< Ophthalmic Council 2008

Vision Service Plan (VSP)

Go to www.vsp.com

Vision Service Plan (VSP) is a GOLD level sponsor of the American Optometric Association.

Vision Service Plan (VSP)

sponsors the following AOA programs:

As of February 2008

Optometry's Meeting

AOA Education Theater
Breakfast Seminar

Other Programs

Optometry 2020 Summits
2008 Healthy Eyes Healthy People™ Grants

VSP and Vision One Credit Union together have developed an innovative loan program to help optometrists buy all or part of existing private practices.

“Banks tend to overlook our industry,” said Bob Schultz, president and CEO of Vision One. “We decided that together we could provide beneficial options to transition practice ownership.”

VSP funds are used to help doctors who meet Vision One loan standards, but do not qualify due to lack of equity or collateral. Applicants must be VSP network doctors. VSP does not benefit from the program. Their interest in providing this service to VSP doctors is to contribute to the longevity of private practice and increase the number of qualified buyers. VSP’s role is to provide the funds; Vision One administers them and makes the credit qualification decisions.

“We saw the need in the marketplace for independent optometrists trying to get into private practice ownership,” said Schultz. “We have designed a product to benefit first time practice purchasers, which is unavailable from a regular bank.”

Vision One offers full service banking exclusively to private practice optometrists and companies that support independent optometry. VSP has provided $5 million in loan funds, which will be replenished as loans are repaid. All loan payments received will be returned to the program fund and used to secure future loans for qualified doctors interested in financial assistance toward private practice ownership.

Doctors interested in partnering in or owning a private practice can benefit from this program, as well as practice owners who would like to add a partner or sell their practices, but can’t find someone with the proper financial backing.

The program is designed to help new and experienced doctors who dream of owning a practice, but who lack the equity or other financial support necessary to qualify for and purchase their practice.

“For new eye care professionals just getting out of school, this looks really attractive, but it’s also for those with existing practices,” said Pat McNeil, VSP public relations manager.

The program features three loan types, including:

Practice buy-ins. Unique in eye care, these loans provide qualifying optometrists with the funds necessary to build their future by buying an ownership interest in an existing practice (partnership or corporation).
Practice buy-outs. Qualifying optometrists may use existing Vision One loan programs in conjunction with VSP funds to purchase an existing practice.
Down payments. Doctors needing help with a down payment to buy all or part of an existing practice may qualify for this program.

Schultz stressed the benefits of the practice buy-in loan option, which allows a senior partner to line up a successor and sell them a fractional interest in a practice while retaining control.

“This affords the seller the opportunity to phase out gracefully over time,” he said.

The loan program has already helped two dozen doctors and is available in nine states. VSP and Vision One are working to fast-track availability in states impacted by Hurricane Katrina.