Further resources
• Thinking of building or renovating? Visit dvm360.com/hd and register for the next HospitalDesign360 conference.
• Thinking of buying new equipment? Find out if you should rush to buy before Dec. 31.
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Decision Data: Build, renovate or buy new veterinary equipment?
A dive into data yields numbers on capital improvements and investments different-sized veterinary practices made and how satisfied the owners and managers were with them.
It can often be difficult for a veterinary practice owner or manager to decide how to change their business model, when to add services and how to adjust for changing times. The team at dvm360 has been working with two of the sharpest veterinary analysts around (John Volk and Dr. Karen Felsted) to examine major changes practices have made and how happy the decision-makers were when all was said and done.
For the next few months, we'll be sharing results from their study as well as resources and commentary to help you make a decision as a practice owner or manager-or make a plan happen once you've decided.
This week, we look at the question of capital improvements or investments.
NOTE: Categories are based on the survey question, “What were your practice's gross revenues in 2016?” and questions about 2017 behavior and decisions.
Percentage of practices that made capital improvement or investment decisions
| Practices with gross revenue of ... | Percentage |
| Less than $500,000 | 41% |
| $500,000-$999,000 | 50% |
| $1 million-$1.5 million | 51% |
| $1.5 million-$2 million | 49% |
| $2 million-$3 million | 56% |
| $3 million-$5 million | 68% |
| $5 million or more | 56% |
Source: dvm360 Decisions Survey; Dr. Karen Felsted of PantheraT Consulting; John Volk of Brakke Consulting
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Capital improvement or investments made
| Bought practice | Percentage |
| Less than $500,000 | 7% |
| $500,000-$999,000 | 4% |
| $1 million-$1.5 million | 3% |
| $1.5 million-$2 million | 0 |
| $2 million-$3 million | 4% |
| $3 million-$5 million | 8% |
| $5 million or more | 7% |
| Built/renovated practice | |
| Less than $500,000 | 22% |
| $500,000-$999,000 | 21% |
| $1 million-$1.5 million | 26% |
| $1.5 million-$2 million | 24% |
| $2 million-$3 million | 42% |
| $3 million-$5 million | 40% |
| $5 million or more | 53% |
| Bought new/replacement equipment | |
| Less than $500,000 | 88% |
| $500,000-$999,000 | 90% |
| $1 million-$1.5 million | 91% |
| $1.5 million-$2 million | 87% |
| $2 million-$3 million | 81% |
| $3 million-$5 million | 75% |
| $5 million or more | 73% |
Source: dvm360 Decisions Survey; Dr. Karen Felsted of PantheraT Consulting; John Volk of Brakke Consulting
No. 1 reason for capital improvement or investment*
| To increase quality of medical care | 41% |
| Practice growth | 18% |
| To increase efficiency | 14% |
| Increased demand for services | 11% |
| Added services that needed equipment | 9% |
| Outgrew facility | 4% |
| To position practice for sale | 2% |
*Only responses of more than 1% were included.
Source: dvm360 Decisions Survey; Dr. Karen Felsted of PantheraT Consulting; John Volk of Brakke Consulting
No. 1 benefit seen after capital improvement or investment*
| Increased quality of medical care | 43% |
| Increased efficiency | 18% |
| Better working conditions | 13% |
| Improved client service | 11% |
| Additional revenue | 4% |
| Positive client feedback | 3% |
| More competitive in marketplace | 3% |
| Improved profitability | 2% |
| No benefits | 3% |
*Only responses of more than 1% were included.
Source: dvm360 Decisions Survey; Dr. Karen Felsted of PantheraT Consulting; John Volk of Brakke Consulting
Satisfaction with decision
| Extremely satisfied | 43% |
| Moderately satisfied | 29% |
| Satisfied | 26% |
| Dissatisfied | 1% |
| Moderately dissatisfied | <1% |
| Extremely dissatisfied | <1% |
Source: dvm360 Decisions Survey; Dr. Karen Felsted of PantheraT Consulting; John Volk of Brakke Consulting
For money's sake
We also asked practice owners and managers if the capital investment was made for tax purposes or availability of excess cash? The answer is, “Yup.”
- 58% for for tax purposes
- 62% to use excess cash.
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