PRACTICE NEWS
WHAT DOES 2023 LOOK LIKE FOR THE VETERINARY INDUSTRY?
As we stand at the threshold of a new year, our industry is moving quickly and more questions abound as what we are going to look like in this uncertain economy. Problems are not isolated to practices that are
corporate or independent, small or large, urban or rural. Tey permeate and affect all of us – including our patients and clients. Costs to deliver care are at an all-time high and will continue to rise. Supply chain issues interrupt the availability of needed supplies and pharmaceuticals and lastly, labor shortages persist. However, if nothing else, veterinarians are quite resilient and adaptive. Looking ahead now and planning are vital to maintaining solvency.
Despite the government declaring we have not been in a recession, it is more obvious on the ground, so to speak. Historically, economists define a recession as 2 successive quarters of negative GDP. We accom- plished that in the first two quarters of this year, but did a little better in the third quarter (an increase of 2.6%). Economic models project real year-end-growth for 2022 to be around 1.8%. So, what does all of that mean to us? Quite a bit, actually. If you have been paying attention, your drugs and supplies have risen exponentially in cost this year. Distributors are facing higher fuel prices and that directly affects the cost to bring us needed supplies. You can bet that these companies don’t like it any more than we do, but that cost is going to be passed to us, and should subsequently shifted to our clients. Tese costs are either buried in product sales, a flat fee on every delivery or a surcharge on your monthly statement. As of this writing, crude oil was tending at slightly over $80/ barrel and we are at the mercy of foreign nations since we are no longer producing our own fuel to meet demand. You must pass this cost on to your clients in the form of higher fees. Yes, I said it! You must adjust what you charge on an almost daily/ weekly basis. Every invoice should be reviewed as it comes in and your fee adjusted every time there is a price change. Most drug companies and laboratories have a significant price increase in January, so expect it to be even higher this year. Benefits (health insurance) premiums are part of the mix as well.
Most of you have already realized the diminishing supply of many of our most valuable pharmaceuticals. We have struggled for almost 2 years to get opioids to use in trauma, surgery and dentistry. It has recovered slightly with the availability of buprenorphine and hydromorphone, but still creates problems for some of our patients. Tere is an anticipation of limited amoxicillin (actually, it is already here). Some things have improved this year, but are still very inconsistent as to availability. Have alternative choices ready in the event of a loss of your commonly used pharmaceuticals.
Te third issue we are all tackling is labor – both professional and support staff. Is there really a lack of veter- inarians? Personally, I don’t really think there is a shortage, per se’. Rather, it is a culmination of retirement, some choosing to work part-time, increased client numbers and some leaving practice due to burnout. Add to that the fact that the overwhelming majority of our young veterinarians are women and many are electing to get married and start a family and thereby creating at least a temporary vacuum of a needed workforce. Tis is not a bad thing, but something we must contend with and consider. Support staff are also vital as well. Wages are rising, and they should. Many fast-food restaurants are advertising starting pay at $12 - $15.00. Not that we are competing for the same employees with that industry, but it points out that we must be competitive to attract and retain the most skilled workers. In 90% plus of the practices I work with every year, most do not need additional veterinarians. Tey simply need to use their current staff more effi- ciently and add to the number of employees. Technicians and assistants should be doing all of those things that do not require a Doctor (labwork, venipuncture, radiography, preparing medications, etc.).
So, what else do we need to do? First, it is important to recognize a problem so that a proper antidote can be applied – you cannot fix what you don’t know is broken. Many of us spend a large amount of time managing our practices. While necessary, that is time taken away from the primary thing we are trained to do – diagnose and treat animals. Delegate those things to a manager that is capable of doing those
34 KVMA News Continued on pg. 35
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