Shown below is the updated graphic we’ve been sharing each month; this includes the May 2022 VetSuccess revenue metrics shown on the Insiders’ Insights KPI dashboard (https://www.vhma.org/resources/insider-insights) as well as placeholders for other related metrics that should also be reviewed regularly in order to get a full picture of what’s going on in a practice.
In order to put this in perspective, here is some of the same information for the last year showing the overall trends:
Practice revenue growth was much stronger in May 2022 compared to the prior two months. The number of workdays in May 2022 was the same as in May 2021 so growth is less likely to be influenced by the number of workdays and workhours between the two periods. Patient visit numbers continue to decline; this implies that the revenue growth is either due to fee increases or pet owners electing a broader spectrum of care. (Note that data from an earlier 2022 Insiders’ Insights report indicated much larger fee increases in 2022 than in previous years which may be one of the reasons for the increased revenue growth.) New client numbers are seeing an ongoing decline; they have fallen each month over the last year.
The change that most stood out in this month’s data was that related to the lapsing patient count. Lapsing patients as defined by VetSuccess are those whose last medical service was 14-18 months ago. In May 2022 the number of patients with lapsed services grew very significantly. Looking back over the last couple of years, it is clear we started to see significant increases in this metric late in 2021; prior to that growth generally ranged from 2-6% in most months. During the last seven months, however, the number of lapsing patients grew over 10% in most months, with April showing 14.2% growth and in May, a whopping 21.4%! I personally believe the cut off for lapsing patients should be 12 months since the wellness recommendations (vaccines, heartworm tests, etc.) most practices make are “once a year.” Using 14 months as the cutoff means there are really a larger number of “late” clients than is shown in these numbers.
We don’t know for sure why this is happening, but some possibilities include:
- Some number of the clients who switched practices during the pandemic because they couldn’t get an appointment at the practice they normally visited have not stayed with the new practice
- Clients are concerned about the cost of veterinary care either due to the increases in this care specifically or because of the overall inflation impact on their household budgets and are postponing care
- The number of appointments available has declined possibly due to the difficulties in hiring
This will be an interesting figure to track going forward.
Of course, the figures above are averages and what is going on in other practices may not be the same as in yours.
In the last few months, we have taken a deep dive into key revenue metrics practices should review regularly such as new clients, patient visits and doctor productivity. This month we’re going to switch focus a little. We typically consider strong revenue growth to be a good thing, but the increased workloads seen in the pandemic years have taken a real toll on employees mentally and physically.
Data from the August 2021 VHMA Insiders’ Insights survey showed:
- 65% of the survey respondents (primarily practice managers/administrators) “always” or “usually” check emails outside of regular work hours
- 95% (!) take calls or text messages outside of regular work hours
- 28% “always” or “usually” work on weekends with another 36% saying they “sometimes” do
As we move into the summer, often a prime vacation time, the data shows the same trend. 32% of the respondents say they “always” or “usually” work during vacation time with another 30% saying they sometimes do.
Of course, this isn’t healthy if it happens regularly; there are all sorts of studies that make it clear there are significant physical and mental benefits to having a real break from work.
What can the management team do to help all employees get the work break they need and deserve? First of all, incorporate a respect for time off into your practice culture. Next, prepare a backup plan for how work will get done when an employee is gone for any reason—vacation, family emergency, illness, or because it’s outside of normal work hours. List all of the significant tasks each employee (including managers!) does and identify which ones have to be done even if an employee is out of the office.
Identify the best person/persons to take over each of these tasks when an employee is gone. Obviously, you need to choose the right people based on their ability to do the tasks but must also take into account their normal job responsibilities. Overloading your most competent employees is a bad idea. Take the time to train the chosen individuals if they don’t know how to do the things that must be done.
Make sure someone knows how to handle potential emergencies—computer crashes, building maintenance issues, etc.
Talk to your boss about how you propose your own work will be handled when you are out of the office and share any concerns you have about things that may come up while you are gone. Look for a solution that still allows you to get the break you need. Planning in advance will make it much easier for you and others to take off without worry.
➤ Download Insiders' Insights - KPI, June 2022 Report
➤ VHMA Members can access the dashboard to drill down by region, species, and practice size filters, access the interactive KPI dashboard
Data review and commentary is provided by Karen E. Felsted, CPA, MS, DVM, CVPM, CVA of PantheraT Veterinary Management Consulting, www.PantheraT.com.
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