ECP alliances help independent ODs stay in business

These groups are offering practitioners purchasing discounts, practice management advice and marketing assistance.

Issue: May 2012

Responding to a challenging environment and the survival needs of private optometrists, eye care practitioner alliances have evolved into more than just buying groups. Their services have expanded to include practice-building education and other support tailored to the private practitioner.

“The eye care practitioner (ECP) alliance is one way for independents to function like a chain while maintaining independent ownership,” Jerome Legerton, OD, MS, MBA, FAAO, a Primary Care Optometry News Editorial Board member, told PCON.

Industry fragmentation

“Historically, optometrists have been rugged individualists,” Dr. Legerton said. “Where two or three optometrists gather together, you’ll have 17 different opinions. And people who are investors and entrepreneurs love to spot a fragmented industry.

Jerome Legerton

“The mid-1980s was perfect for an entity like LensCrafters to come in,” Dr. Legerton continued. “They said, ‘We’ll buy better, we’ll concentrate on service and we’ll articulate that message in about an hour – and we’ll beat [private practices],’” he said.

“For example, a 1,500-outlet chain can do all kinds of aggregate buying and selling, but 1,500 independents can’t do that because they’re fragmented,” he said.

“So, today, alliances have taught optometrists the necessity of going with the flow,” Dr. Legerton said. The strategy is antifragmentation, he added.

Most alliances started out in the 1980s and 1990s as buying groups, loose organizations of independent optometrists who banded together to get volume pricing, Dr. Legerton said. Today, they have evolved to offer greater benefits, including streamlining and empowering practices by offering extra services such as practice development, marketing support, member networking opportunities, social media guidance, staff education and annual alliance-sponsored conferences.

C&E Vision, Vision West

Brad J. Shapiro principal of C&E Vision and Vision West, told PCON, “We have recently introduced a number of new services: frequent peer-to-peer meetings, educational seminars on how to convert to a medically based practice, social media webinars and online resource center, and billing and coding seminars, to name a few.

“For business-related services, we’ve also partnered with Care Credit to provide the best pricing and added various vendors that offer customized practice websites, online marketing solutions, website design services, recall services, credentialing services and human resource advisory services, which helps practices hire better,” he said.

C&E offers programs by which members can review their optical purchases and also review other members’ purchases to stay on top of market trends, Mr. Shapiro said.

Vision West was purchased by the principals of C&E Vision a number of years ago, according to Mr. Shapiro. Vision West continues to operate as a separate company under separate management, but synergies between the two are created whenever possible, he said.

C&E Vision and Vision West were founded in the early 1980s and collectively have more than 8,000 members.

IDOC

“IDOC members receive premier business education for ODs and staff through IDOC University as well as significant discounts and rebates from more than 60 vendor programs, ” Mark Feder, OD, president and chief executive officer of Independent Doctors of Optometric Care (IDOC), told PCON.

IDOC hosts an annual business conference, regional educational conferences and multiple peer-to-peer “best practices meetings” throughout the country, Dr. Feder said. Membership is renewed annually, and dues are equal for all practices, he said.

IDOC was founded in 1999 and currently has about 1,275 members in 42 states.

OD Excellence

OD Excellence, as an alliance, offers services based on two focuses, medical management and qualified business management, which is designed to raise practitioners’ top lines, according to Jerry Lieblein, OD, CEO of ODX.

“The average optometrist leaves thousands of dollars, maybe more than $100,000, on the table in improper coding and billing alone,” he told PCON. “With our services, we could actually increase their top line without them having to add one new patient. That’s a powerful tool.”

Not every optometrist graduates from optometry school and knows how to run a business, Dr. Lieblein said.

ODX reaches out to optometry students so they may have a head start on understanding the business side of optometry.

“We have a separate division for student membership, and we’re involved with all the states and all the schools,” Dr. Lieblein said. “We help students upon graduation, and we don’t charge them anything until they graduate. Our philosophy is to help optometry become better.”

ODX was founded in 2006 and is approaching 700 members in the U.S. and Canada.

Prima Eye Group

“Prima Eye Group is continuously developing new management tools,” Neil Gailmard, OD, MBA, FAAO, co-founder, president and chief operating officer of Prima, told PCON. “For instance, we’re currently working with two exciting new products. We’ve just incorporated marketing programs designed by David Ziegler, OD, which consist of personalized recall cards, targeted direct mail pieces and custom printed brochures about eye wear selections.

“And we’re developing our own Practice Metric Benchmarking system in conjunction with a major software developer. This system should be available to members this summer,” he said.

Prima Eye Group opened for business in November 2011 and has since accumulated 135 individual members at 85 offices in 30 states.

Vision Source

Vision Source’s senior vice president of strategic planning, Bobby Christensen, OD,

told PCON, “There are many big, positive changes in the works at Vision Source. New service positions have been added to help with staff education and Vision Source representative management and growth. We have expanded the marketing group, which is providing expertise in social media and branding. Also, district managers are being added to help members and administrators at the grassroots level.”

Vision Source was founded in 1991 and constitutes a membership of more than 2,400 offices, including more than 5,000 ODs, located in all 50 states and parts of Canada.

The future of ECP Alliances

“Eye care practitioner alliances are here to stay,” Dr. Legerton said. “The advantages chains and corporations have over private practice are here to stay. The number one external weakness for private independents is the inability to articulate who they are to the public, and the services ECP alliances provide help counter-balance this.”

ECP alliances will only grow larger and more influential, he said.

The alliances agree.

“ECP alliances are playing a major role in the revitalization of private optometry,” Dr. Christensen said. “In order for eye care practitioners to survive and thrive, alliances must provide significantly more services and support than traditional buying groups. A small business needs to network and share resources with others to be able to compete. In addition, providing a recognizable brand for private practices is a boon for intrastate and local referrals. Patients are brand conscious and will seek the brand when they move to a new location.”

“Doctors face challenges every day with managed care, marketing, staff management, purchasing power and strategic leadership,” Dr. Gailmard said. “Doctor alliance groups represent an excellent resource to bring professional management skills to the independent eye care practice. We believe we will see a dramatic increase in interest among private practice ODs in the business of eye care over the next 5 years.”

“Buying groups were prominent in the last 20 years” Dr. Feder said. “However, in the near future, we believe every eye care practitioner will belong to an eye care alliance because they offer so much more value. ECP alliances will represent a unified voice for optometry.” – by Daniel R. Morgan

For more information:

Bobby Christensen, OD, Vision Source vice president of strategic planning, can be reached at 1849 Kingwood Dr., Suite 101, Kingwood, TX, 77339; (281) 318-7840; fax: (281) 312-1153; vsourcebc@cox.net; www.visionsource.com.
Mark Feder, OD, IDOC president and CEO, can be reached at 5 Eversley Ave., Suite 204, Norwalk, CT, 06851; (203) 853-3333; fax: (203) 838-4362; mfeder@idoc.net; www.idoc.net.
Neil Gailmard, OD, MBA, FAAO, Prima Eye Group co-founder, president and COO, can be reached at 2625 Cumberland Pkwy, Atlanta, GA, 30339; (800) 668-0599; neil@gailmard.com; www.primaeyegroup.com.
Jerry Legerton, OD, MS, MBA, FAAO, a PCON Editorial Board member, can be reached at 3208 Lucinda Street, San Diego, CA, 92106; (619) 758-9140; fax: (619) 758-9141; jlegerton@aol.com.
Jerry Lieblein, OD, ODX CEO, can be reached at jerrylieblein@comcast.net; www.odexcellence.com.
Brad J. Shapiro, C&E Vision principal, can be reached at 1015 Calle Amanecer, San Clemente, CA, 92673; (949) 272-2450; fax: (949) 260-7843; brad@cevision.com; www.cevision.com.
Disclosure: Dr. Legerton has no relevant financial interests to disclose.