We look at ourselves as a provider of opportunities,” said Jim McGrann, president and CEO of VSP Global, in an on-stage conversation with Vision Monday’s Marge Axelrad, senior VP, editorial director. “It’s all about getting the opportunity (VSP member) into the practice and supporting it through software, frame and lens products—however we can.”

McGrann covered a wide range of subjects in discussing the five business divisions of VSP Global that in combination will yield $5 billion in revenues this year, he said.

VSP’s core business, accounting for more than $4 billion of those revenues, is VSP Vision Care, which just marked its 60th year in business and surpassed 80 million members. McGrann said, “We’re looking ahead to the next 60 years with the same mission that we’ve had all along. We want to help people to see better and to help as many people as we can.”

McGrann noted that 85 percent of its vision care revenue is paid back to doctors. The business then is run on 10 percent of topline revenues. “For anyone who knows the insurance business, that’s a world class number,” he said.

Vision Monday’s Marge Axelrad (l) with VSP Global’s Jim McGrann, in a one-on-one conversation which also offered attendees an opportunity to pose questions.
The crowd listened intently as VSP’s Jim McGrann updated everyone about VSP Global’s business goals.
In order to grow its core business, VSP is continuing to raise awareness about the importance of an annual eye exam. “We also need to provide access to care in ways that people want it delivered,” he added.

The other VSP businesses include Marchon (frames), VSP Optics (lens and labs), Eyefinity (practice management, EHR, B-2-B portal) and Retail Development (omni-channel delivery of eyecare and eyewear). In years past, the businesses were “fairly siloed,” he said, and the goal now is to unify them to “magnify strengths and minimize weaknesses.”

Across all VSP businesses, a major focus is B-2-I, or business to individuals. “Individuals want to be treated a certain way and we’re trying to look at the marketplace and ask, for our 80 million members, how do they want eyecare and eyewear delivered? The key is to make sure all preferred channels of delivery are open and to keep doctor and patient connected in all of those channels.”

McGrann also discussed the VSP Premier program, designed to support doctors who are doing business across all VSP businesses. “Joining Premier is entirely voluntary, but we think there are enough benefits to have you want to participate,” he said. He cited findings that the program has driven 26 percent more new patients into participating practices, equating to an increase of $300,000 in new revenue per practice.

Also discussed were changes in frame reimbursements to “align more realistically with how frames are purchased,” McGrann said. He also reported on the development of onsite clinics, and on a five-location test in which VSP provides services to CVS. VSP will continue to explore emerging modes of eyecare and eyewear delivery, McGrann said, adding, “It’s good to have a seat at the table.”

As VSP looks down the road three to five to 10 years ahead, it will closely examine the growing role that new technology will play. “We all need to keep an eye on this. There is no company in the world today that is not, in some form, a technology company,” McGrann said.