Al Cleinman's Blog

Is There a Fox in your Henhouse?

I first predicted this eventuality in June, 2009 (see post of June 19, 2009).  VSP announces below that they are reaching into your patient files and driving your patients to the internet...of course, all in the best interest of the private practice ECP.  When will VSP Providers wake up and smell the coffee?   

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RANCHO CORDOVA, Calif.—Following its announcement on Dec. 20 about establishing an internal task force to examine the opportunities in the online space, VSP Global said it will launch a live beta test of eyeconic.com, www.eyeconic.com, an online optical retail store, on Feb. 18. To be launched with 8,600 small California VSP Vision Care clients, the test will enable 473,000 VSP members to use eyeconic.com to purchase contact lenses, prescription eyewear and sunwear.

The company said, “Eyeconic.com is designed to enable independent eyecare providers to compete with online optical retailers.”

Stated David Plevyak, vice president of business development and leader of VSP’s online initiative, "We've heard and understand the concerns doctors have regarding online sales, especially the fear of reducing patient visits. Recognizing the online optical space is growing rapidly, we’re confident that eyeconic.com is the right online partner for independent providers. We're making them an integral part of the online solution by referring patients to independent eyecare providers, generating revenue for providers and by offering a virtual extension of their dispensary."


After the beta test is complete, which a company spokesperson told VMail would be about four weeks, “Eyeconic.com will consider implementing any enhancements and launching the site nationally later this year” to all 55 million VSP Vision Care members. Both members and consumers will have the ability to order contact lenses and browse, select, virtually try-on, and purchase sunwear and prescription eyewear using the Marchon and Altair portfolio of products. Additional frame brands may be available in the future, although VSP said a timetable for these was not determined.

Plevyak added, “Eyeconic.com will be the only player in the online optical marketplace that will offer the ability to use a VSP Vision Care benefit to purchase a mix of brands and prescription lenses including proprietary coatings and options. We believe there’s a growing market for this type of offering and look forward to providing VSP Vision Care members with a world-class online browsing and buying experience that will connect them back to their local independent eyecare provider. Also, purchases made on eyeconic.com will generate revenue for independent providers.”

VSP said that eyeconic.com will refer consumers shopping online back to providers’ offices. The spokesperson told VMail, “When a patient shops online with a prescription from a VSP doctor or indicates a VSP doctor as their doctor when checking out, eyeconic.com will refer the patient to their VSP doctor on the order confirmation and invoice. Eyeconic.com fills the order and handles all the details. Eyeconic.com ships products directly to customers; on the site, customers who browse can view offices that carry frame brands.” In addition, “If a patient doesn't have a VSP doctor or has a prescription from an out-of-network doctor, eyeconic.com will refer them to a nearby VSP doctor.”

The company announcement also said eyeconic.com is designed “to give providers a new channel for second pair, sunglass and contact lens sales.” Asked to clarify, the spokesperson told VMail, “Providers can use eyeconic.com to reach patients who shop online, where they shop: online. They can include eyeconic.com in second pair/sunwear email promotions and direct patients walking away from their practice without filling their prescription to eyeconic.com, where they can browse and buy optical products and, most importantly, connect back to their prescribing VSP doctor.”

VSP Global cited several issues behind its development of the eyeconic.com test, among these: a change in consumer purchasing behaviors, a growing amount of direct revenue being lost by independent ECPs to online purchases and a growing need for doctors to generate a steady stream of non-office-based revenue.”

VSP network doctors will find additional details at VSPOnline on eyefinity.com.

VSP Lobbies for its Life

VSP recently announced the appointment of what appears to be a chief lobbyist dedicated to convincing Congress that VSP and other stand-alone vision plans are good for the country.  In my opinion, VSP is good for only one thing...VSP.  The logical place for Vision Care Services is within our medical insurance system; not as a stand-alone benefit provided by commercial firms whose only motivation is profit.  The American Consumer doesn't need "insurance" for eyewear any more than we need insurance for the oil changes for our car.  The American Consumer is NOT benefiting because the costs associated with eroding margins on materials are simply being shifted to medical services or worse, are actually driving down the quality of vision care. 

It's time for the likes of VSP to pack up their bags.  They squeeze Providers to provide their product...it's that simple.

I find it fascinating that VSP has the cajones to make statements like:

"VSP has a long and proven track record of promoting healthy outcomes for both patients and the companies they work for"

What about VSP's Provider's?  VSP was founded for private practice optometry.  Our studies indicate that, thanks to the likes of VSP, Providers are operating on ever-slimmer margins.  Indeed, the difference between Gross Charges and Collected Revenue has declined by double digit percentages in just the past five years.  With these eroding margins, Providers are being squeezed for the capital necessary to invest in ever-evolving technology, the best employees, updated facilities and increased service levels.  The result...the patient loses.

VSP was founded to serve its Providers and help Providers serve patients.  Now, Providers are simply a pawn in their game...to make as much money as they can. 

The squeeze continues.  Many Providers are gasping for economic air.  When are they going to revolt? 

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VSP Vision Care Appoints Cecil Swamidoss to Director of Federal Policy

RANCHO CORDOVA, Calif. and WASHINGTON—VSP Vision Care announced that it has appointed Cecil Swamidoss as director of federal policy. Based in Washington, D.C., Swamidoss will help develop and implement VSP's Federal lobbying efforts to ensure the company's 55 million members will retain access to stand-alone vision care services under the new national healthcare reform legislation.

Swamidoss has more than 10 years of Federal legislative experience having worked in Senators Herb Kohl (D-WI), John Breaux (D-LA), and Chuck Grassley's (R-IA) offices as Senior Counsel and/or assistant dealing with national health care policy issues, Swamidoss has some of the most extensive health care regulatory and legislative experience in the nation including developing policies around the marketing and sales of Medicare Advantage plans, as well as the development of the Physician Sunshine Act, the Patient Safety and Abuse Prevention Act and Medicare Modernization Act, VSP’s announcement said. Most recently, Swamidoss served as vice president of Dutko Worldwide.

"Cecil brings a unique understanding of how to work with both Republicans and Democrats in government," said Thomas Fessler, Chief Legal Officer and General Counsel of VSP Global. "Eyecare is an important component in health care reform. Cecil will focus on supporting good policy that is in the best interest of the nation's overall eye health and wellness needs."

Over the past few years, VSP has increased its focus and attention on Federal health care policy initiatives, having worked closely with Alston & Bird, a D.C. lobbying firm. VSP is bringing Swamidoss on to drive its Washington, D.C.-focused efforts.

"VSP has a long and proven track record of promoting healthy outcomes for both patients and the companies they work for. This is an important story to tell, and one that legislators in Washington, D.C. need to hear," added Swamidoss. "While the healthcare reform package has been passed and signed into law, there are still opportunities to protect the one-in-six Americans VSP covers with stand-alone vision care benefits. It's in the country's best interests that not-for-profit health insurers like VSP are included in the qualified exchanges."

Swamidoss received a Master of Public Health (M.P.H.) from George Washington University, and a law degree (J.D.) from Case Western Reserve University School of Law. He received his Bachelor's degree from University of Michigan.

Ego...The Two-Edged Sword

Ego is the proverbial two-edged sword.  Can’t live with it; can’t live without it.  But if ever I’ve seen something get in the way of someone’s success, myself included, its failure to understand and manage our ego. 

Ego is our inner voice; that voice in our head that speaks to us continually.  It’s our consciousness, which most immediately controls our thoughts and behaviors, and is most in touch with external reality.

Ego is both good and evil.  On the negative side, ego shuts us off from listening and learning.   Ego drives us to make decisions that are not in the best interest of our whole.  Ego causes us to react to stimuli in negative and sometimes very self-destructive ways.  Ego gets us into trouble.

On the softer side, we experience the negative of ego often in group settings.  You know this well, as I’m sure you’ve experienced a meeting participant who has something to say about everything.  It appears that these individuals are self-possessed to tell stories of their own success.  They rarely listen to the wisdom of others.  They’re often in a “one-up” mode; having to beat your story with theirs.  Peel back the layers of these ego-centric individuals and you’ll often find trouble.  But these individual’s ego won’t allow them to see it or to seek help from others.

Have you EVER walked into a team meeting and said to your team; “I don’t know how to solve this problem.”  Can you show your vulnerability to your employees; your friends; your family?  I believe that the ability to be open about challenges; to trust those around you by being vulnerable; is the true test of whether one’s ego is in the right place. 

It’s OK to have a strong ego; it’s doubtful that one can be truly successful without it.  But a leader must lead; and a manager must manage.  To do so, I believe that it’s equally important to show strength by showing that you need the help of others.

This concept is summarized for me in what’s become known as the Stockdale Paradox.  James Stockdale (Ross Perot’s VP running-mate) was the highest ranking POW during the Vietnam War.  His seven-year captivity was particularly brutal; he was locked in leg irons in the equivalent of a bath stall, where he was severely tortured.  To maintain a positive attitude towards his eventual release, Stockdale resolved:

Stockdale communicated confidence to his team that, eventually, they would be released.  At the same time, he communicated the reality of their situation.  It was that ability to balance resolve with reality that kept them alive. 

 Keep your ego in its proper place and use it sparingly.