State of the Profession 2006

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State of the Profession 2006

• Research Objectives
• Document professional/economic issues facing
  veterinarians.
• Identify trends within the delivery of veterinary
  services today and in the future.
• Evaluate the relationship between veterinarians
  and clients.
• ? Benchmark similar survey results conducted
  in 2003, 2000 and 1997.

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Methodology
Maximum Statistical Error _at_ 95 Confidence Level
3.9 - Practice Management survey 4.2 -
Staffing, Career, and Salary survey
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Response Rate
Effective net launch Submittals Response Rate
Practice Management survey 4,841 625 13
Staffing, Career, and Salary survey 4,695 564 12
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About the Respondents
Year of Graduation
Practice Management Survey
Staffing, Career Survey
6
About the Respondents
Practice Management Survey
Staffing, Career Survey
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About the Respondents
Practice Management Survey
Staffing, Career Survey
Practice Type
Position in Practice
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Competition
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The Competitive Pulse
Q How competitive do you consider the market for
veterinary services in the region in which you
practice?
2006
Practice Management Survey
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Moving in
Q How many practices (within 5 miles) have
opened in the past 3 years?
2006
Practice Management Survey
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Whos the Competition?
Q From which of the following sources do you
feel competitive business pressure?
Practice Management Survey
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The One Source
Q Which one source poses the most significant
challenge to the success of your practice?
Practice Management Survey
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Sizing up the Competition
Q Are your facilities and medical equipment
better, worse or about the same as other
practices in your area?
2006
Practice Management Survey
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Measuring up?
Q Are your facilities and medical equipment
better, worse or about the same as other
practices in your area?
2006
Annual gross
Practice Management Survey
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Corporate Practice Attitudes
Q How do you feel about corporate ownership and
management of veterinary practice, both for the
profession as a whole, and for you personally as
an opportunity or career direction?
For the profession
For you personally
  1997 2000 2003 2006
Strongly in Favor 4 3 4 4
Somewhat in Favor 8 14 8 8
Neutral 14 17 24 28
Somewhat Opposed 22 21 25 25
Strongly Opposed 41 45 39 35
Dont Know Enough to Evaluate 11 N/A N/A N/A
  1997 2000 2003 2006
Strongly in Favor 3 3 4 4
Somewhat in Favor 10 17 11 9
Neutral 17 21 32 36
Somewhat Opposed 29 31 30 33
Strongly Opposed 29 28 23 19
Dont Know Enough to Evaluate 12 N/A N/A N/A
Practice Management Survey
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Market/Community Position
Q Which statement most closely reflects your
practice and client base?
  1997 2000 2003 2006
     
We take all paying clients, providing them with whatever level of service they request/require. 74 71 69 64
We offer primarily high-quality diagnostic medicine and surgery, and tend to have clients for whom cost of treatment is not a major factor. 19 23 25 31
We primarily provide basic medical services, price our medical service low and attract cost-conscious pet owners. 7 6 6 5
Practice Management Survey
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Service Mix
Q Are you providing more, about the same or less
of each service listed compared to 3 years ago?
Practice Management Survey
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Referrals Edge Higher
Q How many cases do you refer to specialists
outside your practice in an average month? (check
only one)
Practice Management Survey
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Common Referrals
Q What type(s) of cases do you usually refer?
Practice Management Survey
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Euthanasia
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Stop-Treatment Point
Q Estimate the total dollar amount at which most
of your clients would refuse or stop treatment of
pets ________.
2006 average 1,451 2003 average 961 2000
average 795 1997 average 576
Practice Management Survey
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Stop-Treatment Point
Q Estimate the total dollar amount at which most
of your clients would refuse or stop treatment of
pets ________.
Practice Management Survey
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The Cost Factor
Q Over the past 12 months, to what extent has
cost affected your clients decisions to treat
(or continue treatment of) sick or injured
animals? (Please assign a percentage.)
  1997 2000 2003 2006
Cases for which cost was not a factor at all 25 30 26 31
Cases for which cost was a factor, but client agreed to recommended treatment 35 31 34 32
Cases for which cost limited treatment 27 25 25 23
Cases for which cost was the primary reason for no treatment 14 14 14 14
Practice Management Survey
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Euthanasia
Q How many animals does your practice euthanize
in an average month?
 
CATS
 
 
DOGS
 
 
2006
2003
2000
1997
2006
2003
2000
1997
 
5.4
6.7
8.3
5.1
6.6
8.5
10.9
7.4
AVERAGE
Practice Management Survey
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Talking about Euthanasia
Q What percent of euthanasias are
doctor-suggested or client requested?
Q Who in the practice talks to clients about
euthanasia?
Practice Management Survey
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Life and Death Decisions
Q In your estimation, when do clients opt to
euthanize sick animals
Practice Management Survey
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Euthanizing Healthy Animals
Q What are the primary reasons behind requests
to euthanize healthy animals? (multiple answers
given)
Practice Management Survey
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Relinquishment Problems

• Shelters euthanize and estimated
  4 million to 6 million pets a year.
• Some high-intake shelters can take in 30,000
  animals a year.
• Nationally, more than 55 percent of all intakes
  are believed to be euthanized.

Source National Council on Pet Population Study
Policy
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Pet Health Insurance
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Pet Health Insurance Growth
Q Do you accept pet health insurance?
Practice Management Survey
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Third-Party System Acceptance
Q If yes, do you actively recommend it? Base 502
Practice Management Survey
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Third-Party Payment Resistance
Q If you dont actively recommend it, why not?
(write in) Base 221
Practice Management Survey
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Attitudes About Insurance
Q Would you like to see wider use of pet health
insurance by pet owners?
Practice Management Survey
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Revenue Mix/Cost Pressures
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Most Pressing Issue
Q What is the most pressing issue facing
veterinary medicine? (Please check one)
Staffing, Career, Salary Survey
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Number of Patients
2006
2006 average 68 patients personally seen per
week. Steady erosion noted in one-doctor
practices from 82 per week in 1997 to 67 in 2006.
Staffing, Career, Salary Survey
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Average Client Transactions
Q What is your current average client
transaction?
2006 average 106 2003 average 98 2000
average 85 1997 average 72
Practice Management Survey
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Average Client Transactionby practice size
1 doctor practice
2-3 doctor practice
4 doctor practice
Staffing, Career, Salary Survey
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Active Client Base
Q Over the past three years, how has the size of
your active client base changed?
2006
Staffing, Career, Salary Survey
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Finance Predictions
Q Do you anticipate your practice gross will
increase or decrease annually over the next three
years?
If you anticipate change, by what percentage will
your practice gross revenue increase?
Average 10.9
If you anticipate change, by what percentage will
your practice gross revenue decrease?
Average 9.3
Staffing, Career, Salary Survey
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Net Revenue on the Rise
Q Were your 2005 net practice revenues greater
than, about the same as or less than 2004
revenues?
Q Has your local economy influenced practice
revenue?
2006 personal income average 83,342 (Management
survey average 89,907)
Staffing, Career, Salary Survey
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Veterinary Service Mix
Q Approximately what percent of your practices
annual gross comes from each of the following
categories, and where do you anticipate these
percentages will be in 3 years?
  Percentage of Practice Annual Gross Revenue Prediction of Percentages 3 Years from Now
Annual Exams 17.3 18.0
Vaccinations 13.7 10.6
Diagnostics 19.0 21.0
Surgery 18.1 19.0
Non-invasive procedures 10.2 11.1
PRODUCT SALES
Heartworm product sales 6.9 6.0
Flea tick product sales 6.6 5.8
Pet food product sales 5.0 4.9
Pharmaceuticals/biologicals not included above 13.0 12.3
Other product sales 3.6 3.6
Staffing, Career, Salary Survey
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Changing Vaccine Protocol
Q If requested, will you provide just the
vaccination with no exam or just a cursory exam?
2006
1997
Staffing, Career, Salary Survey
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Changing Vaccine Protocol
Q How do you price vaccinations one charge for
vaccine, separate charge for exam or one price
for both?
Staffing, Career, Salary Survey
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Mark-ups Vary
Q What is your usual mark-up to clients on each
of the following product categories?
Product 1997 2000 2003 2006
Vaccines / biologicals 373 276 244 143
Other Pharmaceuticals 115 124 122 116
Heartworm preventive     98 81
Flea control products 104 97 94 78
Therapeutic pet foods 37 41 38 48
Premium pet foods 37 37 34 46
Pet supplies   82 87 75
Staffing, Career, Salary Survey
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Percent mark-up on vaccines
2006
Staffing, Career, Salary Survey
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Staffing/Retention
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Greatest Professional Concern
Q What is your greatest professional concern?
Staffing, Career, Salary Survey
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Measuring Workload
Q How do you perceive your current workload
demands?
Average work week 45.8 hours
Q How many hours do you work in an average week?
Staffing, Career, Salary Survey
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Work/Life Balance
Q Is this more, less or about the same number of
hours you worked in the past?
Staffing, Career, Salary Survey
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Staff Turnover
Q In regard to staff turnover, how many existing
positions were filled in 2005?
Average 3.1 Positions Filled
Staffing, Career, Salary Survey
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Technician Turnover
Q On average, how long do certified veterinary
technicians typically stay employed with your
practice?
Average 5.2 Years
Staffing, Career, Salary Survey
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Technician Duties
Q What procedures would you feel comfortable
allowing a certified veterinary technician to
perform if accepted by your veterinary state
board?
Staffing, Career, Salary Survey
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Response to Client Complaints
Q Who responds to client concerns/complaints
about the practices delivery of medical care?
Staffing, Career, Salary Survey
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Finding Qualified Help
Q Can you find qualified technicians in the
area in which you practice?
Q Can you find a qualified associate
veterinarian in the area in which you practice?
Staffing, Career, Salary Survey
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Finding Qualified Help
Q If yes, how many full-time and part-time
veterinarians does your practice plan to hire?
Q Does your practice plan to hire additional
veterinarians in the next 2 years?
BASE 287
Average 1.3 Full-Time
Staffing, Career, Salary Survey
Average 1.3 Part-Time
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Hiring Trends
Q How many new positions were created in 2005?
Average 1.2 New Positions Created
Staffing, Career, Salary Survey
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Career Satisfaction
Q Do you intend to stay in private practice your
entire professional career?
In 1997 85 percent reported they would stay in
private veterinary practice their entire
professional career.
Staffing, Career, Salary Survey
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