Revenue growth in March 2023 was 5.2%; this is less than that seen in the previous month and less than the average 12-month growth of about 5.4%. Essentially this growth is similar to what was seen pre-pandemic. Patient visit numbers continue to decline: -2.3% in March 2023 and about -1.6% over the last twelve months. The number of active patients also continued to decline in March 2023, and the number of lapsing patients to increase. New client numbers also fell (-9.9% for all practices.) Note that the number of workdays in March 2023 and 2022 were the same.
Mixed signals persist in the U.S. economy and inflation continues to be a challenge both for veterinary practices and pet owners. As noted in last month’s Insiders’ Insights Management Trends report, practices increased fees for both shopped and non-shopped services significantly. The Bureau of Labor Statistics Consumer Price Index showed a similar trend with the cost of veterinary services jumping from 10.3% from February 2022 to February 2023.
Pet owners are increasingly concerned about the cost of veterinary care and some are making choices to reduce or delay the care they provide, not just because of the cost of veterinary care but because of overall price increases and the related impact on their household budgets.
Last month, we talked about the importance of not only providing pet owners with alternative payment options but making sure they are aware of these choices during an economic environment such as we are experiencing now. Improving communication about the value of the services recommended is also an especially important area to focus on when pet owners are having to make tough choices about where to spend their money.
A number of myths abound regarding communication skills. The first is that communication is a personality trait and you either have it or you don’t. In reality, communication is a series of learned skills and anyone who wants to can learn them. Another myth is that experience is a good teacher of communication skills. In reality, experience alone tends to be a poor teacher of communication skills—experience just tends to reinforce habits whether those are good or bad habits! One of the next myths is that focusing on communication takes too long to be practical. This is obviously of great concern to any busy professional. In reality, there are some simple changes everyone in the practice can make in order to better communicate with clients.
Not only does good communication increase value perception; there is also strong scientific evidence in the human medical field that demonstrates the relationship between communication and more positive medical outcomes.
Those who work in a veterinary practice spend so much time immersed in pet care that it is easy to forget not every pet owner knows what we know. The lack of knowledge is truly alarming and because of it, many pets aren’t getting even the minimum level of care they need.
Focus on how doctors, technicians, and other staff members talk to clients. What is the client going to think if a veterinarian says to the owner of an itchy dog: “There is allergy testing if you really want to do that” or the technician says to the owner of a pet with terrible teeth: “At some point, you might want to get this dental done, it’s just a suggestion.” The client is probably not going to follow the recommendation because the team member hasn’t made it crystal clear that this recommendation is critical to the pet’s health.
A phrase such as “Your dog needs to be on heartworm preventive” is just a starting point. Clients also need to be told what heartworm disease is and the benefits to them and the pet of regular prevention. A more effective conversation would start with this: “Your dog needs to be on heartworm preventive every month in order to keep him from getting heartworm disease. Heartworm disease is a very serious and sometimes deadly condition. Dogs get it from mosquitoes and this disease is diagnosed regularly in this area. It can be treated when diagnosed but the treatment is expensive and risky. Prevention is a much easier and less expensive option.” It takes a few more seconds to say this but not much and now the client has the right information to make a good decision for their pet.
If pet owners don’t get the information they need and want from the veterinary practice team in your practice, they will go elsewhere. What is one thing everyone can do to make sure pet owners get their questions answered? ASK! The exact words don’t matter; any of those below will work. Asking, both when clients check in and when they leave, is what is important:
• Is there anything else going on with Fluffy that you have questions about?
• Did you have any questions about what we have discussed?
• Do you have any other concerns?
• Are there any other questions you have?
• Can I do anything else for you?
Pet owners always have a choice about whether to provide veterinary care at all and where to take their pets for care; the more the practice can do to not only provide real value but clearly demonstrate it, the more likely it is pet owners will take good care of their pets.
➤ Download Insiders' Insights - KPI, April 2023 Report
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Karen E. Felsted, CPA, MS, DVM, CVPM, CVA of PantheraT Veterinary Management Consulting, www.PantheraT.com, provide data review and commentary.
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