Most towns, or at least larger cities, have a veterinary hospital to take care of our furry family members. The demand for veterinary services is not decreasing, especially with the rise in pet adoptions during the pandemic, when more people were home to take care of and raise animals. So while veterinary hospitals are not hurting for clients, there can still be a loss in profit depending on particular conditions of operation, pricing, and business protocols.
Veterinary hospitals owned and operated by a larger corporate chain are less likely to suffer the direct blow of profit loss. These hospitals have a safety net of corporate money that allows the individual hospital owned by that company more wiggle room in spending and general costs. There is certainly a benefit to having this safety net, especially when expensive equipment purchases need to be made, or new employees need to be onboarded. For veterinary hospitals who are self-owned, the licensed veterinarian(s) may be more personally responsible and involved with spending. If money is needed for particular things beyond day-to-day costs, there is no corporate pool from which to grab. If the money is needed but does not exist, some small vet offices may even have to resort to loans to cover costs of equipment and employee onboarding.
One of the ways that independent veterinary hospitals can attempt to increase, at least stabilize, their profit is by carefully identifying cost, value, frequency of services, and other related factors. For a corporate-owned hospital, these fees and costs may be determined by a provided financial advisor, who can observe supply and demand, cost of goods sold, and comparative fees associated with the standard services provided to patients. These types of decisions must be made, and protocols must be enacted on a more individual level with a small veterinary hospital. One of the reasons an individual might choose the services of a small business is the attractive pricing, and the feeling of supporting an independent entity rather than a corporate one. However, these generally lower costs can gravely affect the profit of the independent vet hospital. Thus, decisions must be made on price increases to counteract the expenses, and this can be a difficult transition that may even result in loss of clients. It is certainly a level of balance and personal involvement that is virtually non-existent in a veterinary hospital owned and managed by a corporate entity.
Williams & Nickl has represented thousands of licensed professionals and their licensed business entities who face issues with IDFPR. If you find yourself in such a situation, Williams & Nickl can provide the help you need.