This information to help guide our IPA Members future profitability is from IECP the national organization of 5,000 ODs, we are earning ownership in by paying our monthly dues: (text excerpt from email by Reid Nelson)
TRENDS AND CHALLENGES: I have been thinking about the trends in eye care, the major players and about the overwhelming feeling many have that optometry must participate in the new forms of medical care delivery coming down the road, all stimulated by ACA, ACOs and the re-emergence of capitation.
IECP MEDICAL PLAN CHOICES THIS YEAR: IECP has been deliberate and thoughtful in picking up contracts this year. We have secured 4, all at attractive “fee for service” arrangements, no capitation. When the contracts are fully operational the 4 contracts will exceed 400,000 lives.
WHERE OPTOMETRY’S PROFITS COME FROM: Please look at the following chart (BELOW). We think that addressing Cost of Goods (VCDlabs) and routine vision plans should be as important as any strategy with medical but only medical at fair and fixed reimbursement rates.
FOLLOW THE SUCCESSFUL MONEY MAKERS: Remember, the money is in the materials – follow the money trail. , Why aren’t EyeMed and VSP make moves in the ACO and Capitated care market? Why aren’t Costco and Walmart making moves into that market space? Something to think about!