By Jamie Davis, CVPM
More people equal more revenue – an ongoing belief in veterinary medicine. The question now becomes; how do we do more with less? As we continue to navigate the labor shortage nationwide, we need to focus our energy on making the most out of the time we have in our workday and make the most of the time we have with our clients. There is no doubt that the first sentence is a truth, we will have limitations when revenue-generating teams, like our DVMs and our licensed technicians, are in shorter supply. However, it is my belief that we have more opportunities within our current team and are leaving money on the exam table frequently.
You can’t manage what you don’t measure
Having a routine and systematic approach to your data tracking is critical to maximizing revenue generation. Without this evaluation, you are unable to fully assess the health of your business. Track KPIs (Key Performance Indicators) such as gross revenue, average client transaction, client retention, number of visits, and number of new clients. Set up your dashboards with tracking for the most current period as well as a comparison to data from a year ago for the same period. You will also track the effectiveness of any sales programs you are currently running. Analyzing these metrics can help you identify areas for improvement and track the success of initiatives implemented by your team.
Power of the People
Your people are by far your most valuable asset in a veterinary hospital. The question is, how well are you leveraging that asset? Let’s for a moment look at employee worth. If you have a practice that is grossing $1 Million in revenue and has 10 employees, the average worth of each employee is $100,000 (Davis, 2023). How would you prioritize a piece of equipment with that same value? My guess is pretty highly. Take a closer look at how your team is contributing to practice profitability.
- Coordination – effective communication and coordination among team members –reduce duplication and streamline process.
- Delegation – tasks are being completed by the right people (also known as the right seat). Trying to have every team member do every skill is not always the best process. Maximize the use of skills and batching tasks for efficient workload distribution.
- Training & Development – continual training programs and strengths-based coaching that enhances skills and knowledge. The 2023 AAHA Technician Utilization Guidelines outline steps you can take right now to utilize credentialed veterinary technicians in your practice. (AAHA, 2023)
Build a sales force
Destigmatize the discussion of sales with your team. We are in a sales-based industry if we work in a for-profit business. Stop pretending like your ability to sell services is not vital to your business. Team training programs should include some type of sales training. This includes skills like cross-selling and value-selling. Cross-selling is where customers are encouraged to purchase additional projects and/or services that are related to the item they are already buying. Value-selling focuses on assisting clients in understanding how a product or service might solve their issue.
Your sales force (aka your team) should be rewarded for their efforts. Creating an incentive program based on your sales goals will help connect the money with the medicine. This requires that you design a focus or campaign and track results. A study of doctors and nurses working in public and private sectors showed that medical staff felt motivated by these rewards, which creates employee loyalty as they believe that the organization cares about their contribution and their needs at the same time (Liu & Liu, 2022).
Rule your tech
Technology should be a blessing, not a curse. Just as you leverage your team, leverage your technology. Automate as many functions as possible for client communication. This can include patient care reminders, chart documentation, client education, form completion, and payment processing. Enhancements in VOIP phone systems can allow for integration with artificial intelligence and greatly reduce time on the phone and therefore reduce the number of people needed to answer calls.
Your online store is another large opportunity to not only expand your inventory without the burden of time and expense, but the enhanced client service that comes with providing direct-to-home delivery, automatic shipments, and direct-to-clinic connection for their pet’s medications and supply needs is a must in the age of Amazon Prime.
Time is money
More specifically, your time is WORTH money. Every action you complete for a patient and/or client carries value. Make sure you are not only charging appropriately for the time spent on different acts, but make sure you are charging for your time. I’ll say that again…charge for your time! The charge structure might be the same, like bundling your consultation fee for labs into the cost of the lab test, but your average consult time is not a one-size-fits-all. Sick patient labs have a higher likelihood of longer and more involved consultations. Structure your lab fees to embrace that difference.
Clients’ calls to address their pet’s needs and further questions can be transitioned to telemedicine cases. Technician appointments for patient care services should carry a charge. Varying levels of dispensing fees for products that are special order versus those that are carried in-house. All of these are opportunities to make sure there is compensation for time spent.
In Summary
The areas where revenue is living in your hospital encompass both clinic and administrative aspects, ensuring optimal care for patients while managing resources effectively. Exploring the opportunities in your practice will verify that you are not leaving revenue on the exam room table.
About the Author
Sources:
Davis, M. (2023, September). What’s your employee value? Investopedia. https://www.investopedia.com/financial-edge/1011/whats-your-employee-value.aspx#:~:text=A%20common%20way%20to%20calculate,by%20the%20number%20of%20employees.
AAHA. (2023). 2023 Aaha Technician Utilization Guidelines. https://www.aaha.org/aaha-guidelines/2023-aaha-technician-utilization-guidelines/home/
Liu, W., & Liu, Y. (2022a). The impact of incentives on job performance, business cycle, and Population Health in Emerging Economies. Frontiers in Public Health, 9. https://doi.org/10.3389/fpubh.2021.778101