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 be additional value, which needs to be clearly communicated to the client. t Wellness programs: Another service that was very popular was the concept of wellness programs (see Wellness Plans: Question & Answer, page 70). These programs are typically billed on a monthly basis; therefore, the client doesn't have to pay for routine wellness services when they are provided. Unfortunately, only 5% of practices in the survey offered any type of payment program geared toward promoting regular wellness care. In addition to price-related services that increased client visits to the practice, the other two items included: r &YUFOEFE; IPVST UIBU XPVME BMMPX QFU PXOFST UP visit a veterinary practice more often (eg, after or before work) r 1FSTPOBMJ[FE IFBMUI JOGPSNBUJPO UIBU DPWFSFE BEEJ- tional care the pet may need during the upcoming year, what could be done at home to make sure the pet stayed healthy, and what clinical signs could identify potential illness in the pet. Payment Options A number of studies have clearly demonstrated the benefits of payment options: t Pet insurance: One 2006 survey performed on behalf of Veterinary Pet Insurance (petinsurance. com) showed that, over the life of their pets, the company's policyholders scheduled 40% more veterinary visits and spent twice as much on veterinary care compared to owners without pet insurance.2 Karen E. Felsted, CPA, MS, DVM, CVPM, is the owner of Felsted Veterinary Consultants, Inc, which offers business consulting to both private practices and the animal health industry. She is the treasurer for VetPartners (avpmca. org) and the CATalyst Council (catalystcouncil.org) as well as a member of the Certified Veterinary Practice Manager (CVPM) board of directors (vhma. org). She previously served as the CEO for the National Commission on Veterinary Economic Issues (ncvei.org). In 2011, she received the Western Veterinary Conference Practice Management Continuing Educator of the Year award. She received her bachelor's degree in marketing from University of Texas at Austin, her master's degree from University of Texas at Dallas, and her DVM at Texas A&M; University. She practiced small animal and emergency medicine while maintaining a veterinary accounting and consulting practice. She has also provided services to Brakke Consulting, Inc, and Gatto McFerson CPAs, a veterinary-focused financial and consulting firm. 70 Today's Veterinary Practice May/June 2012 t Health care services card: A 2011 survey by Brakke Consulting (brakkeconsulting.com) on behalf of CareCredit reported that cardholders spend 47.6% more per pet compared to non- cardholders. Visit carecredit.com/practices/ veterinary to learn more about this service and how to offer it to your clients.3 A future article in Today's Veterinary Practice will comprehensively discuss how to talk with clients about pet insurance. Estimates & Written Policies It is also important to remember some of the basics when talking about money with clients. r PG QFU PXOFST JO UIF #BZFS TUVEZ TBJE UIF cost of care was more than they expected. r "OPUIFS XIJMF UIFZ EJEO U BHSFF XJUI UIF previous statement, didn't disagree with it either. r -FTT UIBO IBMG PG SFTQPOEFOUT TBJE UIFJS clinics had written financial policies. The following guidelines will help prevent confusion or frustration regarding procedure expenses: t 1SPWJEF FTUJNBUFT to clients prior to proceeding with medical care. t %FTDSJCF UIF CFOFGJUT of the recommended course of care for the pet clearly and compre- hensively. t 0VUMJOF UIF QBZNFOU PQUJPOT you provide in your practice. t 1SFTFOU B XSJUUFO GJOBODJBM QPMJDZ to clients. A written policy not only makes a practice think through its billing procedures and payment options but is also useful in educating both clients and clinic employees. The following items are an example of what to include: r 4UBUFNFOU DPOGJSNJOH XIFO QBZNFOU JT EVF r 1BZNFOU PQUJPOT UIF QSBDUJDF PGGFST r 8IFO EFQPTJUT BSF SFRVJSFE r )PX CPVODFE DIFDLT BOE EFMJORVFOU BDDPVOUT will be handled. IN SUMMARY Modifying our approach to pricing will likely be one of the most difficult changes practices will have to make over the next few years. While not every strat- egy discussed will work for every practice, paying attention to feedback from clients will help improve client relationships, care provided to their pets, and the practice's financial health. ■ References 1. Felsted KE. AAHA Veterinary Fee Reference, 5th, 6th, and 7th eds. Denver, CO: AAHA Press; 2007, 2009, and 2011. 2. VPI Pet Owner and Client Survey. Brea, CA: Veterinary Pet Insurance, 2006 (unpublished). 3. The Impact of CareCredit on Veterinary Practice Financial Performance: A 4-Year Study (2007–2010). Dallas, TX: Brakke Consulting, Inc, 2011. 4. Berry LL, Bendapudi N. Clueing in customers. Harvard Bus Rev 2003; February 1.