By Howard Purcell, O.D., F.A.A.O., and Senior Vice President of Customer Development, Essilor of America

I recently read a story about Great Expressions, a network of 200 dental offices nationwide, which has seen significant growth through the acquisition of independent dental practices to 2,300 employees and annual revenues of $275 million.  The network’s growth has been driven by the dental industry’s trend toward consolidation of practices into so-called dental service organizations (DSOs)—now doing between $6-7 billion worth of business today. 

The article made me think about the correlation with optometry, and the importance of staying current with evolving consumer demands, trends and changes in the marketplace.  Most importantly, I think it’s critical to think about ways to maximize our relevance to consumers amid these changes.

We’ve compared our challenges to similar trends that have all but eradicated independent bookstores and pharmacies—and now, we see similar threats facing independent dentistry.  The article describes several factors that may be driving this consolidation—all very similar to the topics we have discussed throughout the last year:

• Growing diversity of new graduates, many of whom are seeking more work/life balance
• The complexity of running a back office – billing, insurance and regulation
• Large amounts of student debt
• The challenge of financing a solo practice

It’s important to keep an eye on trends within other healthcare fields as we come together to determine the best path forward for independent practitioners.  I’d love to hear what you think.

Join the conversation.

By Howard Purcell, O.D., F.A.A.O., and Senior Vice President of Customer Development, Essilor of America

In independent ECP forums across the country, we’ve had some healthy discussions about our patients’ growing acceptance and reliance on technology to get informed and, sometimes, to make health care purchases.  Clearly, this has an impact on independent practices, and we must adapt to consumer behaviors while educating ourselves on those trends. 

I came across a recent study from Cisco that surveyed global health care decision makers and their patients to gain insights about how they view technology’s role with regard to health care.  While ECPs were not included in the survey, I do believe these findings have parallels and implications for us, and it’s worthwhile to look at some of the key statistics. 

The survey found that three-quarters of global consumers would be open to a virtual doctor’s visit, while nearly 50 percent of consumers and 66 percent of providers would be comfortable sharing and receiving health information via social media.  To me, that says volumes about patients’ comfort with technology, especially as it’s used for access to health care. 

Other highlights:

• In North America, nearly 80 percent of consumers are comfortable submitting personal medical history and diagnostic information online. 
• About 4 in 10 consumers say that they would be interested in receiving recommendations about doctors, hospitals, and medication automatically through their computer or mobile devices.
• Of those who have access to health care apps on their mobile devices, 25 percent indicate they are for chronic disease management.

These findings speak to a new and evolving openness among consumers – our patients – and how they view access to health care, redefining traditional treatment.  No doubt, technology is a conduit to health care, and I ask you to join me as we think about the best solutions for our patients to ensure the long-term vitality of the independent eyecare practice. 

Please share your thoughts on preserving independent optometry on the Seen and Heard section of this site. Join the conversation.

By Howard Purcell, O.D., F.A.A.O., and Senior Vice President of Customer Development, Essilor of America

I know that many of you plan to attend Vision Expo East this week in New York.  I always look forward to this annual trade show to learn about advances, challenges and opportunities in our industry, especially as it pertains to independent practitioners.  In many ways, it feels like a reunion to see and catch up with so many I admire.

For this post, I’m thrilled to announce that I’ll be a part of Dr. Gary Gerber’s ‘Power Hour,’ a weekly online radio talk show that will broadcast in front of a live audience at VEE this Saturday, March 16, at 2:30 p.m. ET.  Our venue for the show will be the Javits Center’s Medical and Scientific Theater, and we’ll be joined by Bob Schultz from Vision One Credit Union.

We’ll talk about the current state of the independent optometric industry, with a special focus on succession planning and tips for younger doctors to purchase a practice sooner, as well as ways older ODs can transition into retirement.  Bob will address how the Vision Loans program, a joint initiative of Essilor of America, VSP Global and Vision One Credit Union, is addressing the succession issue.    

I think that there are few issues more important than succession planning, and it’s a topic that I’ve heard over and over, especially in the past year as we’ve toured the country and met with ECPs about hot issues we face today as a profession. 

I hope that you’ll join the Power Hour this Saturday.  If you’re interested in dialing in by phone, the number is 646.716.8746 or you can watch from your computer.  Details are found here. 

Please share your thoughts on preserving independent optometry on the Seen and Heard section of this site. Join the conversation.

By Howard Purcell, O.D., F.A.A.O., and Senior Vice President of Customer Development, Essilor of America

In a previous post, I wrote about the Vision Loans program, a practice transition program funded by Essilor of America, VSP Vision Care and Vision One Credit Union.  Recently Vision Loans announced a significant milestone:  its 200^th loan to help an independent ECP purchase a business. 

Since its inception, the program has provided more than $65 million in loans to support doctors, many of whom once worked in retail environments and wanted to realize the dream of owning their own private practice.  In fact, both Essilor of America and VSP Vision Care committed $10 million in additional funding last year because of our strong belief in this program. 

Each of us knows the challenge of buying into an existing practice partnership or purchasing a practice outright.  We know that an overwhelming majority of new ECPs aspire to own their own business but lack the financing to realize their dreams.

The Vision Loans program can help a first-time buyer in one of four ways:  1) purchase a stake in an existing practice; 2) in conjunction with an existing Vision One loan program, purchase 100 percent of an private practice; 3) make a down payment in conjunction with seller financing when purchasing up to 100% of a private practice; or 4) refinance the practice debt used as a startup or purchase of private practice. 

I believe that the mission of this 10-year old program has never been more important than it is today.  With new market challenges, an economy that is still recovering in many parts of the country and increased competition, Vision Loans ensure that doctors have the opportunity to own a practice, build wealth and better compete in a changing optometry landscape. 

But it’s not just aspiring practice owners who benefit from the program.  Vision Loans provide retiring doctors with an effective way to sell their practices, while assuring that the business that they’ve worked to build will continue to serve their community for years to come.  For me, the program is a catalyst for ECPs at varying points in their career, and I’m proud that it has had such a positive effect on so many. 

If you’d like more information about Vision Loans, contact Vision One Credit Union’s lending division at 800.327.2628 or visionone.org.

Please share your thoughts on preserving independent optometry on the Seen and Heard section of this site. Join the conversation.

By Howard Purcell, O.D., F.A.A.O., and Senior Vice President of Customer Development, Essilor of America

In my last blog, I addressed the need for independent ECPs to embrace technology, particularly in dispensaries.  Clearly, technology can be a great means to improve our business, just as it can present challenges.  Merely keeping up with new technology advances can be a full-time job.

When our discussions have turned to technology, some have voiced concerns about patients tapping the internet to gather information and, at times, purchase products.  I relayed my own story about conducting online research about various flat-screen TV models before I made my purchase in a bricks and mortar store.

From my reading and from speaking with many colleagues, it appears that consumers will increasingly take a tandem approach, using both the internet and traditional retail environments for a given purchase.  I believe this has implications for all of us, and we need to be aware of those trends in consumer behavior.

Last year, the Wall Street Journal published a story on showrooming – a term used to describe consumers’ desire to touch, see and learn about the product in the store – and later, purchase it online at a better price.  Since then, trade sites like The Optical Vision Site, have written about this trend. 

As you read this, you may be imagining your own patient/consumer finding frames that they like in your dispensary but purchasing them online.  As independent ECPs, the challenge is to find ways to prove your value to patients in fulfilling their eyeglass prescriptions.  Perhaps it’s the professional consultation that comes with the purchase or a small gift or guarantee.  Perhaps a kiosk in the office that allows you to offer an unlimited selection of products, giving the patient/consumer no reason to shop anywhere else.

I know that there are some best practices that you’ve used to deliver exemplary customer service, to show value and keep yourselves and your practices top of mind with customers.  I’d like to hear from you!  

Please share your thoughts on preserving independent optometry on the Seen and Heard section of this site. Join the conversation.

By Howard Purcell, O.D., F.A.A.O., and Senior Vice President of Customer Development, Essilor of America

As we start the new year, it’s common for many of us to make resolutions to improve our health and well being.  Many of you also may be thinking about your practices – and how you can grow and improve your business in 2013.

I’m reflecting a bit about the webinar that I hosted in December and a line of discussion surrounding technology and its role in independent optometry.  I think it’s fair to say that although we embrace new technology in pretesting and the examination room, many of us have been less than enthusiastic in our embrace of technology for the dispensary. 

Over the last decade or so, we’ve had a relatively few new high-tech devices introduced in our dispensaries, and, in general there’s been a tendency to resist those advances, as we cling to the old ways of doing business with a PD ruler and felt tip marker, as one example.  

I think back to my own practice when I thought the introduction of auto-refractors would lead to my business’s demise.  Instead, I found that over time, it made me better and more efficient in serving the needs of my patients.  It didn’t replace me.  It made me better and allowed me more time for face to face conversations with my patients!  As we work together to bring needed and valuable technology to the dispensary we need to remind ourselves (and our dispensers) that technology is an enabler and not a replacement for a well-educated and effective professional dispenser. 

As we look ahead, I’d like to encourage dispensers to look at ways to adopt and benefit from technology.  I know that we will see some amazing progress in the years ahead.  Without a doubt, mass retailers – those already in business and those who’ll set up shop in coming years – have and will embrace technology to gain a competitive edge.  

Instead of our natural tendencies to fear technological advances, let’s look instead at the potential that it brings us to be better in our profession, more efficient in our operation, and more valuable to our patients. 

Happy, Healthy and Prosperous New Year!  

Please share your thoughts on preserving independent optometry on the Seen and Heard section of this site. Join the conversation.

By Howard Purcell, O.D., F.A.A.O., and Senior Vice President of Customer Development, Essilor of America

It’s an exciting time for optometrists, and we certainly can all agree with the recent ranking by CNNMoney naming optometrists to their Best Jobs in America list. Optometrist was ranked 12^th on the list of 100 jobs with high marks for personal satisfaction, benefitting society and good pay.

However, as I’ve previously discussed on this blog, optometrists still face many challenges. If we want to continue to thrive as a top profession, we must continue to think of ways to keep independent optometry alive in a market with emerging options.

One of our challenges is continuing to be innovative in the marketplace; whether it’s staying up-to-date on technology advancements in patient communications, modernization of office design or providing patients with state-of-the-art lenses that meet their vision needs. At Essilor, research and development is a priority, and it’s our goal to provide the most innovative lenses that meet the daily needs of consumers/patients. We’re proud of our recent achievements in this area, including the opening of our new world-class Innovation and Technology Center and being named one of Forbes Most Innovative Companies for the second year in a row.

I encourage you to attend the national interactive discussion this evening at 6:30 p.m. CST to learn more about the challenges facing independent optometry now and in the near future. I have invited Dan Mannen, OD, FAAO, from VSP Global to participate with me in the dialogue. Register now.

We also welcome your thoughts on preserving independent optometry on the Seen and Heard section of this site. Join the conversation.

By Howard Purcell, O.D., F.A.A.O., and Senior Vice President of Customer Development, Essilor of America

In the last post, I addressed the costs of running an independent practice and the hurdle that expenses – such as marketing, rent and inventory – represent.  In my opinion, the most significant cost associated with owning a private practice is salaries and compensation of ECPs and staff who keep our businesses operating smoothly.

In conducting industry forums with independent practitioners over the last few months, I have heard a consistent refrain about the challenge that many independent practitioners experience when hiring graduating ODs.  The irony is that the majority of graduating ODs – 72 percent, according to a VSP Vision Care survey released earlier this year – prefer to start their careers in private practice ownership.

But the reality presents a stark contrast:  Independent practitioners consistently tell me that they can’t afford to hire graduating ODs because of their salary needs.  According to the VSP survey, three-quarters of first-year optometrists carry $100,000 or more in student debt.

This is one reason why many new ODs are entering the mass retail environment.  Larger retailers are able to offer more attractive salaries and benefits that allow the OD to pay off student debt, while independent practitioners miss out on the best and brightest of the new crop of graduating ODs.

Clearly, it makes sense that new ODs want to pay off their debt as soon as possible, but if independent practices can’t compete with mass retailers in terms of recruitment, we have a problem.  Previously, I wrote about the Vision Loans program that Essilor of American and VSP Vision Care developed to help finance private practice purchases, buy-ins and refinancing.

In the past ten years, this program has been instrumental in helping many independent ECPs realize their dream of practice ownership.  While it’s a step in the right direction, it’s not a solution for the entire industry.  We need to get creative and find ways that allow more graduating ODs to purchase or buy into independent practices, while helping seasoned professionals sell practices and transition into retirement.

We continue to lose talented new ODs to mass retailers, and we must look at deeper solutions that allow this next generation of ECPs to realize their dream.  I see this issue as imperative to our survival.

Do you have ideas for preserving independent optometry?  Join the conversation.

By Howard Purcell, O.D., F.A.A.O., and Vice President of Customer Development, Essilor of America

In my previous post, I recapped some of the robust discussion that we’ve had at forums designed to generate good conversations about sustaining independent optometry, especially in the wake of imminent competition from mass retailers like Specsavers. 

One issue that continues to pop up at our meetings with independent ECPs is mounting expenses related to running a business.  I remember clearly from my own experience running a family-owned optometry practice that the costs associated with day-to-day management – acquiring and overseeing talent, marketing costs, rent, inventory and insurance – can often seem an insurmountable challenge.

For others, the thought of purchasing an independent practice is only a dream.  For that reason, Essilor, VSP and the Vision One Credit Union teamed up nearly ten years ago to fund the Vision Loans Program, which supports independent ECPs by providing loans to optometrists looking to finance first-time practice purchases, partnership buy-ins and refinancing options.

Since we launched the program, we have distributed some $58 million in financial support to qualified optometrists who want to enter private practice and those who want to successfully transition out of it.  For us, it’s a way to help with succession planning, with all loan payments reinvested back into the program to ensure continued success and growth of private practice.  We believe so much in the program that earlier this year, Essilor and VSP Vision Care announced an additional combined $10 million to fund the program.

It’s incredibly gratifying to hear the stories from those who’ve benefited, like this one from Trinae S. Rosato, a New Jersey O.D.:

Vision One Loans Program has allowed me to purchase my dream.  They were very helpful in walking me through the entire process, no question was too small.  Although they are on the west coast I felt the customer service was as if I was dealing with a local company.  They were competitive with other loan venders but truly understand the needs of optometrists.

Dr. Rosato’s remarks are a testament to the power of this program, and our goal for promoting independent optometry.  If you’d like more information about Vision Loans, call 800.327.2628 or log onto www.visionone.org.

In closing, I want to say to our colleagues impacted by Hurricane Sandy that our thoughts and prayers are with you as you work to recover from the massive storm. 

Do you have ideas for preserving independent optometry?  Join the conversation.

By Dr. Howard Purcell, O.D., F.A.A.O., and Vice President of Customer Development, Essilor of America.

In the past two weeks, I’ve traveled to Chicago, Anaheim and Kansas City to meet with independent eyecare professionals.  In Anaheim, we simulcast the meeting, giving an opportunity to ECPs across the country to tune in, ask questions and provide comments.  We’ve started some compelling discussions as we determine the best path forward to support independent optometry in this country.

These forums, where we invited VSP to participate as a special guest, have inspired some excellent discussions about the state of our industry, especially in the wake of changing dynamics that will color our future.  No doubt, looming competition from companies like Specsavers, changes in consumer behaviors and buying patterns, and the costs of hiring new graduates burdened with student debt are affecting independent practices today.

I especially appreciate the creative thinking, ideas and solutions posed for our industry.  As I’ve shared at the meetings and on the simulcast, Essilor has a deep interest in the vitality of independent optometry because it is the foundation of our business; so, in essence, we are all in this together, and I believe the best solutions come with broad, varying and diverse input.

As I review my notes and think back about these forums, there are a handful of consistent themes – or commonalities – that are worth considering:

• First, independent optometrists take great pride in their work.  Without a doubt, you are providing the best service and quality care to your patients – beyond compare.  Despite your concerns about the evolution of our industry, there’s broad consensus and passion to find ways to stay relevant and grow your business.
• Second, lots of ECPs share common concerns about your operations, such as costs associated with overhead and acquiring new talent, especially recently graduated ODs who are entering the industry saddled with student debt.
• Last, many of you are interested in exploring ways to combine forces – pooling resources, if you will – to market yourselves more effectively, attract patients’ attention and pull them into your door.  I think the power of mass retailers’ marketing budgets is driving this.

Bottom line:  these meetings have driven a discussion about the best tools to sustain and improve independent optometry.  I want you to know that we’re listening.

Do you have ideas for preserving independent optometry?  Join the conversation.