Today's Veterinary Practice provides comprehensive information to keep every small animal practitioner up to date on companion animal medicine and surgery as well as practice building and management.
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PRACTICE BUILDING | 8&--/&44 1-"/4 t QUESTION & ANSWER WHAT IS A WELLNESS PLAN? Wellness plans are annual preventive care plans that outline services the practice feels are needed in order to keep a pet healthy, such as: r Vaccines r Physical examinations r Heartworm testing and other diagnostic blood analysis r Deworming. DO WELLNESS PLANS PROVIDE CARE FOR ILL PETS? These plans aren't generally meant to provide care for pets with disease although, for example, the physical examination may diagnose an illness or a pet that is dewormed may have intestinal parasites. However, wellness plans are generally focused on keeping pets healthy rather than treating illnesses. ARE THERE DIFFERENCES AMONG PRACTICES' PLANS? Some practices include unlimited office visits and physical examinations in the plan; others offer a specific number of office visits/examinations. Most practices that offer wellness plans discount the services included in the plan. However, while some practices offer a discount on services "outside" the care included in the plan; others do not. WHAT ARE THE BENEFITS OF WELLNESS PLANS? r Pets into the practice: The biggest benefit of these plans is that they bring owners and their pets into the practice and keep them coming back. Veterinarians are unable to diagnose disease or demonstrate how wonderful their practices are if clients don't walk in the door. t "GGPSEBCMF WFUFSJOBSZ DBSF The average household income in the U.S. has dropped twice since the recession started. The initial cost of an office visit and physical examination is a barrier for many pet owners. It is much easier for owners to pay $30/month for veterinary care than to receive an invoice for $200. HOW DO THESE PLANS IMPACT THE PRACTICE'S BOTTOM LINE? t *ODSFBTFE TQFOEJOH Many clients on wellness programs spend more than they would if they weren't on one; paying monthly is what makes this possible. t 6OVTFE TFSWJDFT Practices make money from these plans because, just as with gym memberships and gift cards, many people do not use all the services. t %JTFBTF EJBHOPTJT The increased visits also allow veterinarians to diagnose conditions that require treatment outside of the care included in the plan. As with any program that provides discounts, the goal is to increase the purchase of services from clients who do not regularly bring their pets into the practice, which also serves to increase practice traffic. whether clients feel their needs are being met, they won't be able to provide a level of value that supports the fees charged. Ability to Pay The ability to pay is also a critical com- ponent of a client's reaction to price. Pet owners may find value in the service and understand the price; however, if they have very little money in their checking accounts and maxed-out credit cards, ultimately the ability to pay is of foremost concern. r About 69% of practices in the Bayer study reported an increase in the num- ber of clients asking for alternative pay- ment methods from May 2010 to May 2011. r $MJFOU JOUFSFTU JO QFU JOTVS- ance has also increased; 40% of practices reported client interest had slightly increased and 3% reported it had increased signifi- cantly. Almost all practices accept- ed cash, checks, and credit or debit cards. However, the percentage of practices offering other pay- ment methods dropped sharply: r 64% of practices accepted held or post-dated checks r 56% of practices offered third-party medical financing, such as CareCredit (carecredit.com) r 29% of practices offered to invoice pet owners at a later date. HOW TO PUT THESE FACTS TO USE Services That Increase Visits One part of the Bayer study looked at ser- vices veterinary practices could offer that were most likely to increase visits by pet owners. The top four items were the same for both dog and cat owners; two were price related. r Competitive prices: One of these, price-related services was offering competitive pricing for products avail- able outside of the veterinary practice. It is critical to remember that product prices are very transparent these days; clients are typically aware of where they can find products at the lowest price. However, they are more likely to keep buying products from their vet- erinary practice if the prices are com- parative. If a high-end price is going to be charged for a product, there must May/June 2012 Today's Veterinary Practice 69 Veterinary Teams & Clients: Facing Financial Facts