Gross income in a veterinary practice can be broadly classified into two categories: active income and passive income.
Gross income in a veterinary practice can be broadly classified into two categories: Active income and Passive income.
Active income is income that can only be generated by a veterinarian.
Examples of veterinary services that require the doctor's direct, full-time involvement include:
In veterinary medicine, it's critically important that doctors maximize their time and talent by generating income that only they can generate – active income. These are the highest-value, most highly remunerative activities which require a license to practice veterinary medicine.
Many revenue producing products and services in a veterinary practice however, do not require the veterinarian's direct, full-time involvement. Passive income is income that can be produced without the veterinarian's direct, full-time involvement. Practice income generated by members of the health care team is termed passive income.
A significant economic problem exists in practices where veterinarians spend too much time producing passive income (when they could/should be producing active income). What tasks or activities in your practice currently performed by a veterinarian, could be delegated to other members of the veterinary health care team? Consider organizing a team meeting to "brainstorm" lists of products and procedures that could (should) be performed by non-veterinary support personnel. Alternatively, for one week, have each member of the veterinary health care team pay close attention to the activities of the doctors. Note all the things done by a veterinarian that could have been done by a health care team member. Share your lists with one-another and with the veterinarians, the goal being to identify ways to shift those activities to the support team.
Dramatic increases in practice income are a function of how well the practice is positioned to generate active and passive income. In a practice with a pet-centered philosophy, the veterinary health care team will be an integral part of practice productivity. Effective use of the time and talents of veterinary health care team members cannot be overemphasized.
Compliance is a most-serious quality of care issue. Today, millions of cats and dogs do not receive the level of care you believe is best for them. The opportunity to provide more and better care to your patients is omnipresent. The business opportunity inherent in improved compliance is staggering. The untapped potential in your patient base may be double your current production
Most practice teams judge their level of compliance by "gut feel" rather than measuring actual compliance rates, and they think their compliance rates are quite high. But a comprehensive, in-depth study by AAHA showed that in almost every single case, the level of compliance is significantly lower than what practice teams believe (AAHA's "The Path to High-Quality Care – Practical Tips for Improving Compliance," copyright 2003, back cover)."
The profession's failure to consistently and confidently make recommendations – with conviction – for what is truly in the pet's best interest has resulted in low compliance. The quality of care delivered today is significantly less than what is possible. My personal challenge is that within 48 hours of returning home, you would take at least one action step to begin improving compliance in your practice. Pets benefit, clients benefit, and the entire veterinary health care team benefit!
Other topics in this section will include
Well-Managed Practice Study – Wutchiett, Tumblin & Associates (Advanstar)
Influence – Robert Cialdini, PhD
The Path to High-Quality Care – AAHA Press