Veterinary practice benchmarks:
Does your hospital measure up?
Not long after WTA began interacting with veterinary practices across the U.S., it became obvious that the key to a successful practice started with good management. The annual Well-Managed Practice® Study began in 1986 as a way to pinpoint the similarities in Well-Managed Practices’ financial, management, and operational decision making.
What constitutes a Well-Managed Practice?
The companion animal practices who participate must meet the following criteria:
Patients come first.
WellMP never lose sight of the fact that they went into practice to promote veterinary patients’ health and well-being.
WellMP foster a culture of respect.
Team members are people first and foremost, and WellMP owners know they must appreciate the doctors and staff for who they are and strive to help them achieve their potential.
WellMP owners enjoy practicing veterinary medicine.
A love of the profession comes through in practice owners’ attitudes toward their clients. WellMP attract and retain clients by creating positive first impressions and going the extra mile to deliver a sensational experience from start to finish for patients and clients.
WellMP operate efficiently.
They earn enough profit to have a healthy amount of revenue left after covering their variable and fixed costs, nondoctor staff compensation, and facility expenses. A WellMP averages a profit-to-gross-revenue ratio of 33% to 42%. Example: a practice earning $3 million in revenue would have at least $990,000 left to pay owners and associates and reinvest in the practice.
What is the Benchmark Study?
The Benchmark Study is an annual compilation of the veterinary practice benchmarks and trends from 100 of the top Well-Managed Practices across the country. Each practice’s financial data and strategies in the areas of fees, earnings, expenses, and technology are scrutinized. The results of the Study include management recommendations and tools you can put to immediate use in your veterinary practice. The goals of the Benchmark Study include:
- To identify and inform the veterinary profession about the successes and challenges in Well-Managed Practices from the practitioner’s viewpoint
- To identify and bring new challenges to the forefront
- To provide information that will help veterinarians practice better medicine, have better working relationships with their clients, and improve their work-life balance