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State of the Profession 2006Research 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.
Methodology
April 6- May 4th, 2006Field Time:
60 pre-paid $25 Visa gift cards. One reminder e-mailed to all individuals who had not responded to the initial e-mail invitation.
Incentives:
Exclusive small animal, predominantly small animal, and mixed animal practices from DVM Newsmagazine’s circulation.
Sample:
DVM Newsmagazine and Advanstar Communications Research Services designed two surveys. Each used an online methodology.
Surveys:
Maximum Statistical Error @ 95% Confidence Level:+3.9% - Practice Management survey +4.2% - Staffing, Career, and Salary survey
Response Rate
Effective net launch
Submittals
Response Rate
Practice Management survey
4,841 625 13%
Staffing, Career, and Salary survey
4,695 564 12%
About the Respondents
19.4%
29.0%
25.4%
20.1%
4.5%
1.3%
0.4%
0% 10% 20% 30%
2000 to present
1990-1999
1980-1989
1970-1979
1960-1969
1950-1959
1949 or earlier
17.3%
29.7%
26.1%
19.7%
5.8%
1.3%
0.2%
0% 10% 20% 30%
2000 to present
1990-1999
1980-1989
1970-1979
1960-1969
1950-1959
1949 or earlier
Practice Management Survey Staffing, Career Survey
Year of Graduation
50.8%49.2% Male
Female
50.4%49.6% Male
Female
Practice Management Survey Staffing, Career Survey
About the Respondents
About the RespondentsPractice Management Survey Staffing, Career Survey
5.9%
10.8%
83.3%
0% 50% 100%
Mixed
Predominantlysmall animal
Exclusivesmall animal
9.3%
11.8%
79.0%
0% 50% 100%
Mixed
Predominantlysmall animal
Exclusivesmall animal
3.7%
5.7%
40.6%
50.0%
0% 20% 40% 60%
Other
Partner
Associate/ employeeveterinarian
Owner
5.6%
9.5%
34.3%
50.6%
0% 20% 40% 60%
Other
Partner
Associate/ employeeveterinarian
Owner
Position in Practice
Practice Type
Competition
The Competitive Pulse
2006
45%51%4%
Highly Competitive
Somewhat Competitive
Not at all Competitive
Q: How competitive do you consider the market for veterinary services in the region in which you practice?
Practice Management Survey
Moving inQ: How many practices (within 5 miles) have opened in the past 3 years?
Practice Management Survey
2%3% 1%9%
59%27%
None 1 2 3 4 5+
2006
Who’s the Competition?Q: From which of the following sources do you feel competitive business pressure?
Practice Management Survey
10%
13%
27%
27%
50%
8%
16%
17%
21%
24%
62%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Mobile clinics
Corporate practices, not associated w/ superstores
Specialists
Humane societies/shelters
Pet superstores
Practices associated with pet superstores
Vaccination clinics
Larger full service veterinary hospitals
Spay/neuter clinics
Traditional veterinary clinics
Internet sales web sites
2006
The One SourceQ: Which one source poses the most significant challenge to the success of your practice?
Practice Management Survey
1%
2%
3%
3%
3%
4%
5%
6%
15%
24%
28%
0% 10% 20% 30% 40%
Mobile clinics
Pet superstores
Corporate practices, not associated w/ superstores
Humane societies/ shelters
Spay/neuter clinics
Vaccination clinics
Practices associated with pet superstores
Specialists
Larger full service veterinary hospitals
Internet sales web sites
Traditional veterinary clinics
Sizing up the Competition
2006
Q: Are your facilities and medical equipment better, worse or about the same as other practices in your area?
Practice Management Survey
50%7%43%
Better
Worse
About the Same
Measuring up?
2006
Q: Are your facilities and medical equipment better, worse or about the same as other practices in your area?
Practice Management Survey
0% 20% 40% 60% 80% 100%
$1,750,000+
$1,500,000-$1,749,999
$1,250,000-$1,499,999
$1,000,000-$1,249,999
$750,000-$999,999
$500,000-$749,999
$250,000-$499,999
<$249,999
Better
Annual gross
Corporate Practice Attitudes
Practice Management Survey
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?
1997
2000
2003
2006
Strongly in Favor 4% 3% 4% 4%
Somewhat in Favor 8%
14% 8% 8%
Neutral14
%17
% 24% 28%
Somewhat Opposed
22%
21% 25% 25%
Strongly Opposed
41%
45% 39% 35%
Don’t Know Enough to Evaluate
11% N/A N/A N/A
For you personally For the profession
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%
Don’t Know Enough to Evaluate
12%
N/A N/A N/A
Market/Community Position
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
Q: Which statement most closely reflects your practice and client base?
Service Mix
Practice Management Survey
Q: Are you providing more, about the same or less of each service listed compared to 3 years ago?
20.4%
25.5%
27.0%
36.0%
51.0%
59.0%
66.0%
80.0%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Boarding
Behavioral consulting
Sales of Non-prescriptionproducts
Nutritional consulting
Surgery
Diagnostic imaging
Dentistry
Diagnostics
More
Referrals Edge Higher
Practice Management Survey
Q: How many cases do you refer to specialists outside your practice in an average month? (check only one)
5%
52%
27%
16%
44% 43%
33%
21%
3%
34% 32% 31%
4%
31%
21%
4%
None 1 or 2 3 or 4 5 or more
1997 2000 2003 2006
Common Referrals
Practice Management Survey
Q: What type(s) of cases do you usually refer?
30.6%
34.0%
37.4%
42.4%
48.1%
49.8%
57.6%
74.1%
77.3%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Surgery
Dermatology
Internal Medicine
Cardiology
Ultrasound or Diagnostic
Neurology
Oncology
Orthopedics
Ophthalmology
Euthanasia
Stop-Treatment Point
Practice Management Survey
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
Stop-Treatment Point
Practice Management Survey
Q: Estimate the total dollar amount at which most of your clients would refuse or stop treatment of pets: $________.
2%
9%
22%
28%
40%
< $250 $250-$499 $500-$749 $750-$1000 Over $1000
2006 average: $1,451
The Cost Factor
Practice Management Survey
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%
Euthanasia
Practice Management Survey
Q: How many animals does your practice euthanize in an average month?
5.46.78.35.16.68.510.97.4AVERAGE
20062003200019972006200320001997
CATS DOGS
Talking about Euthanasia
Practice Management Survey
Q: Who in the practice talks to clients about euthanasia?
Q: What percent of euthanasias are doctor-suggested or client requested?
0%
58%42%
Doctor
Both Doctor and TechnicianTechnician
28%72%
Veterinarian Suggested
Client Requested
Life and Death Decisions
Practice Management Survey
Q: In your estimation, when do clients opt to euthanize sick animals:
17% 9%
74%
Too soonAbout rightNot soon enough
Euthanizing Healthy Animals
Practice Management Survey
Q: What are the primary reasons behind requests to euthanize healthy animals?
(multiple answers given)
90%
34%
26%
25%
10%
Behavior problems
Change in Family Status(death, divorce)
Moving
Cost Associated withOwnership
Allergies
2006
Relinquishment Problems
Source: National Council on Pet Population Study & Policy
• 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.
Pet Health Insurance
Pet Health Insurance Growth
Practice Management Survey
Q: Do you accept pet health insurance?
43%
67%76%
81%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1997 2000 2003 2006
Third-Party System Acceptance
Practice Management Survey
Q: If yes, do you actively recommend it?
Base: 502
30%
40% 43%
56%
0%
10%
20%
30%
40%
50%
60%
1997 2000 2003 2006
Third-Party Payment Resistance
Practice Management Survey
Q: If you don’t actively recommend it, why not? (write in)
Base: 221
25%
11%
24%
65%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Other
Clients Don't HaveIt
Too Much of aHassle
Clients Don't AskFor It/ Lack of
Interest
Attitudes About Insurance
Practice Management Survey
Q: Would you like to see wider use of pet health insurance by pet owners?
76%
24%Yes
No
81%77%
74%73%
64%60%
0% 50% 100%
Female
Male200020032006
Revenue Mix/Cost Pressures
Most Pressing Issue
Staffing, Career, Salary Survey
Q: What is the most pressing issue facing veterinary medicine? (Please check one)
2%
3%
5%
6%
7%
9%
14%
47%
0% 10% 20% 30% 40% 50%
Government oversight
Consolidation
Specialization
Competition
Lawsuits
Malpractice threats
Employee retention
Rising costs
3%1%3%
2%5%
4%8%
4%7%7%8%
11%16%
12% 41%53%
0% 10% 20% 30% 40% 50% 60%
Government oversight
Consolidation
Specialization
Competition
Lawsuits
Malpractice threats
Employee retention
Rising costs
Male DVMs Female DVMs
Number of Patients
Staffing, Career, Salary Survey
69%20% 11% More
SameLess
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.
Average Client Transactions
Practice Management Survey
Q: What is your current average client transaction?
2006 average: $106
2003 average: $98
2000 average: $85
1997 average: $72
Average Client Transactionby practice size
21%
28%
38%
14%
31%
35%
31%
3%
49%
30%
20%
1%
<$70$70-$99$100-$119$120+
Staffing, Career, Salary Survey
1 doctor practice
2-3 doctor practice
4+ doctor practice
Active Client Base
Staffing, Career, Salary Survey
2006
93%
0%7% Increase
Decrease
Stayedthe Same
Q: Over the past three years, how has the size of your active client base changed?
Finance Predictions
Staffing, Career, Salary Survey
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?
If you anticipate change, by what percentage will your
practice gross revenue decrease?
Average: 9.3%
Average: 10.9%
2%
13%
85%
Anticipate adecrease
Anticipate nochange
Anticipate anincrease
2006 to 2009
Net Revenue on the Rise
Staffing, Career, Salary Survey
Q: Were your 2005 net practice revenues greater than, about the same as or less than 2004 revenues?
11%
35%
54%
8%
27%
65%
14%19%
67%
12%
23%
66%
Less than previousyear
Same as previousyear
Greater thanprevious year
1997 2000 2003 2006
22%41%30%
7%
Yes,positively
Yes,negativelyNo
Not sure
Q: Has your local economy influenced practice revenue?
2006 personal income average: $83,342(Management survey average: $89,907)
Veterinary Service Mix
Staffing, Career, Salary Survey
Q: Approximately what percent of your practice’s 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
Changing Vaccine Protocol
Staffing, Career, Salary Survey
2006
34%66%
Yes No
Q: If requested, will you provide just the vaccination with no exam or just a cursory exam?
1997
52%48%
Yes No
Changing Vaccine Protocol
Staffing, Career, Salary Survey
Q: How do you price vaccinations: one charge for vaccine, separate charge for exam; or one price for both?
49%
39%34%
48%57%
62%
74%
19%
1997 2000 2003 2006
One price for both Separate charges
Mark-ups Vary
Staffing, Career, Salary Survey
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%
Percent mark-up on vaccines
Staffing, Career, Salary Survey
2006151%
142%
120%
1 DVM practice2-3 DVM practice4+ DVM practice
Staffing/Retention
Greatest Professional Concern
Staffing, Career, Salary Survey
Q: What is your greatest professional concern?
4.0%
6.0%
13.0%
28.0%
43.0%
State board intervention
Malpractice claim
Staff turnover
Not enough money
Lack of balance in career/ personal life
Measuring Workload
Staffing, Career, Salary Survey
Q: How do you perceive your current workload demands?
28%56%
16%Too much
Just right
Not enough
0%
5%
10%
15%
20%
25%
Average work week 2006
<3636-4041-4546-5051-5556-60>60
Q: How many hours do you work in an average week?
Average work week:45.8 hours
Work/Life Balance
Staffing, Career, Salary Survey
Q: Is this more, less or about the same number of hours you worked in the past?
0%
10%
20%
30%
40%
50%
60%
2006 Hours worked
MoreLessSame
Staff Turnover
Staffing, Career, Salary Survey
Q: In regard to staff turnover, how many existing positions were filled in 2005?
3.6%4.6%
23.0%15.0%
20.6%17.0%17.0%
0% 5% 10% 15% 20% 25%
11 or more
8 to 10
4 to 7
Three
Two
One
None
Average: 3.1 Positions Filled
Technician Turnover
Staffing, Career, Salary Survey
Q: On average, how long do certified veterinary technicians typically stay employed with your practice?
9.8%
11.9%
36.0%
20.0%
13.5%
9.0%
0% 10% 20% 30% 40% 50% 60%
11 or more
8 to 10 years
4 to 7 years
3 years
2 years
1 year
Average: 5.2 Years
Technician Duties
Staffing, Career, Salary Survey
Q: What procedures would you feel comfortable allowing a certified veterinary technician to perform if accepted by your veterinary state board?
7.7%
9.0%
9.4%
40.0%
46.0%
69.0%
93.0%
95.0%
0% 20% 40% 60% 80% 100%
Other
Removal of small growths
Neuters
Incision for placement of catheters
Basic suturing
Simple dental extractions
Catheterization
Dental phophys
Response to Client Complaints
Staffing, Career, Salary Survey
Q: Who responds to client concerns/complaints about the practice’s delivery of medical care?
46%39%
1%15%
Veterinarian
Veterinarian, but Technician Tries First
OtherTechnician
Finding Qualified Help
Staffing, Career, Salary Survey
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?
62%38% Yes
No 70%30%
Yes
No
Finding Qualified Help
Staffing, Career, Salary Survey
Q: Does your practice plan to hire additional veterinarians in the next 2 years?
51% 49%
Yes No
2006-08
Q: If yes, how many full-time and part-time veterinarians does your practice plan to hire?
Average: 1.3 Part-Time
Average: 1.3 Full-Time
* BASE: 287
0.9%1.3%
0.9%0.0%
1.7%1.3%
2.6%4.3%
12.9%
12.8%
81.0%80.4%
0% 20% 40% 60% 80% 100%
5+
5
4
3
2
1
Full-TimePart-Time
Hiring Trends
Staffing, Career, Salary Survey
Q: How many new positions were created in 2005?
0.7%0.5%
4.0%8.0%
14.0%29.0%
42.0%
0% 10% 20% 30% 40% 50%
11 or more
8 to 10
4 to 7
Three
Two
One
None
Average: 1.2 New Positions Created
Career Satisfaction
Staffing, Career, Salary Survey
Q: Do you intend to stay in private practice your entire professional career?
72%6%
10%12%
Yes
No
Don't Know
Not sure
In 1997: 85 percent reported they would stay in private veterinary practice their entire professional career.