Ben Chudner said:
Where do you think I came up with the argument. 😉You are absolutely right Ken. I have seriously researched whether or not to drop VSP. I have watched several of my friends do it. They always say the same thing. My gross is down X% but my net is only down X-Y%. Or in other words I could be working 25% less and only reduce my revenue by 16%. In a smaller practice, a 16% reduction in revenue is not that much. In a large practice, it can be a lot of money. Right now I have an associate that is trying to build a practice. VSP is helping to keep her books busy. When she gets to a point where she is booked 3-4 weeks out rather than 1-2 days, then I will have the excuse I need to drop VSP.That's what caught my attention in drgregory's post. I could charge $500 an exam, but the problem is my practice has less than 10% true private pay. I have a lot of patients that have no routine vision, but they don't like to come back if you don't make a medical diagnosis to charge their insurance. I am still curious as to what drgregory is really getting for an eye exam. I can tell you that for every dollar I charge, I only collect on average 82 cents. I could raise my fees, but then I would collect less per dollar I charge, because I already charge more than most insurance companies will pay.
at the 80% vsp office, the remaining 20% is comprised of about 3-4% medicare/aid, and 15% medical insurers (which pay in full) and 1% cash payers.
at the 20% vsp office, another 20% is medicare, and another 30% is medical insurers, and the rest is private pay.
a note on the vsp infected office - anything that is medical related is billed to medical insurance. none of this monitoring diabetic retinopathy et al for the measley vsp reimbursement.
another difference from private vs corp is that all of our opticians are CERTIFIED OPTICIANS, all of our techs are either LPNs or COMTs. not high school graduates that transferred from the shoe store three doors down. we also offer surgical treatment (via our ophthalmologists). our contact lens fitting fees are more appropriate as well:
new spherical = $179
new toric $187
new multi/mono $239
est spherical = $79
est toric = $87
est multi = $97
this is on top of exam fees. all of these are out of pocket. still look like a corporate office?
also, there is a CLEAR difference in our products. no lenses are dispensed/sold without antireflective (Zeiss Advantage or Crizal alize), all progressives are either Zeiss (Gradal, GT2, or Individual) or Varilux Physio. You dont get nickeled and dimed to "buy" a warranty. someone comes back and has scratched lenses, we remake them.
lastly, there is a CLEAR difference in our patients. we see patients who care about the health of their eyes. corporate ODs dont see alot of those patients, nor does the corporate environment spawn them.