VSP - The 800# Gorilla

Definition:  800# Gorilla - An overbearing entity in a specific industry or sphere of activity. A seemingly unbeatable presence always to be reckoned with; whose experience, influence, and skill threatens to defeat competitors with little effort.

Fact:  VSP proudly communicates that the company has been voted "100 Best Companies to Work For in America" by Fortune Magazine every year since 2000.  Hmmm, I wonder if they include the O.D. providers in the survey as "employees?" 

Fact: J.D. Power and Associates ranked VSP “Highest in Member Satisfaction Among National Vision Plans, Three Years in a Row (2004 -2006).” Hmmm, I wonder if VSP sent a thank you to the O.D.  providers for providing "Highest in Patient Satisfaction."  After all, who delivers the service?

Fact: VSP announces that it begins also offering a “direct to consumer” comprehensive eyecare plan to those who don’t have access to vision coverage through an employer.  Hmmm, I wonder if they asked the providers if it was OK to offer discounts to your existing patients?

Ever wonder about the irony of it all?  While you struggle to pay your employees a competitive wage and provide reasonable benefits, you're also paying VSP employees fully paid health benefits; dental; vision; employee assistance; up to 15% 401k contribution; life insurance equal to 3x salary; disability up to 50% of salary; 4 weeks of paid vacation after 10 years; up to $5250 reimbursement for education and, for some, 50% of the amount over $5250; average bonus equal to 4% of salary...the list goes on and on.

visit https://www.vsp.com/careers/html/benefits.jsp#01 for an eye-opener.

So, I ask you to contemplate this: If VSP's "products" are your services (which they buy from you at deep-deep discount and resell to employer groups and, now, directly to consumers), then the monies that deliver all these employee salaries, benefits and programs come directly out of your pocket (I read somewhere...but don't hold me to it...that VSP's average salary was over $90k). 

And contemplate this:  Who owns VSP?  Who are the shareholders?  Where are the annual financial statements? What are their financial reserves?  What do they really do with their profits?  Whose money is it?  Are your VSP reimbursements growing at a rate equal to that of their employee salaries and benefits? 

While VSP has certainly helped grow the market for eyecare, is there a point where their dominance in your practice becomes more harmful then good?  Or are they the "savior" that they position themselves to be?

Hmmm...what do you do with this 800# Gorilla?   

Comments

[reese]

Thanks for one's marvelous posting! I actually enjoyed reading it, you could be a great author.I will be sure to bookmark your blog and will often come back down the road.

[TF3673]

VSP financial information is much deeper than indicated in the post. VSP's attempts to maintain their non-for-profit (!) tax exempt status have suffered a number of defeats starting in January 2003 up through January 2008. However, VSP's most recent Quarterly financial statement (March 31, 2008) still maintains they will continue to fight for their 501(c)(4) status. Descriptions of their 401k plan matching contributions, deferred compensation and non-pension benefits are astounding.

Equally interesting was the final note (Note G: Subsequent Events) in the statement saying they have purchased another vision insurance company for $700 million in April 2008 and will file with the Connecticut Dept. of Insurances in May, 2008. How much bigger does the 800 pound gorilla get with 700 million bananas?