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.
Yesterday VSP announced the launching of eyeconic.com, an online optical retail store. VSP members will be able to purchase contact lenses, prescription eyewear and sunwear. I don't know how all of you feel, but it sure scares me.
VSP has the labs, has the frames, and has the patients...what do they need us for, other than to write the prescriptions? The technology exists for virtual opticals, where customers can use webcams to model frames and fitting measurements can be made. Does this mean I can close my optical and reduce my staff?
VSP says that eyeconic.com is designed "to give providers a new channel for second pair, sunglass and contact lens sales". How does that work when the patient isn't here? We can't explain (and show) them the benefit of purchasing from us.
"When eyeconic.com refers patients to a VSP practice like yours for a free frame fitting and adjustment, you'll receive a professional support fee* ...*professional support fees will vary, typically 25%-35% of the suggested retail price". Now let me see how this works...eyeconic.com uses Marchon and Altair frames exclusively...VSP owns both companies...and who "suggests" the retail price? Is it anywhere close to my price.
I don't even want to think about the impact on contact lens sales...
Managed care and VSP in particularly have been squeezing us for years. I have been loyal to VSP throughout, long ago I eliminated all Luxotica products. For those of us in California, I have to thank VSP for opening up major medical to us. But now they have gone too far. They claim they will be our "online partner", I only see another way for this "not for profit" corporation to make more money. Don't get me wrong, there is nothing wrong with profit...when is some of it going to trickle our way in the form of increased reimbursement?
What can we do? For many of us dropping VSP ( and all managed care ) is not an option. We can however hit them in their pocketbook. Stop using the VSP lab, and stop purchasing Marchon and Altair products. For those who have only a small percentage of VSP patients, drop them entirely. Get creative with the local employers that offer VSP and offer your own plan. Tell VSP that you are not happy and you are not going to take it any more
Your thoughts?
Posted by: Tony Giannotti, O.D. | January 25, 2011 at 07:33 PM
Basically they are following the Medicaid model of providing a fitting fee for optometrists as opposed to allowing the optometrist to continue to operate a stand-alone retail business. And, they will be driving practices to lens and frame providers selected by them, often with financial benefits to VSP, as opposed to allowing providers to select the product that best fits the patient's prescribed need. Those who did not heed Al's warning a year ago need to start listening.....the choice is simple - YOU can change the game or let others change it for you. Business history shows that those who follow the latter path often disappear in time.
Posted by: Rich Heiland | January 25, 2011 at 09:26 AM