VetPartners / AAHA Economic Bulletin Abstracts

With proper acknowledgment, reprints of these articles are permitted and encouraged.  Please submit your request to EconNews@VetPartners.org. 
 

June 2010 - What Role Should A Practice Have in Your Investment Portfolio? by Mark J. McGaunn, CPA, PFS, CFP

We are reminded of the unpredictability of stock and bond market returns on not only a monthly, but even a daily basis. Just look at the momentary plummeting of the Dow Jones Industrial Average (DJIA) on May 6, 2010 by 997 points. While the vast majority of investors don’t rely solely on the DJIA to anchor their own retirement, veterinary practice owners need to balance their global investment portfolio to protect it from untoward events, and manage their practice like the investment it is.  Read more...

May 2010 - Why Now Might be the Best Time to Sell a Practice by David F. King, DVM, AVA

Abstract 

Many of us know a colleague who considered selling their practices in 2009, but then decided to put it off until the economy "turns around.” Maybe they needed to hang in there a bit longer to recoup lost stock values, or perhaps they merely had an unsettled feeling about leaving their practice in these hard times.

Although there may be some validity to those concerns, there are other real concerns - both personal and professional - that may have escaped consideration.   Read more...

April 2010 - Pour Me a Drink...Half-Full, Please - the effects of unemployment on veterinary occupations by Lorraine Monheiser List, CPA, CVA and Leslie A. Mamalis, MBA, MSIT

Abstract 

Unemployment rates are at or near record highs, and the veterinary profession is certainly impacted, though fortunately not as much as other industries.  Yes some practices continue to grow and thrive, while others are bracing themselves for more bad news.  Now is your opportunity to re-evaluate staffing, protocols, systems, and procedures while you have access to the largest pool of available doctors and staff in recent history.   Read more...

March 2010 - Were You Scared by the Recession? Recovery May Be the Real Monster by Karen Simmons, CPA 

Abstract 

We all hope for smooth sailing out of a difficult 2009. Most days the Dow is back above 10,000, job losses are slowing, home prices are stabilizing and most importantly patient visits are picking up. Wait! Before you celebrate take a look at what recovery may mean for you.

During the recession the government pumped huge amounts of money into the system in order to rescue the banks. Historically this type of action would cause us to leave the recession and enter an inflationary cycle during the vigorous recovery. However, this recession is proving to not be typical. The consumer has been affected through their home values, retirement portfolios, employment and of course cash flow. Prior to the beginning of the recession many consumers were highly leveraged, making the impact of the rapid decline in home values much more severe. All indications are that this recovery will be sluggish, a gradual climb up hill rather than a fast ascent to prior highs. So what does this mean for the veterinarian?   Read more... 

February 2010 - Is the Market for Veterinary Practices Turning Around?  by Richard Goebel, DVM

Abstract 

The recession has hammered everything from jobs to housing prices to retirement savings. What about the market for veterinary practices?

AAHA's Trends Magazine talked to Dick Goebel, DVM, senior associate of Simmons & Associates Great Lakes, which specializes in veterinary practice sales and appraisals.  This article will also appear in the March issue of Trends.  Read more...

November 2009 - Cutting Costs Without Sacrificing Your Standard of Care by Jason Castner, CPA, CVA

Abstract 

Cutting costs is never the ultimate goal of a practice owner. However, whether the ultimate goal is to make millions or a comfortable living while providing exceptional care to your patients, cutting costs, or more appropriately managing costs, is a key contributing factor.

The difference between cutting and managing costs is similar to the difference between cutting and operating on a patient. In the operating room, you would not make your first incision without having reliable diagnostic information. The same rules apply to cutting costs.  Read more...

 

October 2009 - Drive Revenue Through Pricing - AAHA Veterinary Fee Reference by Richard Goebel, DVM

Abstract 

Are you tired of rationalizing your fee schedule and frustrated with seat-of-the-pants decision making? This article addresses the need for fee increases, making adjustments for “shoppable” items, making sure fee increases translate to commensurate revenue increases, common errors in fee capture, what constitutes a “fair fee,” and discussion of a valuable veterinary industry fee resource, the AAHA Veterinary Fee Reference.  Read more...

September 2009 - Compliance: Taking Quality Care to the Next Level by John Albers, DVM and Tom Carpenter, DVM

Abstract

In 2009, the American Animal Hospital Association, supported by Pfizer Animal Health, conducted a national research project, combining surveys and interviews, to quantify practice team improvement of pet care compliance and examine pet owner adherence to recommendations and direction for dispensed or prescribed medications.

This study is documented in two AAHA publications, “Compliance: Taking Quality Care to the Next Level;” and its companion publication, “Six steps to Higher Quality Patient Care.”

The improvement that many hospitals have made in compliance is just what the doctor ordered to address our current economy. Now is the time to use this information to put your practice on a path to higher quality patient care and economic success.  Read more...

August 2009 - Leaky Revenue: Capturing Discounts and Missed Charges by Karen E. Felsted, CPA, MS, DVM, CVPM

Abstract

It is not uncommon for 5-10 percent of gross revenue to be lost via discounts or missed charges in the average practice. Periodic review of discount programs and ongoing medical record audits are essential to managing this revenue drain.  Read more...
 

July 2009 - Using Metrics to Identify SWOT in Your Practice by Jason Castner, CPA, CVA

Abstract

Many practices are experiencing a drop in revenue this year for the first time in a long time (maybe ever). Even more are seeing a decline in the number of patient visits. Cash flow for the practice may not be as strong as in years past. Providing bonuses and/or annual pay increases may not be automatic any more.

Where can you go for guidance? Look within your practice’s Metrics or Key Performance Indicators (KPIs) for direction. By identifying which KPIs have the most impact on your practice’s profitability (discussed in last month’s E-bulletin), you can focus on your Strengths and Opportunities while dealing with your Weaknesses and Threats (SWOT).  Read more...

June 2009 - Is Your Practice Financially Healthy? by Richard Goebel, DVM and David McCormick, MS

Abstract

In order to continue to provide top level service and medical care, you must have a viable business. Understanding the financial health of your practice is paramount to managing and maintaining a successful operation. As the economy has slowed, and the news on television has become grim, you need to develop your plan for financial health.

Where to start? The first step in developing this plan is to understand what is to be measured (profit). The next step is to choose a method to measure your profit and answer the question: “Is your practice financially healthy?”  Read more...
 

May 2009 - Doing Well in a Tough Economy by John Albers, DVM

Abstract

Many in our profession and industry recognize that these are tough economic times, and that things may actually get worse before they get better. Moreover, the long-held belief that companion animal veterinary medicine is “recession resistant” or even “recession proof” is being tested. Indeed, while the bulk of the data available shows that practice revenues are generally still increasing, there is no doubt that growth is slowing (and declining in some cases) and that client visits have decreased.

So what should you do? There are two basic options. One, you can hunker down, stop spending on anything that is non-critical, cut staff and hours, find ways to offer less costly treatment options to your clients, demand discounts from suppliers, and cancel that planned trip to next year’s veterinary conference. Alternatively, you can take proactive steps to ensure that your practice remains successful and is well-positioned to resume strong growth as the economy improves.  Read more...