Al Cleinman's Blog

At What Stage is VSP?

Recent articles in the eyecare press have reported that the American Optometric Association (AOA) ruffled the feathers of VSP and the National Association of Vision Care Plans by suggesting to a senator instrumental in the currrent health care reform debate that stand-alone vision plans are aiming to "turn back the clock by continuing to segment vision from eye health," and said such plans are "seeking to impose misguided limits on the care that our patients—especially children—receive."

Logically, reaction to those statements was aggressive.  After all, it doesn't take a rocket-scientist to recognize that, with optometry's increased scope of practice and their inclusion in most medical plans, such stand-alone plans may have run the course of their usefulness to anyone but the plans promotors and owners.

A follow-on joint statement issued by the AOA and VSP after their recent meeting said "both organizations are committed to expanded access to eyecare," and that both "recognize the importance of including provider non-discrimination provisions that will safeguard patient access to optometric care in any health-care bill."  AOA president Randy Brooks, O.D. said some statements in the earlier AOA/AAO letter may have been misinterpreted.  Brooks said the AOA would "never do anything to compromise existing vision care," noting "we're not against stand-alone vision plans."

Logically, reaction to the AOA's statement by the the Managed Vision Care industry was strong.  With VSP and their breathren being major contributors to various association activities, it's logical that they used their political clout to soften the AOA's position.  Afterall, money talks.

Yes, consider whether it really matters whether the AOA is against stand-alone plans or not.  Are Providers, who represent the key ingredient of both the AOA's and VSP's success, fed up with low reimbursments and arrogant unilateral actions by the likes of VSP?  Are Providers at the stage where they are sick and tired and near the point where they're not going to take it anymore?  What's really going on here?

Perhaps there's a roadmap for what's been unfolding for VSP over the past number of years.  I find it in Jim Collins' latest volume of management thinking, How the Mighty Fall ... and Why Some Companies Never Give In.  This great read begins with Collins recalling the advice of his mentor, Stanford professor Bill Lazier: "Don't try to come up with the right answers; focus on coming up with good questions." And certainly that describes Collins' achievement in this book. The question of why leading companies, seemingly in possession of every competitive advantage, so often manage to blow it is surely a good one.

Collins provides the five stages of a company's demise:

1. Hubris born of success
2. Undisciplined pursuit of more
3. Denial of risk and peril
4. Grasping for salvation
5. Capitulation to irrelevance or death

I've often said that the questions are far more important than the answers.  Have you read the book?

Doctors Say "I Quit"

How sad it is that the present state of medicine is forcing doctors to hang up their stethoscopes to take less stressful and more economically viable jobs.  The article below is an excellent review of our current state of affairs.  While I don't have stats (yet), medicine is fast landing in the same soup (or vice versa) as that of education; where more than 50% of all salaries go to administration. 

Obama's plans address some of these issues...but with questionable effectiveness...and significant reform will likely never see the light of day.  There are too many special interests who suckle at the teat of healthcare (insurance, lawyers and yes, politicians, etc.) and don't desire change. 

We are a country in crisis.  We have 535 elected representatives (who earn a pension and health care coverage for life after just four years of "employment") making decisions for 350 million of us.  Those individuals are in the business of debate...not action.  The system is broke and, not to be cynical, there appears no effective solution in sight.  What are we to do? 

Doctors Call It Quits

How American Healthcare Killed My Father

While the bureaucrats debate how to "fix" our heathcare system, the attached article provides some very interesting insight into what's wrong and what the "fix" might be.  Enjoy!

Download Howamericanhealthcarekilledmyfather.

Look Both Ways Before Crossing

Well, the reality is that I did. 

Sorry for the delay in posts.  On Tuesday morning, August 4th, I was struck by a car while in a crosswalk near my office.  First...I'm OK.  Apparantly, I did a flip and landed on the hood of the car, then proceded to slither to the pavement.  The good news is that, while I was unconscious for about 30 minutes or so, I'm OK.  I've got lacerations over both eyes and some nasty bruises and a broken toe, but I'll heal.  Beats the alternative. 

The bad news is that I received mediocre scores on the flip and am out of medal contention. 

So, sorry for the delay in posts.  I'm recuperating nicely but don't have the brain for anything too deep.  We'll talk soon.

The Times They Are a Changin'

The world is changing...fast.  It's also shrinking...fast.  Perhaps you've already seen the attached video, but it bears another view.  This time, when you view this amazing presentation, consider the implications on you and your business. 

http://www.youtube.com/watch?v=cL9Wu2kWwSY

Does this mean that an eye exam will be obtained at a kiosk in the mall (already happening...the technology exists)?  Does this mean that you won't be able to hold onto great staff...even if you wanted?  What's the future hold and what are you going to do to hold your place in it? 

As Bob Dylan said many years ago:

The line it is drawn
The curse it is cast
The slow one now
Will later be fast
As the present now
Will later be past
The order is
Rapidly fadin'.
And the first one now
Will later be last
For the times they are a-changin'.

Turn Off Your TV and Read a Good Book!

We are more and more becoming a society that blows in the wind of the media.  How sad.

While I certainly don't want to discount that sickness and death are a serious thing, this Swine Flu (oops...sorry Pork Institute...I mean H1N1 flu) mayhem appears to be a PR event underwritten by the folks who sell hand-sanitizer and face-masks (Johnson and Johnson).  2 people have died in the U.S. from this virus!  Frankly, and with all due respect for those affected, BIG DEAL!  Each flu season is unique, but it is estimated that, on average, approximately 5% to 20% of U.S. residents get the flu EVERY YEAR, and more than 200,000 people are hospitalized for flu-related complications each year. About 36,000 Americans die on average per year from the complications of flu.

I find it interesting that this Swine Flu thing started to hit the media in early March.  Coincidentally, J&J stock hit its low in early March.  Since then, those who own the stock have realized about a $10 a share increase.  While the stock isn't quite back to where it was last year...more of this Swine Flu mayhem will get it there. 

Think about it!  This crap is promoted to sell newspapers and fill air time.  This one was likely released by some PR firm hired by a firm who was hired by a firm who was hired by Johnson and Johnson.  The forth estate loves to whip society into a frenzy and with everyone so wired, it works.   

Let's stop worrying and get back to life. 

Wal-Mart Slashes Prices on Contacts and Children's Eyewear

This from Vision Monday:

Wal-Mart Launches New Programs to Boost Value for Contact Lenses and Children’s Eyewear

BENTONVILLE, Ark.—Wal-Mart Stores (NYSE: WMT) took a bold step today in putting its vision business into the spotlight by announcing the launch of new, nationwide programs which slash prices on contact lenses and children’s eyeglasses and simplify the purchasing process.

The mass merchandise giant said its new program with 1-800 Contacts will save customers as much as 12 percent to 50 percent on the costs of a yearly supply of contact lenses. Additionally, Walmart is offering frame-and-lens packages for children age 18 or under for as low as $39.

At a press conference with national media this morning, Walmart executives touted the move as a further step in the company’s efforts to “provide greater value, more convenience and better healthcare for consumers.”

“Working with our suppliers and 1-800 Contacts, we have found a way to help our contact lens customers spend less and save more,” said Dr. John Agwunobi, senior vice president and president of Walmart’s Health and Wellness division. “By offering greater accessibility and affordability, we believe the customer savings could reach $400 million during the first three years of this alliance.”

Agwunobi said the roll-out of the contact lens program follows a successful pilot program which involved about 1,000 Walmart Vision Centers. The program, along with the youth eyewear offering, will be available in 1,500 stores by the end of the month and will be expanded to 3,000 locations.

Walmart and 1-800 Contacts estimate that customers "have already saved more than $25 million since it began rolling out the program nationwide in January.”

“At a time when every penny counts, contact lens wearers want to save money and get brand name contact lenses conveniently,” said Jonathan Coon, chief executive officer at 1-800 Contacts. “We are proud to be working with Walmart. Together, we have eliminated the hassle of mail-in rebates and replaced them with instant savings at the register. Our alliance improves access and lowers costs –enabling contact lens wearers to replace their lenses more frequently and live healthier lives.”

The new program, the outgrowth of an alliance originally announced by the two companies last year, enables Walmart customers to purchase their contact lenses either at Wal-Mart stores, through the Web or by phone. 1-800 Contacts is providing order fulfillment and customer support.

Jeff McAllister, Walmart’s senior vice president for health and wellness, said that customers who participate in the contact lens program will be examined by independent eyecare practitioners affiliated with Walmart.

McAllister noted that the program is designed so that consumers buy the appropriate amount of contact lenses instead of “stretching” the wearing period of the lenses beyond what is recommended by the manufacturer. He added that customers will be able to purchase multiple boxes of contact lenses and an annual supply. The program includes popular brands such as Johnson & Johnson Vision Care’s Acuvue Oasys, with prices ranging from $19 to $29 per box, McAllister said.

In the youth eyewear program, designed to “help families during tough economic times," Walmart Vision Center customers can choose among 18 different frame styles and colors for $10. Executives did not detail which frames or brands would be included in the $10 program. Three different single-vision, scratch-resistant polycarbonate lens options are being offered, starting at $29 and ranging to $49 with Platinum anti-reflective, smudge resistant coating and $79 for Transitions photochromic lenses with Platinum coating. Walmart will provide a one-year guaranteed free replacement if the glasses are damaged.

In addition to the special $10 offering youth frames, Walmart cited other popular frame brands that are available at its everyday low prices. The brands mentioned include Baby Phat, Phat Farm, Body Glove, Nickelodeon, Hanna Montana, Turbo Flex, Umbro and Oscar de la Renta. This summer, Walmart will add the Daisy Fuentes brand frames to the mix, its announcement said.

Said Agwunobi. “This offering draws directly from our commitment to help families save money so they can live better.”

Our Crisis of Credit - Defined

Want to know how our current economic crisis came about, follow this link to a very interesting video that explains it all. 

http://lifehacker.com/5157548/remains-of-the-day

This is NOT 1929 Revisited!

It's easy to get caught up in the doom and gloom promulgated by the press.  While certainly we are operating in unprecidented times, it's important to place things in perspective.  I came across this chart which may help you understand where we really are.  There's no doubt that this mess will be with us for a long time.  And short of a major modification in entitlement programs; a dramatic shrinking of government; and a major overhaul of our tax system, our grandchildren's grandchildren will be inheriting quite a debt.  But we're no where near a depression and those of my readers who move forward with confidence will be rewarded.  

It's times like these that I refer to what's become known a the Stockdale Paradox (Admiral Stockdale was the highest ranking POW of the Vietnam era, incarcerated and tortured for seven years), which is  paraphrased below from Jim Collins, author of Good to Great. 

"On the one hand, stoically accept the brutal facts of reality. On the other hand, maintain an unwavering faith in the endgame, and a commitment to prevail as a great company despite the brutal facts.

In a nutshell...act carefully, but keep the faith and keep on truckin'.