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Thread: VSP Buys Capitol Optical Lab in Olympia WA

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    VSP Buys Capitol Optical Lab in Olympia WA

    From the Sacramento Business Journal:

    "VSP has acquired Capitol Optical in Olympia, Wash.
    A full-service optical laboratory, Capitol Optical produces an in-house anti-reflective coating called Ethos and distributes other advanced ophthalmic products.
    Financial details were not released.

    “Capitol Optical will help us better serve VSP doctors and their patients in the Pacific Northwest,” Don Oakley, president of VSP Optics Group, said in a news release. “To benefit our customers, we will transform Capitol Optical into a world-class laboratory by enhancing current capabilities and incorporating the latest in advanced lab equipment. That work will begin immediately.”
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    I would like to note that in April VSP revoked the contracts of 2 Seattle-Tacoma area labs, Capitol Optical and Noveau. If you remember there was a lawsuit filed by Noveau's Tim Sutich against VSP.

    This brings up a possible strategy by VSP... revoke contracts in a certain area and then as the labs tank, come in and buy them at reduced prices.

    Does anyone else know which other labs VSP has removed from their network? I heard that up to 60 were going to lose their contracts.
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    The Man, The Myth, The Legend OptiBoard Gold Supporter Fezz's Avatar
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    Quote Originally Posted by sharpstick777 View Post

    This brings up a possible strategy by VSP... revoke contracts in a certain area and then as the labs tank, come in and buy them at reduced prices.

    I am picking up what you are dropping!

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    Back | Print
    VSP Optics Group Acquires Capitol Optical Laboratory
    Lab will expand service to VSP doctors and patients in Pacific Northwest
    Rancho Cordova, Calif., September 16, 2010 – VSP Optics Group, as part of VSP GlobalSM, today announced the acquisition of Capitol Optical, a full-service optical laboratory located in Olympia, Washington.

    “Capitol Optical will help us better serve VSP doctors and their patients in the Pacific Northwest,” said Don Oakley, President of VSP Optics Group. “Capitol Optical has an impressive history of providing quality products and superior service to their customers. To further benefit our customers, we will transform Capitol Optical into a world-class laboratory by enhancing current capabilities and incorporating the latest in advanced lab equipment. That work will begin immediately.”

    Founded in 1952, Capitol Optical was purchased by Steve Mullen and Jean Frieler in 2006. Under Mullen and Frieler’s management, Capitol Optical built a strong reputation for providing great service and products to its customers, including the production of Ethos™, their in-house anti-reflective coating, and becoming an authorized distributor of advanced ophthalmic products.

    Mullen will serve in the role of lab director of Capitol Optical, reporting to Warren Meyer, VSP’s Vice President of Laboratory Operations. Frieler has been named Regional Business Development Manager, reporting to Ed Morris, Director of National Sales and Marketing for VSP Optics Group.
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    Quote Originally Posted by Fezz View Post
    I am picking up what you are dropping!
    That's a cold blooded strategy.....

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    The Man, The Myth, The Legend OptiBoard Gold Supporter Fezz's Avatar
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    Quote Originally Posted by David_Garza View Post
    That's a cold blooded strategy.....
    Welcome to the business world Doctor!

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    Master OptiBoarder OptiBoard Silver Supporter Craig's Avatar
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    This is nothing compared to sending folks to Costco or Frames Direct as time marches on. The Lux, VSP and Big E are ruling and buying everything in sight. They are all partners in certain aspects and have no end in sight.
    Does this also mean VSP now sells lenses to non-vsp patients?

    Craig

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    Quote Originally Posted by Fezz View Post
    Welcome to the business world Doctor!
    Poor business ethics IMO,

    BTW doesn't VSP still own Millions in upaid back taxes and penalties to our country?????

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    The Man, The Myth, The Legend OptiBoard Gold Supporter Fezz's Avatar
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    Quote Originally Posted by Craig View Post
    This is nothing compared to sending folks to Costco or Frames Direct as time marches on. The Lux, VSP and Big E are ruling and buying everything in sight. They are all partners in certain aspects and have no end in sight.
    Does this also mean VSP now sells lenses to non-vsp patients?

    Craig

    One is three and three is one!

    They are almost one in the same. The lines that divide them are getting fuzzier and fuzzier!

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    The Man, The Myth, The Legend OptiBoard Gold Supporter Fezz's Avatar
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    Quote Originally Posted by David_Garza View Post
    Poor business ethics IMO,

    BTW doesn't VSP still own Millions in upaid back taxes and penalties to our country?????
    Ethics and business?

    Come on...............................!

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    Master OptiBoarder OptiBoard Silver Supporter Lee Prewitt's Avatar
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    It will be real interesting to see how VSP tries to steer VSP to Capital and away from it's other "partner" labs. But I know that Steve Mullen likely made a bundle on the sale. You should have seen the lab before he got it.
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    Quote Originally Posted by Lee Prewitt View Post
    It will be real interesting to see how VSP tries to steer VSP to Capital and away from it's other "partner" labs. But I know that Steve Mullen likely made a bundle on the sale. You should have seen the lab before he got it.
    Lol... have you seen Jeff and Lester's van on the TV show Chuck? That is what Capitol used to look like.

    BTW, Jean is a former Optical Manager at the Mayo Clinic and a former Zeiss rep for the Pacific Northwest, she is wonderful and very professional. Although I have met Steve I cannot vouch for his character other than he appears very professional.
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    Quote Originally Posted by Craig View Post
    This is nothing compared to sending folks to Costco or Frames Direct as time marches on. The Lux, VSP and Big E are ruling and buying everything in sight. They are all partners in certain aspects and have no end in sight.
    Does this also mean VSP now sells lenses to non-vsp patients?
    Are you trying to say VSP Is sending folks to Coscto or Frames Direct ? I hope not. Nothing in the Costco VSP relationship is different than last year. Patients could always go there. It's called out of network. Same now as it was in the past.

    VSP labs have also always processed non-vsp patients lenses.

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    Quote Originally Posted by Fezz View Post
    One is three and three is one!

    They are almost one in the same. The lines that divide them are getting fuzzier and fuzzier!
    I'd love to here your understanding of the relationship between the three. Especially the Lux VSP one.

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    Quote Originally Posted by David_Garza View Post
    That's a cold blooded strategy.....
    But not a new one, by any stretch of the imagination. Henry Ford was notorious for this type of strategy, just as WalMart is.

    The model is to give as much business as possible to a chosen group of suppliers. In Ford's case, it was the parts suppliers; for VSP, it's the ODs. The key was to make this group of suppliers dependent on Ford, to the point where he was providing them with the majority of their orders. He would increase the orders to the point to where they would hire more help, take out loans to buy more equipment, and gear up for more orders. Then, when the dependence was assured, the orders would stop, and Ford would go in and buy the supplier for pennies on the dollar.

    Sound familiar? WalMart does the same w/their suppliers, only rather than buying them out, they just demand the product for a lower price.

    VSP does the same w/ the ODs. They love a practice that is 20%, 30%, and even 50% VSP. These guys are so dependent on VSP that when the reimbursements are lowered, the ODs can do nothing buy say, "Well at least they're giving me this much..."

    Same way with the labs. Increase the dependence, yank the contract, and wallah, you can pick up a lab at a bargain price! Essilors done it as well, only they've done it by snagging accounts w/rock bottom pricing, until the competition withers to the point they can be bought out, or they close on their own.

    Don't you just love business?:cheers::cheers:
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    Master OptiBoarder OptiBoard Silver Supporter Craig's Avatar
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    Quote Originally Posted by Fezz View Post
    One is three and three is one!

    They are almost one in the same. The lines that divide them are getting fuzzier and fuzzier!
    Did you mean Fezzier and Fezzier?

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    Master OptiBoarder OptiBoard Silver Supporter Craig's Avatar
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    Quote Originally Posted by racethe1320 View Post
    Are you trying to say VSP Is sending folks to Coscto or Frames Direct ? I hope not. Nothing in the Costco VSP relationship is different than last year. Patients could always go there. It's called out of network. Same now as it was in the past.

    VSP labs have also always processed non-vsp patients lenses.

    You have not been kept up to date; VSP is sending certain companies to Costco and the internet is the next wave! Also VSP is hiring OD's in California to go into retail. They get all the frame and lens business from a captured source with no big outlay for the OD and they get to pretend they have their own VSP business.

    Beware of the VSP monster or you will end up with a practice that they want you to have.

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    Quote Originally Posted by Craig View Post
    You have not been kept up to date; VSP is sending certain companies to Costco and the internet is the next wave! Also VSP is hiring OD's in California to go into retail. They get all the frame and lens business from a captured source with no big outlay for the OD and they get to pretend they have their own VSP business. Beware of the VSP monster or you will end up with a practice that they want you to have.
    Not true. I already explained the Costco arrangement in the other thread. Internet is NOT coming. PLease enlighten me if you would. They are also NOT hiring OD's. I'd really like to know where that rumor came from. Please enlighten me and prove it. Ask me how I know and am so sure ;)

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    Quote Originally Posted by racethe1320 View Post
    Ask me how I know and am so sure ;)
    Are you on VSP's payroll?

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    Quote Originally Posted by racethe1320 View Post
    Ask me how I know and am so sure ;)
    How do you know and why are you so sure?

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    Quote Originally Posted by Fezz View Post
    Are you on VSP's payroll?

    Of course! racethe1320 is an OD! :bbg:

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    Quote Originally Posted by racethe1320 View Post
    Not true. I already explained the Costco arrangement in the other thread. Internet is NOT coming. PLease enlighten me if you would. They are also NOT hiring OD's. I'd really like to know where that rumor came from. Please enlighten me and prove it. Ask me how I know and am so sure ;)
    Actually, VSP has secretly purchased 2 clinics, one in California as a test. Where the other one is I am not sure. VSP is also allowing a few 10 Optician owned practices to be VSP providers (with reduced reimbursements). In all cases, they have signed non-disclosure agreements, and for the Opticians they cannot reveal in any advertising that they are VSP providers, the patient has to walk in and ask. I have talked to people in both circumstances.

    VSP is trying desperately to cut their costs and make themselves more affordable to companies health plans. They have lost many huge accounts to Eyemed over the last few years. Of course, they could make their plans more simple, but that would be too easy.
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    Quote Originally Posted by sharpstick777 View Post

    VSP is trying desperately to cut their costs and make themselves more affordable to companies health plans. They have lost many huge accounts to Eyemed over the last few years. Of course, they could make their plans more simple, but that would be too easy.
    And most of those employees are ticked at the higher costs after being promised the same level of benefits!

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    Quote Originally Posted by sharpstick777 View Post
    Actually, VSP has secretly purchased 2 clinics, one in California as a test. Where the other one is I am not sure. VSP is also allowing a few 10 Optician owned practices to be VSP providers (with reduced reimbursements). In all cases, they have signed non-disclosure agreements, and for the Opticians they cannot reveal in any advertising that they are VSP providers, the patient has to walk in and ask. I have talked to people in both circumstances.

    Again, you've failed to see the benefit to the private OD. (Of course, I don't see it either, but I'm neither smart, nor an OD.)
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