By Stuart J. Thomas, OD,
and Ellen Byrum-Goad, LDO
SYNOPSIS
Managed care promotional programs offer visibility and cost savings for participants. Here is one practice’s experience.
ACTION POINTS
RECOGNIZE ENHANCED BENEFITS: In 2013, VSP Global announced its new Premier program.
CRUNCH NUMBERS ON SAVINGS: For instance, calculate savings on Unity Single Vision Lenses ordered through VSPOne lab. Savings to your practice could be $25 per pair.
TRAIN STAFF TO MEET PROGRAM REQUIREMENTS: Staff has to be educated and trained to ensure your optical is aware of the need to pair each VSP claim with a Marchon/Altair frame and to order Unity branded product from a VSPOne lab to complete the order.
One key to increased optical profitabilityis taking advantage of offers from industry partners. In 2013, VSP Global announced its new Premier program. To participate in the program, your practice has to meet a sales goal of $25,000 annually in business in Altair/Marchon frames – which equates to about six or seven frames from that manufacturer sold per week. Once you reach that level of sales, and you are designated a Premier Practice, you get cost-saving benefits from VSP that enhances profitability. You also are listed by VSP as a “Premier Practice” on the VSP site patients use to find a doctor. Here is a summary of the benefits to be gained from this program, along with an example from our practice of how these benefits enhance profits in our dispensary.
Our first priority as eyecare providers is to offer patients the best products for their eye health and vision needs. It is important to note that our practice hasn’t had to sacrifice prescribing quality products to patients. Meeting our requirements for this program simply means prescribing the same products we would have prescribed anyway.
Enhanced Benefits
• More patients due to the best online visibility on vsp.com, with practices that meet the requirements labeled as Premier Practices. It is estimated that there will be 10 million doctor searches on vsp.com in 2014, which could help drive more patients to your practice.
• More revenue with $10 more for each Marchon or Altair frame a practice sells to a VSP patient. And this adds up to more per patient regardless if they only buy what is covered or choose to spend extra.
• More savings with discounts on new Marchon collections to brighten your eyewear gallery. We took advantage of this program to add the Ferragamo line and they are literally flying off the shelf.
• More support with tools like “My Marketing Team,” a suite of marketing services and access to an annual exclusive annual Premier meeting.
Example of Enhanced Profitability as a Premier Practice
Unity Single Vision Lenses ordered through VSPOne lab.
Single Vision Lenses (up to additional $15 per pair)
On Signature & Choice Plan claims, order Unity digital lenses and get:
• $10 for adding Unity Performance Coating
• $ 5 for adding Transitions or Photofusion.
How we do what we need to do to make our Premier target:
1) Patient has VSP – we help them select a Marchon Frame (VSP pays additional $10)
2) Single Vision Lenses – we bundle the fees.
Signature Plan Examples
Unity SVx lenses – Hi Index
$89 for Digital/1.67 VSP Pays – $19
$75 for Unity Elite ARC VSP Pays – $ 23 + Unity Pays $10
Patient Total= $164 Practice Gets: $52
Add Trans + $62 VSP pays $20 + Unity pays $5
Patient Total = $226 Total to Practice = $77
Unity SVx lenses – Polycarbonate or Plastic
$33 for Digital/Either Material VSP Pays $14
$75 for Unity Elite ARC VSP Pays $23 + Unity Pays $10
Patient Total = $108 Practice Gets: $47
Add Trans + 62 VSP pays $20 + Unity pays $5
Patient Total = $170 Total to Practice = $ 72
ROI
We just made an additional $25 per job and we provided the patient with their best vision with premium product. Win-win!
EDUCATE STAFF
By highlighting the Marchon/Altair brands, we have differentiated ourselves from the big box opticals. Note that staff has to be educated and trained to ensure your optical is aware of the need to pair each VSP claim with a Marchon/Altair frame and to order Unity branded product from a VSPOne lab to complete the order. Getting the entire office involved in the program will help maximize the revenue opportunities with every patient.
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Stuart J. Thomas, OD, is the owner of Thomas Eye Center in Athens, Ga. Ellen Byrum-Goad, LDO, is practice manager. To contact: Ellen.Goad@thomaseyecenter.com
