More than 50 percent of veterinary practices have seen revenue growth this year compared with the year-ago period, according to the National Commission on Veterinary Economic Issues. Another 12 percent showed no growth, while about 33 percent to 35 percent saw revenue declines.
The nonprofit organization gathered the statistics on its website by asking veterinary practices how their clinic’s quarter one and quarter two revenues in 2010 compared with 2009.
The breakdown is as follows:
In related news, the average practice has a profit margin of 9.8 percent with the median being slightly higher at 10.2 percent, according to results from the NCVEI/VetPartners Profitability Estimator.
NCVEI puts this into perspective: a practice needs to have a profit margin of 18 percent or higher to sell at the gold standard of 100 percent of gross revenue.
| Here is the breakdown showing the percentage of practices at each level of profitability:
NCVEI also asked veterinary practices about fee increases. The survey found that 18.1 percent of veterinary practices have not raised fees in 2010, 1.4 percent lowered fees, 45.8 percent raised fees on average from 1 percent to 4 percent, 29.2 percent raised fees on average from 5 percent to 8 percent, 4.2 percent raised fees on average from 9 percent to 12 percent and 1.4 percent raised fees on average greater than 12 percent.
NCVEI is now asking veterinary practices how the number of patient visits for the first nine months of 2010 compare to the year-ago period. The organization is also asking veterinary practices to enter their monthly revenue and transactions for September and any previous months so it can continue to track the impact of the recession and the post-recession period on veterinary medicine.
To take the survey(s), visit www.ncvei.org.