Is Business Down? You’re Not Alone (2024)

Patient visits have dipped at many veterinary practices and perhaps at yours. According to a recent VetSource Industry Summary, revenue is steady or slightly higher, but visits are down about 2% compared with last year. Any decrease in volume is worrisome for practice managers. Knowing that it’s happening industrywide might be of some consolation, but it doesn’t ease the fear of missing payroll.

Why Now?

No doubt, inflation has affected veterinary practices. Discretionary spending on pet care has fallen due to the increased cost of living, and more clients are forgoing veterinary wellness visits, which aren’t a priority for them if a pet appears healthy. The result is more urgent cases and pet owners requesting treatment alternatives. Therefore, consider offering financing options and the spectrum of care.

Another factor is the post-pandemic normalization of patient visits. Memories of the pet ownership boom and the sudden jump in visits and revenue in 2020 might make you think you’re losing business today. The feeling is genuine because patient volume is down at many clinics over the past two years while payroll costs have risen. Therefore, now is the time to reflect on your practice’s efficiency and customer service and prepare for what some experts predict will be a booming 2025.

What You Can Do

The last thing a practice manager wants is to terminate team members because of a downturn in business, especially if summer visits rebound, as they usually do. Cutting non-DVMs who generate revenue can be a long-term failure for a veterinary clinic. However, you might employ team members who have toxic attitudes or don’t meet your expectations. They can poison the team, reducing revenue, dampening the client experience and driving away good employees.

Too often, toxic employees aren’t held accountable for their behavior. If that describes your practice, stop protecting and making excuses for these individuals. Their leaving for the competition is healthy for you, your team and your clients.

Another move is to analyze expenses outside of payroll and reduce what you can. While cost-cutting might be a temporary fix, evaluating all yearly expenses is a good business practice.

Here are a few other tips:

• Review your IT and equipment contracts. Do you use all the services you pay for? Can you pause or eliminate the “nice-to-haves”?
• Review your advertising dollars. Have you seen a return on investment, or can the money be reallocated temporarily or permanently to areas with more client impact?
• Evaluate the cost and benefits of all integrative applications, such as client communication platforms, phones and your online pharmacy. Are more feasible options available to serve pet owner needs and improve efficiency?

Lower patient volume gives practice managers more time to understand what impacts revenue positively or negatively. Take urgent care, for example.

• How do your receptionists handle a phone call from a worried pet owner? Do they immediately look for a next-day appointment slot or say, “Can you come in now?”
• How does the team respond when a client calls 30 minutes before closing?

Your speedy acceptance of urgent-care patients can turn new clients into raving fans who return for wellness exams. Some hospitals stopped taking new clients during the pandemic and afterward, so don’t miss the opportunity to grow your business.

Be More Accommodating

As a consultant, I have found clinic employees turning away business so they can go home early or reduce their workload. Practice managers should evaluate recorded phone calls (where legal) or have secret shoppers call your clinic to document the client experience.

As for booking visits, consider:

• Do pet owners need to call during business hours, or can they schedule an appointment online anytime, directly into the calendar? Emailed requests and back-and-forth messages don’t constitute genuine online booking. Studies indicate that 80% of clients book after hours when the technology allows them to.
• Does your appointment calendar accommodate pet owners who resumed 8-to-5 work schedules after the pandemic and need to visit at other hours?
• Do you schedule additional team members when clients want their pets to be seen, such as after 3 p.m. or on Saturday?

The client demographic has changed, and some aren’t as loyal as they once were. If your practice can’t see patients when their owners want, those clients will find a hospital that can. Remember that client service sets your practice apart from the competition.

Improving Compliance

Some of the following points might feel mundane to team members but are essential for patient care and business.

Can clients easily confirm an appointment when your practice sends an email or text reminder? When a client doesn’t confirm, does a team member call or send a follow-up email or text message?

• Does your practice forward-book appointments for vaccine boosters, rechecks, lab work and annual exams?
• Do team members review past-due services and contact the owners to schedule an appointment? Remember that not all clients can afford everything you recommend, so offer a spectrum of care. Maintaining a relationship with lapsed clients while offering care alternatives and payment options builds trust and encourages their return.

Finally, how effective is your marketing, especially on social media? Posting a simple graphic stating, “Same-day appointments available,” will help attract new pet owners. Also, remind current clients that your practice can accommodate urgent-care cases, and ensure your team facilitates those appointments.

Your practice’s commitment to top-notch service, trouble-free appointment booking, better workflows and a happier team will make increased patient volume an easy transition for you in 2025.

PRO TIP

Encourage your entire team to work with clients regarding the spectrum of care and their need for financing options. Casting judgment on pet owners during challenging economic times can cause them to seek alternative care.