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#30: VSP Vision Care President, Jim McGrann (part 1 of 2)

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1. Why does VSP want its providers not to inform MetLife patients that their MetLife vision plan is actually a VSP Choice plan? I recall reading something to this affect in a VSP Newsletter.

2. Please explain how VSP satisfies the previous "Ratio and Proportion" thread because your previous answer failed to do so.

Paul Farkas said:
Jim McGrann is responding to some questions today with more answers to follow tomorrow.

4. Why do you pay doctors different exam fees in different states?

We have more than 30,000 VSP Network Doctors across the U.S. and one size does not fit all when it comes to reimbursement. VSP calculates provider reimbursement on an individual basis taking into account a variety of factors including geographical differences and provider U&C fees. Because of that, each provider receives their own VSP Assigned Fee Report with their individual VSP reimbursements.
Click to expand...

Mr. McGrann:

If VSP bases its reimbursement rates on the highlighted statement above, rates would be tremendously higher. Medicare is the most accurate means in determining prevailing charges, doctor's individual charges and cost of living.

"What the market will bear" in my opinion, means What is VSP willing to pay ODs in order to make windfall profits for itself, at the expense of ODs.

According to most Vision Care Plans, the market will bear a 10-year increase in wholesale frame (eg. Marchon, Luxottica) prices, laboratory (VSP, Essilor) prices and OfficeMate Annual software maintenence increases. However, a doctor's professional salary must be stagnant?
Compare VSP's 10-yr profit margins against VSP private practice ODS and there is your proof. Don't forget to include optical laboratory and frame mfr profits.

Your answer is Spot-Off to question #4 because it fails to support the previous Ratio and Proportions thread. If VSP's reimbursement fee schedule was truly representative to the heartbeat of American ODs, ratios would be proportionate (50/50) among the United States.

I would like to see VSP reimburse ODs at CMS (Medicare) fees while being competitive in the area of frame & laboratory prices. Market conditions cannot be an excuse for an optometrist receiving less money for professional services than my wife's hairdresser.

Sincerely,
Stephen G. Hlis, O.D.
 
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Steven Nelson said:
No, and the problem is much bigger than that. This isn't just the way they do business, this is a CHANGE in the way they do business and that's a big sticking point. It's not like this is a new entity that people can take or leave, but rather as you allude to, they have to take it or lose a significant portion of their patient base built on the terms of the OLD business model.

It's like being married for 20 years and building a life and the spouse decides to take up cheating on you. Yes, you CAN divorce them (and rightly should), but it's so much more complicated than just walking out the door and the presence of that choice to divorce doesn't mean the cheating spouse is somehow excused in their behavior because the relationship has already been established.

If this contract change and business model was something only NEW practitioners had to choose, that would be different, but that's not the way it is.
Click to expand...

That's a good point. Actually now that many practices are dependent of VSP for survival I am somewhat surprised VSP has not drastically reduced reimbursement rates to doctors. What if VSP decides starting tomorrow reduced reimburse rates for all exams to $35 to $40 and cap a dispensing fee to $30 and lower out of pocket payments for frames that are over the allowed amount like some other VCP already do? How many providers would choose to become non VSP providers? If it meant closing offices I think most VSP providers would remain in the network. I don't think I'm giving VSP any new ideas. I would think they already considered doing this but chose not to do so at least for now.
 
One last time -- get off the soapbox in this thread

I'll ask one more time, nicely. Then i'm going to get ornery. (will i turn green like bruce banner? who knows!)

This thread is the place where people can ask questions. Actual, substantive questions. It is NOT the place to inject opinion, make commentary, accusation, grind axes, etc. There are other threads for this.

Thank you
The Management.
 
Jim Mc Grann President of VSP Vision Care answers additional questions

Questions italicized and answers highlighted


Why don’t you accept ICD9 codes other than refractive codes? Why don’t you accept the CPT definitions of 92 and 99 codes?

We do accept ICD9 codes but because our well vision benefit covers routine vs. medical eyecare, one of the ICD9 codes needs to be routine/refractive. Our guidelines are consistent with the 92 code definitions but applied to routine, so the treatment plan for someone with no medical issues would be “return next year.


”What would be required for VSP to start using a-codes rather than improperly using 92 codes?


Do you mean “S” codes? If so, we began accepting S codes a few years ago. Many doctors prefer to use them versus the 92 codes and you are welcome to use either.


Why are VSP offices forced to overpay for lenses and not allowed to order or edge from stock?


For doctors who have made the investment in finishing equipment, they can take advantage of the VSP In-Office Finishing program to finish certain single-vision lenses in their office. Our goal for the program is to ensure high-quality materials for VSP patients while creating opportunities for financial benefits for the practice.

To support that, the pricing for stock lenses from the IOF Fulfillment Center is competitive with other U.S. labs, and VSP Providers receive higher reimbursements through the In-Office Finishing Program than with traditional orders through a VSP contract lab.


What is VSP doing to encourage patients to purchase their contact lenses from the ODs?


VSP works directly with a number of the largest contact lens manufactures to provide exclusive rebates and savings for VSP members when they purchase from their VSP doctor.


Why does VSP compete directly against us online for eyeglasses and contact lenses?


Onlineeyewear is growing like never before and it is not something that will go away. VSP is continually working towards solutions that address current and future consumer demands by providing online options for those patients who are looking for it. We are the only company who is actively creating solutions that will not only keep patients connected to their eye doctor, but also provides a payment to their VSP eye doctor.

Again,we are constantly looking at ways to create financial benefits fordoctors in areas that they haven’t had to compete in before.


What can VSP do to reward private O.D.s who don’t accept the low ball competition like EyeMed, Davis, Spectera?

First of all, thank you. This is one of the critical areas that will help us help each other. Panel saturation has been a huge challenge as we try to distinguish the VSP network from other vision plans who in addition to matching our network, also offer a huge retail footprint.

To help with this, we are constantly looking for new opportunities to create financial benefits for our network providers, like what we are doing with Premier. This allows us to differentiate those practices and increase their visibility to VSP members, increase their revenue through our products and services and provide support tools like marketing services and exclusive industry partner offerings.


Why doesn’t VSP market the quality of the private practice O.D.directly to the public?

We do! VSP promotes the VSP network doctors through every available channel to our more than 60 million VSP members. As I discussed during the interview, even as we have needed to add the affiliate program to satisfy specific clients’ needs/requests for choice,only approximately 1% of claims are with affiliates compared to total claims.
 
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new question

one last time (before I have to hulk-out on everyone) -- this isn't the thread for commentary, it is for questions.


I had to move another post, but i've kept the question part of it here:

Can VSP develop an EXCLUSIVE PROVIDER AGREEMENT whereby of the doctor agrees to accept VSP as their exclusive vision care plan (not medical), VSP will pay them in accord with an EXCLUSIVE PROVIDER FEE SCHEDULE that is, say, double the profession fee reimbursement rates and 20% lower lab charges? Is there anything that would prevent VSP from entering into these exclusive provider agreements with providers willing to accept them?
Click to expand...

Interesting question! (is it even legal?)
 
AdminWolf said:
one last time (before I have to hulk-out on everyone) -- this isn't the thread for commentary, it is for questions.


I had to move another post, but i've kept the question part of it here:

Interesting question! (is it even legal?)
Click to expand...

I am done contributing. I don't like being censored or edited. I don't like the context of my questions being removed or changed.

The idea that this is just questions and answers, and no discussion is permitted makes it a pointless useless thread.
 
Purpose of this ODwire.org Radio/Podcast

Craig Steinberg said:
I am done contributing. I don't like being censored or edited. I don't like the context of my questions being removed or changed.

The idea that this is just questions and answers, and no discussion is permitted makes it a pointless useless thread.
Click to expand...

Our radio interviews are designed to allow controversial topics and individuals to offer their point of view. We have to hope the interview will create some well phrased targeted questions.

This topic is not meant as a soap box offering OD opinions. We have a specific topic to allow for this free for all..http://www.odwire.org/forum/threads/78389-VSP-interview

Members can listen, read and decide for themselves if the speakers point of view makes sense.

Jim Mc Grann is putting himself out there. He deserves respect for making the effort. Beating him up serves no purpose other than convince other senior managers to avoid ODwire.org. Is that in the best interest of our membership?

I have just been informed that Jim will continue answering questions for the balance of this week. You are welcome to submit either using your name or if more comfortable anonymously. Please no venting.

Save tirades for the other topic underway...
http://www.odwire.org/forum/threads/78389-VSP-interview

Thank you for your participation.
 
Paul Farkas said:
Our radio interviews are designed to allow controversial topics and individuals to offer their point of view. We have to hope the interview will create some well phrased targeted questions.

This topic is not meant as a soap box offering OD opinions. We have a specific topic to allow for this free for all..http://www.odwire.org/forum/threads/78389-VSP-interview

Members can listen, read and decide for themselves if the speakers point of view makes sense.

Jim Mc Grann is putting himself out there. He deserves respect for making the effort. Beating him up serves no purpose other than convince other senior managers to avoid ODwire.org. Is that in the best interest of our membership?

I have just been informed that Jim will continue answering questions for the balance of this week. You are welcome to submit either using your name or if more comfortable anonymously. Please no venting.

Save tirades for the other topic underway...
http://www.odwire.org/forum/threads/78389-VSP-interview

Thank you for your participation.
Click to expand...

I would like to add that this NOT censorship -- we have not deleted anyone's posts. We have moved them wholly intact to that other thread Paul mentioned above.

As Paul said, we want this thread to be for people who have taken the time to sit through the interview, and now have additional questions for Jim.

If you feel that you are somehow being censored, we can always offer you equal time with an ODwire.org Radio show in the future (we're like the old TV networks -- the Fairness Doctrine is intact!)
 
Stephen G. Hlis said:
1. Why does VSP want its providers not to inform MetLife patients that their MetLife vision plan is actually a VSP Choice plan? I recall reading something to this affect in a VSP Newsletter.

2. Please explain how VSP satisfies the previous "Ratio and Proportion" thread because your previous answer failed to do so.

Mr. McGrann:

If VSP bases its reimbursement rates on the highlighted statement above, rates would be tremendously higher. Medicare is the most accurate means in determining prevailing charges, doctor's individual charges and cost of living.

"What the market will bear" in my opinion, means What is VSP willing to pay ODs in order to make windfall profits for itself, at the expense of ODs.

According to most Vision Care Plans, the market will bear a 10-year increase in wholesale frame (eg. Marchon, Luxottica) prices, laboratory (VSP, Essilor) prices and OfficeMate Annual software maintenence increases. However, a doctor's professional salary must be stagnant?
Compare VSP's 10-yr profit margins against VSP private practice ODS and there is your proof. Don't forget to include optical laboratory and frame mfr profits.

Your answer is Spot-Off to question #4 because it fails to support the previous Ratio and Proportions thread. If VSP's reimbursement fee schedule was truly representative to the heartbeat of American ODs, ratios would be proportionate (50/50) among the United States.

I would like to see VSP reimburse ODs at CMS (Medicare) fees while being competitive in the area of frame & laboratory prices. Market conditions cannot be an excuse for an optometrist receiving less money for professional services than my wife's hairdresser.

Sincerely,
Stephen G. Hlis, O.D.
Click to expand...

????
 
Paul Farkas said:
Our radio interviews are designed to allow controversial topics and individuals to offer their point of view. We have to hope the interview will create some well phrased targeted questions.

This topic is not meant as a soap box offering OD opinions. We have a specific topic to allow for this free for all..http://www.odwire.org/forum/threads/78389-VSP-interview

Members can listen, read and decide for themselves if the speakers point of view makes sense.

Jim Mc Grann is putting himself out there. He deserves respect for making the effort. Beating him up serves no purpose other than convince other senior managers to avoid ODwire.org. Is that in the best interest of our membership?

I have just been informed that Jim will continue answering questions for the balance of this week. You are welcome to submit either using your name or if more comfortable anonymously. Please no venting.

Save tirades for the other topic underway...
http://www.odwire.org/forum/threads/78389-VSP-interview

Thank you for your participation.
Click to expand...

Paul,

If Mr. Mc Grann wants to hear from ODs, he needs to hear ODs response to his answers. I see nothing wrong with what craig said. Now you are saying if we want discussion we should listen to the radio show and not respond in any meaningful way on ODwire.

So we should just ask and get answers. No open ended discussion? Just closed ended questions and then we have to keep shut after getting the answers.

If Mr. Mc Grann honestly wants to hear from ODs, he must be prepared to hear all of it. I am sure he is a big boy and can handle a frank discussion with ODs.

He has to know that many ODs are unhappy with VSP and that is why I assume he wants to hear from ODs.
 
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And your question is?

Mark Horwitz said:
Paul,

If Mr. Mc Grann wants to hear from ODs, he needs to hear ODs response to his answers. I see nothing wrong with what craig said. Now you are saying if we want discussion we should listen to the radio show and not respond in any meaningful way on ODwire.

So we should just ask and get answers. No open ended discussion? Just closed ended questions and then we have to keep shut after getting the answers.

If Mr. Mc Grann honestly wants to hear from ODs, he must be prepared to hear all of it. I am sure he is a big boy and can handle a frank discussion with ODs.

He has to know that many ODs are unhappy with VSP and that is why I assume he wants to hear from ODs.

.
Click to expand...

You offered your opinion. We can agree to disagree.

The next ODwire.org Radio/Podcast features someone who takes plenty of abuse from ODs and yet is willing to share information.

The topic under the Radio show is to pose questions and receive an answer from the individual interviewed, not to debate.
 
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Paul Farkas said:
You offered your opinion. We can agree to disagree.

The next ODwire.org Radio/Podcast features someone who takes plenty of abuse from ODs and yet is willing to share information.

The topic under the Radio show is to pose questions and receive an answer from the individual interviewed, not to debate.
Click to expand...

Paul,

You took the intent of my post totally out of context and missed my point.
 
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I have a question

Is it time for a raise?
This was lead line on an email I just received from VSP.

What I found most ironic is that the lead paragraph ended with this statement:
....loyalty deserves reward.

Editor's note: And your question is????
 
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Alan David said:
Is it time for a raise?
This was lead line on an email I just received from VSP.

What I found most ironic is that the lead paragraph ended with this statement:
....loyalty deserves reward.

Editor's note: And your question is????
Click to expand...

I forgot to ask Mr. McGrann what VSP compensates him for his salary, including health insurance benefits, retirement plan etc.

Editor's note: Any reason to be rude to our guest? Are posters willing to share their financial information publicly?
 
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Stephen G. Hlis said:
I forgot to ask Mr. McGrann what VSP compensates him for his salary, including health insurance benefits, retirement plan etc.

Editor's note: Any reason to be rude to our guest? Are posters willing to share their financial information publicly?
Click to expand...

VSP hides behind the wall of being a "non-profit" corporation. Virtually all companies of the size and nature of VSP have all those figures made public. VSP's "non-profit" status is a complete farce today. They lost their tax-exempt status because they run a business for profit. I wonder if they have violated their charter set forth in their Articles and can even lawfully continue to exist?

In any event, asking him that question is simply asking him to disclose what the heads of nearly every major health plan must routinely disclose. I'm not sure how relevant the question is, but it's not rude.
 
Craig Steinberg said:
VSP hides behind the wall of being a "non-profit" corporation. Virtually all companies of the size and nature of VSP have all those figures made public. VSP's "non-profit" status is a complete farce today. They lost their tax-exempt status because they run a business for profit. I wonder if they have violated their charter set forth in their Articles and can even lawfully continue to exist?

In any event, asking him that question is simply asking him to disclose what the heads of nearly every major health plan must routinely disclose. I'm not sure how relevant the question is, but it's not rude.
Click to expand...

I think VSP wants to have it both ways. They want to say they have a multi billion dollar business so the ceo and other higher ups deserve high salaries of say multiple six figure salaries or possibly in the seven figure salaries for the ceo commesurate with other companies with similar revenue and profit. But sinceVSP is a non profit non public company they don't have to disclose their salaries I believe.
 
Craig Steinberg said:
VSP hides behind the wall of being a "non-profit" corporation. Virtually all companies of the size and nature of VSP have all those figures made public. VSP's "non-profit" status is a complete farce today. They lost their tax-exempt status because they run a business for profit. I wonder if they have violated their charter set forth in their Articles and can even lawfully continue to exist?

In any event, asking him that question is simply asking him to disclose what the heads of nearly every major health plan must routinely disclose. I'm not sure how relevant the question is, but it's not rude.
Click to expand...

Any remote chance of dismantling VSP by finding they have indeed violated their charter and starting a VCP again founded by optometrists for optometrists?
 
Stephen G. Hlis said:
I forgot to ask Mr. McGrann what VSP compensates him for his salary, including health insurance benefits, retirement plan etc.

Editor's note: Any reason to be rude to our guest? Are posters willing to share their financial information publicly?
Click to expand...

Paul,

I have shared my financial information countless times among my colleagues on previous ODwire threads and am willing to do it again should Mr.McGann decide to share his financials. I believe it is an appropriate subject since VSP is using a double standard.

VSP is very proud of its employee retirement plan which has been around since 1972. The average insurance employee makes about $63,000/yr.

Mr. McGann, what has been your annual compensation while working at VSP?

STEPHEN G. HLIS, OD
 
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Don't expect an answer to certain questions

Stephen G. Hlis said:
Paul,

I have shared my financial information countless times among my colleagues on previous ODwire threads and am willing to do it again should Mr.McGann decide to share his financials. I believe it is an appropriate subject since VSP is using a double standard.

VSP is very proud of its employee retirement plan which has been around since 1972. The average insurance employee makes about $63,000/yr.

Mr. McGann, what has been your annual compensation while working at VSP?

STEPHEN G. HLIS, OD
Click to expand...

Asking questions that will not be answered to prove a point, in my opinion is counter productive to the spirit of this Radio interview topic.

Those who wish to preach about the evils of VSP while simultaneously sign agreements with VSP to abide by their rules have a topic underway in the State of Optometry forum...
http://www.odwire.org/forum/threads/78389-VSP-interview

All the questions previous asked seems to have been asked.

Jim Mc Grann has agreed to a Part II interview (I hope :eek:) addressing future VSP initiatives including clarification of their premier plan.

This topic is closed. The ODwire.org Radio/Podcast remains available.

Continue the conversation at...
http://www.odwire.org/forum/threads/78389-VSP-interview
 
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