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Thread: Davis Vision and Superior Vision Merging

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    My Brain Hurts jpways's Avatar
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    Redhot Jumper Davis Vision and Superior Vision Merging

    From Vision Monday:

    Latest News
    Highmark’s HVHC and Centerbridge Reach Deal to Create Integrated Approach for Davis Vision and Visionworks

    By Staff
    Wednesday, August 9, 2017 10:45 AMSAN ANTONIO, Texas—Private equity firm Centerbridge Partners L.P. and HVHC Inc. (HVHC), a wholly-owned subsidiary of Highmark Inc., have reached a definitive agreement whereby Centerbridge will purchase HVHC’s Davis Vision managed vision care subsidiary.

    Under the terms of the agreement, Davis Vision will be combined with Centerbridge’s existing managed vision care portfolio company, Superior Vision. In addition, Highmark will acquire a minority ownership interest in the combined Davis Vision-Superior Vision company, according to the companies’ joint announcement.

    In a separate transaction, Centerbridge will acquire a minority equity stake in 750-store Visionworks, HVHC’s optical retail subsidiary. Highmark will retain a controlling ownership interest in Visionworks, and optical industry veteran executive Peter Bridgman will become chief executive officer of the optical retailer, according to the announcement.

    Financial terms of the deals were not announced. Highmark had confirmed to VMail in June 2016 that it was exploring options for HVHC’s Visionworks and Davis Vision businesses.

    “In today’s dynamic health care marketplace, this is a smart, strategic decision that will best serve the needs of Highmark customers and members, as well as Visionworks, Davis Vision and Superior Vision customers and the communities that we serve,” David Holmberg, president and CEO of Highmark Health, Highmark’s parent company, said in the announcement.

    The transactions are expected to close in the fourth quarter of 2017, subject to regulatory approval, the companies stated. Based here in San Antonio, HVHC and its subsidiaries generated $1.6 billion in revenue in 2016. Based in Baltimore, Superior Vision serves more than 11 million members.

    “We are thrilled to be partnering with Highmark and the management of all three businesses across this multidimensional transaction,” Centerbridge managing director Dan Osnoss said in the announcement. “We believe the combination of Davis Vision with Superior Vision presents the opportunity to create the leading national managed vision benefit offering with differentiated service for customers and members.”

    In addition, Osnoss said Centerbridge looks forward to “supporting Visionworks in continuing to deliver an exceptional retail experience and in its next phase of growth. In the coming months, we will continue to work with Highmark to plan and implement a smooth transition for our respective organizations and stakeholders.”

    Bridgman, who assumes the CEO role at Visionworks, has deep industry experience and will lead the company “through the transaction’s closing and beyond as Visionworks continues on its growth path,” according to the announcement. His experience includes holding posts as senior vice president and general manager for LensCrafters, senior vice president and general manager for Pearle Vision and vice president of Strategy & Innovation for EyeMed.

    Jim Eisen, who has been with Visionworks/HVHC for the last nine years and served a three-year tenure as CEO of HVHC, has decided to step down in connection with the transaction, the announcement noted.

    Highmark, which built the HVHC business into an industry leader over the past decade, will be able to access additional capital to invest in its core businesses and in Highmark Health’s strategy of integrating health care delivery and insurance coverage as a result of the proposed transaction, the announcement noted.

    Holmberg noted, “We have a bold, transformational strategy that will redefine health care. Integrated care and coverage is the future, and Highmark Health is going to create it. This transaction is game-changing and will enable us to further accelerate the execution of our strategy—and enhance our competitive position for the benefit of our members, patients and communities—during the balance of 2017 and well into the future.”

    CapM Advisors acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom served as legal counsel to Highmark. Barclays and Macquarie Capital acted as financial advisors to Centerbridge.

    Goldman Sachs, Bank USA, Barclays, BMO Capital Markets, Macquarie Capital and Morgan Stanley Senior Funding, Inc. are providing financing for the Davis Vision transaction. Willkie Farr & Gallagher LLP served as legal counsel to Centerbridge. Harris Williams & Co. provided advisory services to Highmark.

    Source: http://www.visionmonday.com/latest-n...visionworks-1/

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    My Brain Hurts jpways's Avatar
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    I'm trying to decide which vision plan sucks more in this merger (because they're both pretty bad). I wonder if they're going to keep it as 2 crappy divisions (Superior Vision + Block Vison) or combine into a single crappier division (Davis Vision + Highmark Vision)
    Last edited by jpways; 08-09-2017 at 11:59 AM.

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    Hopefully it's a glass half-full.

    So far I'm unaware of Superior Vision trying to dictate labs for its network providers. The fact that SVP is the one buying DV indicates suggests DV had the worse competitive model and strategy. If SVP holds strong to 'keeping it simple,' tolerable reimbursements, and refrains from trying to mission-creep itself into an internet storefront---then maybe it'll prove to be bigger competition to other big insurers devoted to competing with providers.

    Let's hope it's the first domino in a good trend.

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    Quote Originally Posted by Hayde View Post
    Hopefully it's a glass half-full.

    So far I'm unaware of Superior Vision trying to dictate labs for its network providers. The fact that SVP is the one buying DV indicates suggests DV had the worse competitive model and strategy.
    That's for sure. They certainly wasted a lot of money. Anytime they made 1 lens incorrectly, they would always remake the pair. I never had a problem with making just one transitions lens but they always insisted that the colors would not match. I'm not talking about an old pair...I'm talking straight out of the lab and made with incorrect Rx. So many remakes because of stupid errors. Some orders took 3 months for them to get right! Probably wouldn't hate them so much if they didn't dictate that we use their lab (WHICH SUCKS!). As it is...I'm glad I work for a new company that does not participate with Davis! Happy days ; )

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    It makes me nervous. We have a vision works in town. We have a hospital in town that is owned by highmark. Davis vision kicked everyone off that hospital's vision panel except for vision works. They are forcing all the hospital employees to use the store that they own. Davis vision also offers the other plans in the area more of a frame benefit to go to vision works. $50 more. I wouldn't have been nervous about this deal except now superior vision has a stake in vision works. Are they going to start forcing their superior vision members and their Davis vision members to go to Vision Works or give them more incentive to go to their vision works store? It just seems like such a conflict of interest to me.

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    Master OptiBoarder LENNY's Avatar
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    The only good thing I see i this merger is if Superior will be using their model to run Davis they will lose all their contracts! To be frankly Davis is and was one huge and well operated machine! (maybe with the exception of lab manufacturing problems...)

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    Quote Originally Posted by Freeform3413 View Post
    It just seems like such a conflict of interest to me.
    Because it is. Just like luxottica with eyemed forcing some plans to only go to luxottica owned retail locations. How is that ok??

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    Master OptiBoarder AngeHamm's Avatar
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    Quote Originally Posted by LENNY View Post
    To be frankly Davis is and was one huge and well operated machine! (maybe with the exception of lab manufacturing problems...)
    That's a pretty significant exception.
    I'm Andrew Hamm and I approve this message.

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    Quote Originally Posted by AngeHamm View Post
    That's a pretty significant exception.
    So True. I am really celebrating the fact that I left an office that was a Davis provider and switched to a non-provider. My orders are coming in perfect in a timely manner! What a luxury!

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    Quote Originally Posted by jpways View Post
    I'm trying to decide which vision plan sucks more in this merger (because they're both pretty bad). I wonder if they're going to keep it as 2 crappy divisions (Superior Vision + Block Vison) or combine into a single crappier division (Davis Vision + Highmark Vision)
    +1 for speaking the truth.
    Erik Zuniga, ABOC.

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    While I prefer Superior to Davis, it would make more sense for Superior to utilize Davis's lab(s). If the result is one company, it'll probably be run like Davis. I really wish Spectera(ble) would have been the discount provider to buy Davis. If in the end all members turn into Davis members, I'd rather lose Spectera than Superior, since I don't take Davis.

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    Master OptiBoarder AngeHamm's Avatar
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    Quote Originally Posted by pknsbeans View Post
    While I prefer Superior to Davis, it would make more sense for Superior to utilize Davis's lab(s). If the result is one company, it'll probably be run like Davis. I really wish Spectera(ble) would have been the discount provider to buy Davis. If in the end all members turn into Davis members, I'd rather lose Spectera than Superior, since I don't take Davis.
    It's not what I want to happen, but it is what I expect to happen.
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    Every year I think about enrolling the office in Davis because they have a huge foothold in Maryland , every year we decide against it.

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    Quote Originally Posted by Tallboy View Post
    Every year I think about enrolling the office in Davis because they have a huge foothold in Maryland , every year we decide against it.
    Don't do it! Their lab work is the worst and I used to work for Pearle and Walmart.

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    Master OptiBoarder OptiBoard Silver Supporter ak47's Avatar
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    So every year you go thru a slow period, become disillusioned, almost stab yourself in the gut in a momentary lapse of sanity, and then...at the last moment...you sail smoothly away from the iceberg that will distroy your practice........here's what I do.....every time disillusion sets in, top it off with whiskey & you'll avoid a lot of trouble!!

    Quote Originally Posted by Tallboy View Post
    Every year I think about enrolling the office in Davis because they have a huge foothold in Maryland , every year we decide against it.

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    Crap + Crap

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    Quote Originally Posted by ak47 View Post
    So every year you go thru a slow period, become disillusioned, almost stab yourself in the gut in a momentary lapse of sanity, and then...at the last moment...you sail smoothly away from the iceberg that will distroy your practice........here's what I do.....every time disillusion sets in, top it off with whiskey & you'll avoid a lot of trouble!!
    I'll drink to that! Or go to the gym, or eat kale or ... eh I'll probably just drink to that.

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    Master OptiBoarder OptiBoard Silver Supporter ak47's Avatar
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    I would rather be pounded by hail than eat kale

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    Blue Jumper It will all change in a few month, .......................

    Quote Originally Posted by mervinek View Post

    Because it is. Just like luxottica with eyemed forcing some plans to only go to luxottica owned retail locations. How is that ok??

    It will all change in a few month, when Luxottica becomes an Essilux company and everything will be reorganized.
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    http://optochemicals.com............................. http://arcoatings.com

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    My new employer which we so happen to be opening a brand new optometry department and optical which has never been here before has Superior Vision as their vision supplement. Obviously this means will probably be a provider for our own insurance. Can anyone elaborate on this merge and what that may mean for us when we open and get started? I've never been a provider for either but have heard the horror stories and still hear on a daily basis about Davis Vision. Thank you for your insight!

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    My Brain Hurts jpways's Avatar
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    As of this moment nothing. I just looked up the original merger article and they were expecting it to close 4Q 2017. However, that's almost over and I have yet to see any further announcements concerning the future of the two plans.

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    My Brain Hurts jpways's Avatar
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    Here's the link to the official statement from Davis Vision about the merger (which is slightly more clear than the VMail article)
    http://cvw1.davisvision.com/forms/St...Memo_Close.pdf
    From what I'm reading it says:
    The 2 plans will combine into 1 sometime early in 2018, there is no mention of what the plan will be called or even if either plan's benefit structure will change to make up the final structure. Though I'm not holding my breath for something that I will like better then what I get from Davis now or the reimbursements I saw from Superior before we dropped them. Though I have trouble seeing Centerbridge closing or selling off the Davis Vision labs.
    Last edited by jpways; 12-04-2017 at 10:39 AM.

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    Have no fear they will be out of business in 2 years.

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    The simple thing is to get rid of these worthwhile companies entirely. Wanna know how?

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    Visionworks and davis are subject to anti trust violations. Lets pursue it

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