It takes a special kind of passion for one to become a veterinarian. Their practices are unique in the medical profession, given that most of their patients have four legs and no insurance. Vets go through the years of education and training required for their profession fueled by the desire to treat the ones we love who don’t have a voice. While their practices are different in some regards, at the end of the day clinic owners are running a business – one with its own unique benchmarks, goals, and financial metrics.
Professional Services for Vets in Private Practice
What would it take to motivate you to think about how much something you’re not doing is costing you? Have you ever stopped to consider how small inefficiencies affect your clinic? Inefficiencies such as patient no-shows, failure to return phone calls, slow processing of insurance claims, employees discounting services, and low new-to-return or infrequent-to-regular patient conversion percentages can cost a veterinary practice thousands of dollars each year. These may seem like small matters, something to be handled when you aren’t so busy; but have you ever analyzed the dollar amount lost because you were just too busy?
Traditional tax and accounting services barely skim the surface of the needs a veterinary office has. Our firm understands the amount of time and dedication it takes to building a successful practice, and we provide several fee-based, industry-specific consulting services to help you understand your financial position. True financial consulting involves in-depth benchmarking of a practice’s Key Performance Indicators (KPIs) to determine areas of inefficiency and acts as a foundation for measuring the progress made toward reducing inefficiencies to meet an organization’s goals.
Are the treatment fees too low? Is the practice spending excessive amounts of money on unnecessary overhead expenses? Are the collections timely and adequate? How does my practice stack up against the competition? These are all questions a vet needs to ask that industry benchmarking can answer. If you don’t benchmark your practice against other veterinary practices, and against the goals you’ve set, how will you know which areas you need to improve? Regardless of your goal, we can find the causes of inefficiency and work with you to determine what the cost is to your practice in dollars, and point you in the direction to increase productivity and revenue.
Some of the vets we’ve worked with are either in the beginning stages of their career, or are looking to advance their career by partnering with an established veterinarian. Other new veterinarians choose to start their career at an animal hospital or clinic, where the financial side of the practice is handled by another owner or corporate accounting department. This is a great place to start, because it allows a new vet to spend more time on patient care without the hassle of bookkeeping, accounting, or other tedious financial paperwork. But what if you could have that kind of convenience in your own practice, or as a partner in an established veterinary clinic?
On that note, if such an opportunity existed, how would you value a practice to determine wage-splitting? Is it always 50/50 in a partnership? These are questions for both a vet who is considering partnering with an established firm, and for a seasoned doctor who is considering expanding his or her practice. If you already have an established veterinary career and are thinking about bringing on a new doctor or medical professional to help your practice continue to grow and succeed, some of the same services we offer new vets from the buyer-side perspective can be taken advantage of from a seller-side perspective. Based on the activities a new partner will be performing, we can assess the value of those activities to the practice and help devise a customized plan for dividing income between partners. This service can also be used when dissolving a partnership as a veterinarian with a stake in the firm transitions out of the practice.
Let Us Serve You
Just one consultation is all it will take for you to understand the value our firm can add to your veterinary career. We would be happy to serve you by scheduling a free initial consultation to discuss the financial statements for the practice, and to determine if our firm would be a good fit for the needs of your clinic. For more information about the specific services Parkhurst & Associates offers, or to learn how we can help you save money on taxes, better understand the financial side of a veterinary clinic, or grow your practice by correcting inefficiencies give us a call at 512.582.7500. We look forward to serving you!