Trend Charts Veterinary Efficiency Metrics
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1 Ratio Value Better Ratio Value Ratio Value Better Better Trend Charts Veterinary Efficiency Metrics Orca Veterinary Hospital Average Client Transactions (ACT): Average price per client $120 $70 $150 $40 Average Client Transactions (ACT) $180 $102 $127 $95 $115 $136 $115 $97 $124 $124 $132 $104 $93 $108 $114 $150 Opportunity: $84,986 more profit if ACT increases to reach top of practices Total Revenue per (FTE) Veterinarian: Total Revenue generated by business per Vet $26,000 $15,000 $40,000 $10,000 Total Revenue per (FTE) Veterinarian $60,000 $38,117 $37,634 $40,257 $38,855 $42,464 $37,053 $33,229 $30,613 $30,978 $23,642 $24,401 $21,608 $22,346 $32,549 $40,000 Opportunity: $17,386 more profit if total revenue per FTE increases to the top of practices Total Average Dr. Production: Revenue per DVM on their services $25,400 $11,250 $35,000 $35,000 $7,500 Total Dr. Production $55,000 $28,587 $28,225 $30,193 $29,141 $31,848 $27,790 $24,922 $22,960 $23,233 $17,732 $18,301 $16,206 $16,759 $24,411 Opportunity: $42,540 more profit if revenue per FTE for their services increases to the top of practices More NOTE: Benchmark in charts is set to (Quartile) of the Veterinary Industry Information
2 VETERINARY EFFICIENCY METRICS These metrics in vfo are unique to the veterinary practice, and CPR recognizes the value of being able to benchmark a practice against peers to understand where improvements can be made to increase efficiency and profitability. We have assembled these powerful metrics, gathered the industry data, and designed a unique way to make these critical benchmark comparisons for your practice. To allow vfo to read and report this data with our unique metered design, new data must be added to QuickBooks in a few simple steps. All clients are supplied with a custom designed supplemental Chart of Accounts for QuickBooks with these new account names, and simple instructions on how to add them. Click the box below to get the instruction on adding the supplemental Chart of Accounts. These new accounts allow the practice to enter this information in a way that will not impact their other financial data the profit/loss or the balance sheets but will allow vfo to report these powerful efficiency metrics. NOTE: Your practice must enter these new accounts data into QuickBooks for this page to be a part of your report. We strongly recommend entering these to take advantage of this unique reporting/benchmarking feature. Supplemental Chart of Accounts Page 2 of 6
3 Industry Performance Meter This particular page plots the metrics for Average client transactions (ACT), Total revenue per (FTE full time equivalent) veterinarian, and Total average doctor production. Current Actual Performance Indicator $26,000 $15,000 $40,000 $10,000 Total Revenue per (FTE) Veterinarian $60,000 Industry Performance on Metric The meters (as shown above) are an indicator of where the practice stands against the veterinary industry. The right side of the meter shows the highest industry performers: the top (in this case, $40,000) and top (in this case, $60,000) both indicated with green numbers. The bottom performers are shown on the left side: the bottom (in this case, $15,000) and bottom (in this case, $10,000) indicated with red numbers. Your practice s current performance is indicated by the meter indicator arrow. The arrow changes from Red (concern) to Yellow (caution) to Green (good) based on where you stand relative to the industry. In this example, the meter indicates that this practice is almost as good as the top of their industry for the total revenue per veterinarian. Page 3 of 6
4 Average Client Transactions (ACT): Average transaction per client Opportunity: $84,986 more profit if ACT increases to reach top of practices This bar chart plots the last 13 months of your practice s performance for the average client transactions metric. This can show trends of growth, flatness, or decline of a practice. vfo also plots the last 12 month rolling average labeled annual (the grey bar). Finally, an industry benchmark (brown bar) which represents how the top of similar practices are performing. ACT is a productivity gauge, and is calculated by dividing the total revenue by the total number of transactions. When your team is trained to offer more thorough explanations and all appropriate treatment options, client compliance is typically increased, which increases the ACT; this translates to higher practice profitability and better patient care. There is significant room for improvement in providing the care that we all agree is best for patients, and even if we assume a client cannot afford the treatment, it should be offered. Clients want to have their vets tell them what their animal needs and will generally follow recommendations if they feel informed and educated. Educating staff about all services and products will help them feel confident in suggesting those recommendations. Adjusting fees to reflect increases in costs for labor and supplies is critical, as is remembering to charge for services provided! If your practice is running below the benchmark shown (which is the top of practices), vfo automatically calculates the opportunity for additional profit if the practice could reach that benchmark. In this example, the benchmark is at $150 and the practice is at $108 a difference of $42. Since vfo has the number of transactions in this case 2,024 the profit opportunity can be calculated. The calculation is as follows: $41.99 ACT difference x 2,024 transactions = $84,986 more profit. This will appear on the vfo report just below the chart with Opportunity: shown in green. Page 4 of 6
5 Total Revenue per (FTE) Veterinarian: Total revenue generated by business per veterinarian Opportunity: $17,386 more profit if total revenue per FTE increases to the top of practices This bar chart plots the last 13 months of your practice performance for the total revenue per (FTE) veterinarian metric, where FTE is full-time equivalent. This can show trends of growth, flatness, or decline of a practice. vfo also plots the last 12 month rolling average labeled annual (grey bar). Finally, an industry benchmark (brown bar) which represents how the top of similar practices are performing. This is calculated by dividing the practice s total revenue by the number of FTE veterinarians. To increase this number, there are hundreds of suggestions, but here are some common ideas: recommending all options for optimal patient care, building established practices, hiring efficient non-veterinary staff and properly delegating tasks, building effective reminder systems, following up after providing services, booking rechecks, offering new services, delivering tangible evidence of value and reminding/educating clients about all of the services available. The number of veterinarians alone does not equate to higher productivity levels. If your practice is running below the benchmark shown (which is the top of practices), vfo automatically calculates the opportunity for additional profit if the practice could reach that benchmark. In this example, the benchmark is at $40,000 and the practice is at $37,053 a difference of $2,947. Since vfo has the number of FTE veterinarians in this case 5.9 the profit opportunity can be calculated. The calculation is as follows: $2,947 revenue difference x 5.9 FTE veterinarians = $17,386 more profit. This will appear on the vfo report just below the chart with Opportunity: shown in green. Page 5 of 6
6 Total Average Dr. Production: Revenue per DVM on their services Opportunity: $42,540 more profit if revenue per FTE for their services increases to the top of practice This bar chart plots the last 13 month of your practices performance for the total average Dr. production metric. This can show trends of growth, flatness, or decline of a practice. vfo also plots the last 12 month rolling average labeled annual (grey bar). Finally, an industry benchmark (brown bar) which represents how the top of similar practices are performing. This metric is calculated by dividing medical services revenue by FTE veterinarians. Unlike total revenue per FTE veterinarian, this is more specifically focused on the medical services revenue, and does not include staff services or other ancillary sales. It is a specific measure of how productive the practice veterinarians are. If your practice is running below the benchmark shown, (which is the top of practices), vfo automatically calculates the opportunity for additional profit if the practice could reach that benchmark. In this example the benchmark is at $35,000 and the practice is at $27,790 a difference of $7,210. Since vfo has the number of FTE the practice has in this case 5.9 vfo can calculate the profit opportunity. The calculation is as follows: $7,210 X 5.9 per transaction = $42,539 more profit. This will appear on the vfo report just below the chart with Opportunity: shown in green. Page 6 of 6
Trend Charts Veterinary Metrics Part 2
Ratio Value Better Ratio Value Ratio Value Trend Charts Veterinary Metrics Part 2 Orca Veterinary Hospital Invoices Generated: Trend of business growth 2100 1800 2500 1500 Invoices Generated 3000 1,888
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