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Thread: Walmart and Davis Vision

  1. #1
    What's up? drk's Avatar
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    Walmart and Davis Vision

    News to me, per Vision Monday:

    "...Davis has broadened it's reach through a new agreement with Wal-Mart Stores, underwhich all of the more than 2,000 Wal-Mart Vision centers...joined Davis Vision's provider network as of June 1."

    I'm posting this as more evidence that there will be a continuing trend in this direction:

    VSP-private opticals
    Cole/Eyemed-Sears, LC, et al
    Davis-Walmart.

    Am I missing others?

    I also noted that Davis Vision has it's own labs.

    This really says that, at least at the retail level, VSP is the independent's friend, no?

  2. #2
    Underemployed Genius Jacqui's Avatar
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    Quote Originally Posted by drk

    This really says that, at least at the retail level, VSP is the independent's friend, no?

    Wish someone would help the independent wholsaler.

  3. #3
    Ophthalmic Optician
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    DRK:

    DON'T BUY IT!

    Friends refer people to my office. They don't walk in with their arm around the friend and say "Hey Johns, I'm bringing my friend in here, but because I did, you're only allowed to make X amount of dollars off of him. Oh, and you have to have the glasses made by my lab. Oh, and I'm going to keep a small % of the sale, on top of what I already took. Oh, and I'm also going to audit your files to make sure I got all the money I could from the other friends I refered to you." Besides that, the friend they refered to me has been coming to my practice for the last 14 years, and now I'll make a fraction of what I did!

    No, VSP might not be what you'd consider an enemy, but rather than think of them as a "friend", I'd say they might be the lesser of 3 evils. (And no, they are not a necessary evil, because no 3rd party is neccesary.)

  4. #4
    Master OptiBoarder LENNY's Avatar
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    I also heard that the contract that Davis has with WM is different from the contracts that they have with independents!

    This makes patients go to walmarts instead of private doctors.

    Can anyone confirm that?:drop:

  5. #5
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    Post Davis' deal with the chains

    Quote Originally Posted by LENNY
    I also heard that the contract that Davis has with WM is different from the contracts that they have with independents!

    This makes patients go to walmarts instead of private doctors.

    Can anyone confirm that?:drop:
    I have been told that Davis has entered into some deals with the chains that are substantially different than those executed with independents. Perhaps the most significant difference related to me is that while independents must use a Davis lab, the chains are free to use their own fabrication facilities. That, obviously, creates quite different revenue streams and profit centers for the chains.

    The Maryland Optometric Association has filed suit against Davis over an arrangement Davis has with CareFirst healthplan in Maryland. I am told the allegation is that the deal Davis has done with the chains places independents on a much different playing field and creates unfair circumstances within which the independents must compete.

    There should be substantive information coming out on this in the next few weeks.
    Gil

  6. #6
    What's up? drk's Avatar
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    Johns, you have a good point, there.

  7. #7
    Master OptiBoarder ikon44's Avatar
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    this seems a very unfair arrangement, pardon my ignorance, are VSP an insurance company ?
    In the UK although certain categories of low income clients qualify for help, they
    can go where they like for the specs.
    We also have private healthcare companies like healthshield who will give an annual cash sum to clients for optical goods, but they have no say where the client gets their specs from,and certainly dont try and claim some money back
    from the optician.
    To find out what,s happening in the UK optical market:
    http://theOptom.com

  8. #8
    OptiWizard
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    This deal with walmart is probably just a survival tactic by Davis.

    The Lux/Cole merger will greatly expand the Vision One / eyemed patient base. And Davis seems more at the Vision One economy level.

    VSP seems to cater to more high end and independant, so the merger won't have as big an effect.

    I saw the Lux/Cole merger as a death knell for Davis, but maybe not with the Walmart agreement.

  9. #9
    What's up? drk's Avatar
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    There's always room at the bottom with Walmart and Davis.

    VSP is an insurance company, albeit a "non-profit", and was started by OD's in the '60's. They are the #1 vision insurance company over here.

    Ostensibly, they look out for the private OD by demanding high standards for their provider network, and pay a relatively higher reimbursement rate. They are mega-complex to deal with, and have 8000 rules to follow, and are rather control-freakish. But they do not allow chains to be providers, and the "lives" that they insure are steered to private ODs.

    Third-party is here to stay. Fifty percent of all vision care patients is about the ceiling, I believe. Not every employer is going to spring for true vision insurance (and that's why Cole was successful: they'd offer what amounts to a coupon to an employer at no cost, and the employer can tell their employees that they have vision benefits. Little do the employees know that they can clip a coupon out of Reader's Digest that is as good as their "insurance").

  10. #10
    Master OptiBoarder ikon44's Avatar
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    why do people in the US think it is up to there employer to provide them with
    spectacles, i mean they are not THAT expensive, no more than a decent outfit
    of clothes, or a good pair of shoes.
    To find out what,s happening in the UK optical market:
    http://theOptom.com

  11. #11
    Ophthalmic Optician
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    Ikon44:

    Many people in the US think they are entitled to benefts just because someone else has them.

    I read an article in our local paper today (Associated Press, I believe) that talked about the need for more supermarkets in rural areas. They quoted a guy saying "The local and state governments are to blame for the lack of grocery stores in rural areas. The ability to buy food is a basic right!"

    Can you imagine blaming a government because you chose to live out in the country and now it's too far to drive to get groceries?

    It's an "entitlement" society over here...

  12. #12
    Quote Originally Posted by drk
    News to me, per Vision Monday:

    "...Davis has broadened it's reach through a new agreement with Wal-Mart Stores, underwhich all of the more than 2,000 Wal-Mart Vision centers...joined Davis Vision's provider network as of June 1."

    I'm posting this as more evidence that there will be a continuing trend in this direction:

    VSP-private opticals
    Cole/Eyemed-Sears, LC, et al
    Davis-Walmart.
    Am I missing others?
    I also noted that Davis Vision has it's own labs.
    This really says that, at least at the retail level, VSP is the independent's friend, no?
    Costco

  13. #13
    Master OptiBoarder LENNY's Avatar
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    Blue Jumper

    Can somebody give me a zip code near walmart so i can check davis website for more info from the patients side.

  14. #14
    Optical Curmudgeon EyeManFla's Avatar
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    There were a number of Davis Vision plans incorporated in Cole/Vision One. A large number of franchaisees, including us, had refused to take the Davis Vision plans as being below minimum.
    "Coimhéad fearg fhear na foighde"

  15. #15
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    O.K.
    I understand all of your frustrations with Davis. It is no money-making deal. However, we get a lot more business since we got involved with them. People bring their friends and other family members who do not have Davis. Plus, a lot of Davis patients upgrade. However, I don't know if the'll pick me over Walmart. Would like to know what the deal between them is.

  16. #16
    What's up? drk's Avatar
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    Optiboarder,

    Not to pick on you, but why not just promote that you'll do one family member at 50% off when another family member gets eyecare at full price? That way, you don't have to file a claim with Davis Vision to get your break-even dollars. Just a thought.

  17. #17
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    Hey, I never said Davis was the only way for me to get people in. We have different promotions all the time. I just said that it doesn't hurt to get the word out. If my business depended on Davis, I wouldn't be writing on the Optiboard.

  18. #18
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    Quote Originally Posted by ikon44
    why do people in the US think it is up to there employer to provide them with
    spectacles, i mean they are not THAT expensive, no more than a decent outfit
    of clothes, or a good pair of shoes.
    Actually, they pay for their insurance out of their monthly pay checks. Some of the plans pay a decent amount, but most are rip-offs that will only pay a fraction of the money paid into them and pay nothing toward extras like AR or Transitions. I do a lot of insurance sales and see the good and the bad.

    On VSP and Wal-mart: While Wal-mart can't take VSP as payment, they can now access the on-line form for filing for reimbursement from their computers, walk the customer through the form, tell them exactly how much they'll be reimbursed, and then print off the form so the customer can mail the form in.

  19. #19
    Master OptiBoarder LENNY's Avatar
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    You can do the same thing if you are not leazy!
    Just log in on their webcite VSP.com

  20. #20
    What's up? drk's Avatar
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    I was unaware of that. Thanks.

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