Benchmarks 2016 shows strong revenue growth, higher staff levels
Annual report from WTA Veterinary Consulting and Veterinary Economics examines financial performance of 100 top-performing veterinary practices.
According to Benchmarks 2016: A Study of Well-Managed Practices, released in August 2016 during CVC Kansas City, revenue growth among top-performing veterinary practices is up an average of 7 percent over 2015 reports. The number of transactions per veterinary hospital has also increased, with total doctor and nondoctor transactions 36 percent higher than last year.
If you want to be one of the best, there's no need to dream it up yourself.
You spend all kinds of time and energy healing animals and keeping clients happy. But you know you need to focus on those other feel-good things ... like increased revenue, better leadership and a practice that runs smoothly.
And you think you have to figure that out all by yourself.
Guess what, dear reader? You don't. You get your hands on Benchmarks 2016: A Study of Well-Managed Practices. And you let those all-star practices-the ones that provide top-notch animal care while making serious bank-show you the way.
Benchmarks 2016 has action steps to ...
> increase profits (and client and patient benefits through communication)
> fuse leadership and management (for a team-based culture with empowered employees)
> take advantage of technology (developing your goals and mapping out a strategy)
> get ready for transition (by prepping yourself, your practice and your buyer to ensure your practice's legacy)
“Well-Managed Practice owners attribute the revenue growth, in part, to getting more efficient and productive,” states Denise Tumblin, CPA, primary author of Benchmarks 2016 and owner of WTA Veterinary Consulting (formerly Wutchiett Tumblin and Associates), in the executive summary. One possible explanation may be rising staff-to-doctor ratios, which this year increased to 4.7 team members per doctor, up from the 4-to-1 ratio that held steady for many years previously, the report states.
Specifically, medical revenue in Well-Managed Practices is up 6 percent this year (from $582,000 to $614,700), and diets and other revenue is up 22 percent (from $66,200 to $80,500). Doctor-provided transactions are up 31 percent, from 2,900 to 3,800, while prescription refills and other nondoctor transactions are up 42 percent, from 2,400 to 3,400.
In addition to a detailed look at revenue findings from the 100 practices studied in Benchmarks 2016, the report also includes chapters on veterinary leadership, boosting ROI through use of technology, and transition planning for sellers and buyers of veterinary practices. All chapters contain tools and exercises designed to help readers maximize the performance of their own hospitals.
To be considered for participation in the Well-Managed Practice study, a practice had to meet the following criteria:
- Patients come first.
- The practice runs efficiently.
- Practice owners enjoy practicing medicine.
- Practice owners foster a culture of respect.
“The idea is that by exploring how these top-notch performers practice high-quality medicine, energize team members and generate profits, you'll be able to emulate their success,” states the introduction to Benchmarks 2016.
More information is available at dvm360.com/benchmarks2016.