VSP Buys Capitol Optical Lab in Olympia WA

[sharpstick777]

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.”

[sharpstick777]

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.

[Fezz]

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!

[Chris Ryser]

Newsroom

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.

[David_Garza]

I am picking up what you are dropping!

That's a cold blooded strategy.....

[Fezz]

That's a cold blooded strategy.....

Welcome to the business world Doctor!

[Craig]

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

[David_Garza]

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?????

[Fezz]

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!

[Fezz]

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...............................!

[Lee Prewitt]

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.

[sharpstick777]

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.

[racethe1320]

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.

[racethe1320]

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.

[Johns]

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: