Al Cleinman's Blog

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.

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?

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

The 800# Gorilla Strikes Again!

I share this with my readers simply as a reporter.  What follows is apparantly a letter from the American Optometric Society to their members, followed by press release on the same topic.

I make no comment...what follows speaks for itself.

________________________________________

Last October, in order to bring accurate information to our members about VSP’s new relationship with Costco, we sat down with VSP’s Chairman of the Board, Tim Jankowski, O.D., and its President Rob Lynch, for an interview. After the interview VSP tried to tell us what we could and could not do with the interview transcript. We rejected VSP’s demands. VSP threatened to sue the AOS if we did not do what they wanted. Again, we rejected VSP’s efforts to control the AOS. The AOS considers it critical that we are independent and do not allow outside organizations to influence our decisions. It distinguishes us from many other organizations.

With that in mind, the AOS told VSP that we had an obligation to our members and would not be told by VSP what we could and could not do. We published the transcript and allowed our members to read it. VSP responded with more threats from their lawyers. But the AOS again refused to permit VSP to tell us what we may and may not do. So, this past week VSP sued the AOS, two of its Board members (Pam Miller and Rich Driscoll) and its attorney, Craig Steinberg claiming that the VSP interview was recorded without permission, and that the transcript was wrongfully published. The Press Release regarding this sets forth the facts as we believe them to be. Please read it. A copy of the Press Release is included at the bottom of this news bulletin.

This past year VSP has initiated a program allowing some groups to obtain VSP covered eye care through Costco. VSP then began selling frames and glasses on-line, in direct competition with their network providers. Most recently VSP initiated a program where, if you sell enough Altair and Marchon frames you receive preferential listing when a VSP patient searches for VSP providers in their area. If you don’t sell enough VSP frames you are listed after the other doctors in your area. And now VSP has sued the AOS for providing our members with the most accurate information we could obtain about VSP – information provided to us from VSP itself.

If, like many others, you are tiring of VSP being the 1000 lb gorilla and want the AOS to stand up against VSP’s bullying tactics, we ask that you click here now and donate $100 or more to the AOS legal fund. We are confident that the VSP lawsuit has no merit and that this lawsuit is nothing more than VSP’s way to show everyone what will happen if you don’t do what they tell you – classic strong-arm bully tactics.

 We hope you’ll let us know with your donations to the AOS legal fund that you want the AOS to fight VSP and show them that we will not be intimidated

 VSP SUES THE AMERICAN OPTOMETRIC SOCIETY FOR ALLOWING AOS

MEMBERS TO READ TRANSCRIPT OF VSP INTERVIEW

AOS Says Lawsuit is Nothing More than VSP Bully Tactics

LOS ANGELES, CA, February 14, 2011 - Vision Service Plan (VSP) has filed a lawsuit against the American Optometric Society (AOS), several members of its Board of Directors, and its General Counsel, alleging that VSP was illegally and unknowingly taped during an interview on October 8 and that the AOS improperly published the transcript of that interview. The AOS adamantly denies the claims made by VSP and says it will vigorously defend itself against what it views as nothing more than VSP bullying tactics.

Says AOS President, Pamela Miller, OD, JD, of the lawsuit, “VSP's actions are a travesty and an embarrassment to what until recently was a respected pro-optometry organization. Not only was VSP told ahead of time that the meeting would be recorded and transcribed, not only was it openly recorded, and not only was VSP given a month to review and supplement the transcript before it was published, but the very purpose of the interview was so the AOS could disseminate VSP's explanation for its new relationship with Costco. And now VSP is unhappy that we did. The AOS believes the lawsuit is motivated by the AOS' refusal to be controlled by VSP. We have been honest to our word, and we will vigorously defend this baseless and frivolous lawsuit.”

The facts are largely undisputed. On September 5, 2010, Dr. Miller, wrote to VSP Chairman Tim Jankowski, O.D., inviting VSP to be interviewed by the AOS during Vision Expo to allow VSP to explain its newly announced relationship with Costco. In the letter and follow-up email Dr. Miller wrote, “We would record and then publish a transcript of that discussion so that our members have an opportunity to hear answers to their questions, directly from VSP.” In response, Dr. Jankowski replied that he was 99% sure he could do [the interview] on October 8. On September 13 Dr. Jankowski confirmed that he would be there along with VSP President Rob Lynch.

The interview took place in a Las Vegas meeting room, with several AOS Board members and AOS attorney, Craig Steinberg, OD, JD, present. Several other AOS board members participated via Skype. A recorder was placed on the table in front of Dr. Jankowski and Mr. Lynch during the nearly three hour interview. At no time did VSP indicate, or have they since indicated, that any part of the discussion was confidential.

On Saturday, December 17, the AOS provided a copy of the transcript to Dr. Jankowski and Mr. Lynch for their review. In response, VSP President Rob Lynch wrote, “We would ask that this not be posted until both Tim [Jankowski] and I give you written approval and have had a chance to review it. I will not be able to look at this before Monday afternoon.”

On December 19, VSP attorney Eric Johannessen, in an email to AOS attorney Craig Steinberg, wrote that, “Neither Rob [Lynch] nor Tim [Jankowski] understood that their conversation was being audio recorded until the end of the meeting.” Mr. Johannessen stated, however, that “... to be clear, we are not attempting to block the publication and dissemination of complete and accurate information to the AOS members. In fact, it is precisely VSP’s support of such efforts that led us to agree to meet in Las Vegas in the first place.” Mr. Johannessen continued, “We do not intend to rewrite history or inhibit publication. But, Rob [Lynch] and Tim [Jankowski] do intend to continue to withhold their respective personal consents to the audio recording until and unless we are provided a fair and reasonable opportunity to review the completeness and accuracy of the record.” Accordingly, the AOS did not make the transcript available to its members until January 13, 2011. At no time before or since has VSP offered any changes or supplement to the transcript.

Nonetheless, VSP filed a lawsuit claiming that the interview was recorded illegally because VSP did not know it would be recorded, and that VSP is suffering unspecified damages due to the transcript being made available to AOS members. VSP seeks damages, penalties, and an injunction against further publication of the transcript.

According to AOS attorney Craig Steinberg, “There is no merit to this lawsuit. Given the recent actions of VSP, which, among other things, is now selling frames on-line and is punishing VSP network doctors that do not sell a high enough volume of VSP owned frame lines, this latest misguided action by VSP appears to me to be nothing more than part of a larger VSP strategy to try and show it can still control the profession. Because the AOS resisted VSP’s effort to control it, VSP sued. I look forward to the Courts having the opportunity to examine the facts, and I am confident the AOS will be fully exonerated of any wrongdoing.”

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? 

_________________

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.

Actions Speak Louder than Words!

VSP continues it's arrogance, this time with the announcement that it has launched a “pilot” program with Costco Wholesale.  Yep...of all retailers...COSTCO!  Under this brilliant plan, employees of a number of employer groups (and current VSP clients) who are Costco warehouse club members can now use their VSP vision benefits at the vision centers in Costco’s stores.

What a great way to build a brand!

Perhaps, in all it's wisdom (after all, VSP knows all about private practice optometry...they have 27,000 optometrist "employees") VSP is simply setting up a comparative whereby the "brand" of the private practice optometrist is compared with that of Costco? 

VSP appears to be claiming that failing to have a retail option for it's members is causing competitive challenges.  I believe that this is simply rationalization for VSP to continue it's "globalization" plan and push for more, more, more.  After all, VSP's employees need higher salaries, new cars, more gourmet meals and, of course, to maintain their 15% of salary 401k contribution.  Also, VSP needs dough to expand around the world...because that will, of course, help it's providers who gave VSP life 50 years ago.  What is VSP's mission? 

Why can't VSP just be honest?  Why can't VSP leadership simply come out and tell everyone who they really are:

"We are driven by money and we are going to continue to do whatever we can to grow our business for the benefit of our employees; private practice optometrists be damned!" 

Sorry, VSP...this is just one more action that says it all.

Let's Make a Deal!

VSP Vision Care and Johnson & Johnson Vision Care’s Vistakon division recently announced that they are partnering to offer VSP “members” (your patients) what the two firms call “an enhanced additional rebate program,” which kicked off Oct. 1.

According to the announcement, members who purchase an annual supply of Acuvue CLs from one of VSP’s 27,000 network providers will receive an additional $25 rebate in addition to Vistakon’s current national rebate program. “This program will assist us in our continuing efforts to provide VSP members with access to high quality eyecare at more competitive prices,” said Gary Brooks, VSP Vision Care’s president.

Vistakon says it’s supporting the program with a marketing campaign “focusing on educating VSP members about the program and the value available from their eyecare professional,” the announcement said. 

 

Let’s think more seriously about what consumers’ value.  

There’s an old marketing saying, “in the absence of anything else, price prevails.” Is this not just one more example of lazy marketing that’s destroying our industry? Is not this program right up there with all the BOGO programs that have taught consumers that our industry is overpriced and they should expect 50%+ discounting? Does this not continue the branding message that our industry is at about the level of the proverbial used car dealer; if you don’t like the deal, wait a minute?  Why is it that, when studies show that price is the number six most important element in eyecare delivery (behind such items as doctor communication, knowledge of staff, etc.), all that our industry seems to be able to deliver is marketing based on price?  

I think Gary Brooks and his VSP team should focus their attention on delivering VSP providers with an increase in their reimbursements.  VSP “members” and the employers who fund their benefits already receive an outrageously amazing deal…pricing for eyecare and eyewear services at operating profit margins (based on our research) fully 10% points less than those of only five years ago. Indeed, in a recent study, we identified that our clients in California are being reimbursed by VSP at an average of  62% of their U&C exam fees.  Worse, their last reimbursement increase from VSP came, on average, three years ago (and amounted to pennies).  I wonder if VSP employees received their last raise three years ago.

How can VSP providers continue to invest in providing the very best care at these levels of reimbursement?

What is particularly offensive about this strategy is that VSP providers have no direct say in this matter.  VSP is touting that they have provided this as a “service” to their members (VSP Providers’ patients).  What about the 27,000 optometrists, many of whom, thanks to VSP's dominance in their practice, are effectively employed by VSP?  VSP employees receive annual raises and vote VSP in the top 100 of “The Best Places to Work.”  What about VSP’s other “employees?”  VSP providers are effectively commandeered to accept this rebate program and continue the slippery slope of brand destruction based on price, price, price. Vistakon and VSP, of course, will likely say that rebate programs cost the provider nothing. Certainly, rebates are better than direct discounts.  But it's time to start communicating at a level other than price. 

I ask whether these and other similar programs end up costing providers their most valued asset...their brand? 

Assuming that each VSP provider has five patients claim the rebate, that has the investment in this program at $3.375 million.  Add the cost of administration, and you're easily at the $4 million mark.

What might Vistakon do with $4 million that would better support the desired brand of the independent optometrist as well as that of Vistakon?  I encourage Vistakon and other industry marketers to more deeply consider the implications of price oriented marketing.  You can do better.

For an interesting and enlightening education on the impact of discounting, I encourage you to pick up Cheap: The High Cost of Discount Culture by Ellen Ruppel Shell, professor of science journalism at Boston University. 

Buy Your Own Darn Popcorn!

The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading pharmaceutical research and biotechnology companies.  PhRMA's members are "devoted to inventing medicines that allow patients to live longer, healthier, and more productive lives."

Among other activities, PhRMA establishes guidelines for its member's participation and sponsorship of educational activities and other events at industry meetings.  Of late, PhRMA has begun tightening restrictions on their members, as have certain states.  These restrictions complicate the member's involvement in such areas as supporting continuing education programs and sponsoring receptions and other events at meetings attended by doctors.  While some of these regulations are likely necessary, it seems that they've gone a bit too far.

At the recent American Optometric Association, the new PhRMA regs were very visible.  At one event graciously sponsored by Allergan, where the only food that was available was popcorn, there appeared an interesting sign.  Now I personally know the power of popcorn to change people's lives.  Popcorn is, after all, the reason that I got connected to the eyecare industry way back in 1970 (I'll save that story for another day).  But, in spite of popcorn's power to change the world, I'm having a hard time believing that Dr. Jones is going to change her prescribing habits for Restasis because someone bought her a box. Of course, perhaps this is just a safe way for an entire industry to drive profit improvement.  Popcorn is, after all, pretty darn expensive.    

PS:  My commentary is, in no way, directed at an individual company.  I am acutely aware of the frustration of individual PhRMA member company executives at these new regulations. Further, Cleinman Performance Partners is a significant producer of industry educational programs and our firm benefits from these new regulations.  All that said, I think that the regulators and company attorneys have taken there concerns over influence-peddling to the level of "ludicrous."

 

Enough is Enough!

Headline of an advertisement in an airline magazine:

"If you received a text message advertising the Stephen King book "Cell" in January of 2006, you could get a $175 cash payment from a class action settlement."

The advertisement went on to explain that the Plaintiffs claim that an unsolicited text message was sent on behalf of the Defendant, Simon & Schuster et al to cell phone users in 2006.  The Defendants deny the claim and the court did not decide which party was right so the parties are settling the lawsuit to avoid the burden, costs, risk and uncertainty of continuing the case.

Simon and Schuster have agreed to set up a $10 million fund and successful claimants (you have to prove that you received this text message in 2006) will receive the lesser of their pro-rata share of the fund or $175. The suit was brought by a group of attorneys who will receive...$2.725 million!

Now I pride myself on my tolerance of the world around me.  And I don't often make political statements.  But this kind of crap is cause for pause.  First, I'm a pretty organized guy.  As a writer/speaker, I have held on to some interesting records.  For instance, I still have every canceled check that I've ever written...from age 15.  It's these kinds of records that are and will one day be fodder for my books.  And I even hold on to my e-mail exchanges for months.  But, for the life of me, I can't figure out how I, or anyone else for that matter, would have a record of a text message from 2006.  Further, please explain the damage caused to me for receiving an unsolicited text message.

This is a shakedown!  By a group of attorneys.  Of you and me...the American Consumer.  You may think that this kind of stuff has no impact on those of us not involved.  But the reality is that Simon and Shuster will have to obtain the funds to handle this litigation from somewhere...and it can only come from the books and publications that you and I purchase.

This kind of shakedown occurs daily.  In the United States, anyone with a few dollars (and many with nothing, thanks to way too many attorneys) can sue anyone for anything.  And whether you're guilty or innocent doesn't matter...you have to defend yourself.  And the cost of that defense often exceeds the cost of writing a check out that's the equivalent of a pay-off.  And that's how attorneys get rich.  From gorging on the teat of a system that they've created.  What's wrong with this picture?

In Europe and most parts of the world, as I understand it, if you sue someone you'd better have a case because the prevailing party pays all legal fees.  This certainly slows down the volume of litigation and makes people think twice about bringing frivolous actions.  It's time to bring this method to the U.S.

In my opinion, the situation in our country is the result of a lack of accountability on the part of the legal profession.  It's the result of a "good ole boy" network of attorneys and lawmakers (36% of the House of Representatives and 54% of the Senate are lawyers) who both make the laws and then use them to their advantage.  This has apparently been the case for our entire history as a country, as Thomas Jefferson said, "If the present Congress errs in too much talking, how can it be otherwise in a body to which the people send one hundred and fifty lawyers, whose trade it is to question everything, yield nothing, and talk by the hour? "

I'm not suggesting that we shouldn't have the right to take action when wronged.  And certainly we shouldn't allow unsolicited texts.  What I am suggesting that our system is corrupt and broken. 

Of course, if you did receive this damaging text message way back in 2006 about Stephen King's novel, I can understand why you'd be upset and feel entitled to $175.  And, of course, if you're one of the attorneys who worked so hard to identify this societal wrong, I applaud your investment to ensure that society is protected from these kinds of ugly and damaging acts.  Imagine...an unsolicited text message...what's next?  Perhaps I'm going to sue XYZ for their ridiculous Father's Day commercial that came on last night right in the middle of my favorite TV show. It was, after all, UNSOLICITED!