business that worked for them.  They raised 5 productive kids, purchased and maintained a modest home, supported a community and, while never really being close to “middle class” economically, led a highly independent life.  When you own a grocery store, you never starve.  My mother ultimately sold her small store at age 62 for enough on which to fund a reasonable retirement when combined with her SSI and her penny-pinching persona (she then became a "professional" gambler...but that's another story).   

From my parents and grandparents, I learned how to work.  And I learned that it isn’t just what you do during business hours that makes the difference; but what you do when everyone else isn’t and when most others won't.  I learned the concept of WOW service from my parents.

 

“Work Hard and Smart.  Success is not from 9 to 5, but from 5 to 9.”