. . .WHEN YOU CAN DIVERSIFY YOUR PORTFOLIO AND BUILD YOUR FUTURE?

CANDIDLY, I AM sick of hearing about how managed vision care plans (MVCPs) are the enemy. If you are one of those who complain, then read on. This is for you!

THE GOOD

With or without an MVCP, everyone wants to visit those practices that have built their business models on quality products, excellent service and overall patient experience.

For those using other business models, an MVCP puts butts in the seats. It’s that simple. The consumer wants to use the pre-paid vision care benefit he or she purchased. If the practice does anything better than a mediocre job, the patient likely returns because of coverage, convenience, care or cost. (If the job is less than mediocre, then the consumer moves to the next provider on the list.)

We can dance around other issues, but that is the main reason MVCPs are good for many practices and why MVCPs can dictate payments, policies, etc. The dirty little secret: The health care consumer and the industry have given MVCPs the power.

THE BAD

Surprise news flash — a significant number practices receive most of their revenues from MVCPs. No. 1, if people do not want to pay cash for you to care for them, then your business has a problem. No. 2, medical eye disease is everywhere. Even without considering cataracts, retinal disease or glaucoma, 25% of patients have ocular surface disease, at a BARE minimum.

My concern is that if individual practice portfolios don’t diversify to include the management of medical eye disease, then these businesses will be subject to pressures, out of their control, that could quickly ruin them.

Each time an MVCP’s service reimbursement is cut by $5 to $10 (which is a 10% to 20% cut on service fees), many complain but then do nothing. They could drop the plan, but they are too dependent on it. They could raise prices on other services or products, but they are too afraid they might lose the consumer. What’s worse, though, is the ugly truth!

THE UGLY

I can’t predict the future of MVCPs, but I can predict the future of reimbursement, as competitive pressures influence MVCPs. It’s down! I can’t predict what new MVCPs rules, etc., will be put in place, but I can predict that most people will still just complain and accept.

And if current trends proceed, I can predict the market will continue to consolidate and the eye care industry, even the providers themselves, will have less control of their own destiny. We all will be subject to market forces that will alter who we see, how we practice and maybe even if we can continue to practice.

So my final words of wisdom are: Rather than use the 15 minutes you were going to use to complain, use the time to diversify your business, and build a better tomorrow. OM.