State of the Profession 2006 Research Objectives Document professional/economic issues facing veterinarians. Identify trends within the delivery of.

State of the Profession 2006Research Objectives

Document professional/economic issues facing veterinarians.

Identify trends within the delivery of veterinary services today and in the future.

Evaluate the relationship between veterinarians and clients.

Benchmark similar survey results conducted in 2003, 2000 and 1997.

Methodology

April 6- May 4th, 2006Field Time:

60 pre-paid $25 Visa gift cards. One reminder e-mailed to all individuals who had not responded to the initial e-mail invitation.

Incentives:

Exclusive small animal, predominantly small animal, and mixed animal practices from DVM Newsmagazine’s circulation.

Sample:

DVM Newsmagazine and Advanstar Communications Research Services designed two surveys. Each used an online methodology.

Surveys:

Maximum Statistical Error @ 95% Confidence Level:+3.9% - Practice Management survey +4.2% - Staffing, Career, and Salary survey

Response Rate

Effective net launch

Submittals

Response Rate

Practice Management survey

4,841 625 13%

Staffing, Career, and Salary survey

4,695 564 12%

About the Respondents

19.4%

29.0%

25.4%

20.1%

4.5%

1.3%

0.4%

0% 10% 20% 30%

2000 to present

1990-1999

1980-1989

1970-1979

1960-1969

1950-1959

1949 or earlier

17.3%

29.7%

26.1%

19.7%

5.8%

1.3%

0.2%

0% 10% 20% 30%

2000 to present

1990-1999

1980-1989

1970-1979

1960-1969

1950-1959

1949 or earlier

Practice Management Survey Staffing, Career Survey

Year of Graduation

50.8%49.2% Male

Female

50.4%49.6% Male

Female

Practice Management Survey Staffing, Career Survey

About the Respondents

About the RespondentsPractice Management Survey Staffing, Career Survey

5.9%

10.8%

83.3%

0% 50% 100%

Mixed

Predominantlysmall animal

Exclusivesmall animal

9.3%

11.8%

79.0%

0% 50% 100%

Mixed

Predominantlysmall animal

Exclusivesmall animal

3.7%

5.7%

40.6%

50.0%

0% 20% 40% 60%

Other

Partner

Associate/ employeeveterinarian

Owner

5.6%

9.5%

34.3%

50.6%

0% 20% 40% 60%

Other

Partner

Associate/ employeeveterinarian

Owner

Position in Practice

Practice Type

Competition

The Competitive Pulse

2006

45%51%4%

Highly Competitive

Somewhat Competitive

Not at all Competitive

Q: How competitive do you consider the market for veterinary services in the region in which you practice?

Practice Management Survey

Moving inQ: How many practices (within 5 miles) have opened in the past 3 years?


2%3% 1%9%

59%27%

None 1 2 3 4 5+

2006

Who’s the Competition?Q: From which of the following sources do you feel competitive business pressure?


10%

13%

27%

27%

50%

8%

16%

17%

21%

24%

62%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Mobile clinics

Corporate practices, not associated w/ superstores

Specialists

Humane societies/shelters

Pet superstores

Practices associated with pet superstores

Vaccination clinics

Larger full service veterinary hospitals

Spay/neuter clinics

Traditional veterinary clinics

Internet sales web sites

2006

The One SourceQ: Which one source poses the most significant challenge to the success of your practice?


1%

2%

3%

3%

3%

4%

5%

6%

15%

24%

28%

0% 10% 20% 30% 40%

Mobile clinics

Pet superstores

Corporate practices, not associated w/ superstores

Humane societies/ shelters

Spay/neuter clinics

Vaccination clinics

Practices associated with pet superstores

Specialists

Larger full service veterinary hospitals

Internet sales web sites

Traditional veterinary clinics

Sizing up the Competition

2006

Q: Are your facilities and medical equipment better, worse or about the same as other practices in your area?


50%7%43%

Better

Worse

About the Same

Measuring up?

2006

Q: Are your facilities and medical equipment better, worse or about the same as other practices in your area?


0% 20% 40% 60% 80% 100%

$1,750,000+

$1,500,000-$1,749,999

$1,250,000-$1,499,999

$1,000,000-$1,249,999

$750,000-$999,999

$500,000-$749,999

$250,000-$499,999

<$249,999

Better

Annual gross

Corporate Practice Attitudes


Q: How do you feel about corporate ownership and management of veterinary practice, both for the profession as a whole, and for you personally as an opportunity or career direction?

1997

2000

2003

2006

Strongly in Favor 4% 3% 4% 4%

Somewhat in Favor 8%

14% 8% 8%

Neutral14

%17

% 24% 28%

Somewhat Opposed

22%

21% 25% 25%

Strongly Opposed

41%

45% 39% 35%

Don’t Know Enough to Evaluate

11% N/A N/A N/A

For you personally For the profession

1997

2000

2003

2006

Strongly in Favor 3% 3% 4% 4%

Somewhat in Favor

10%

17%

11%

9%

Neutral 17%

21%

32%

36%

Somewhat Opposed

29%

31%

30%

33%

Strongly Opposed

29%

28%

23%

19%

Don’t Know Enough to Evaluate

12%

N/A N/A N/A

Market/Community Position

1997 2000 2003 2006

We take all paying clients, providing them with whatever level of service they request/require.

74% 71% 69% 64%

We offer primarily high-quality diagnostic medicine and surgery, and tend to have clients for whom cost of treatment is not a major factor.

19% 23% 25% 31%

We primarily provide basic medical services, price our medical service low and attract cost-conscious pet owners.

7% 6% 6% 5%


Q: Which statement most closely reflects your practice and client base?

Service Mix


Q: Are you providing more, about the same or less of each service listed compared to 3 years ago?

20.4%

25.5%

27.0%

36.0%

51.0%

59.0%

66.0%

80.0%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Boarding

Behavioral consulting

Sales of Non-prescriptionproducts

Nutritional consulting

Surgery

Diagnostic imaging

Dentistry

Diagnostics

More

Referrals Edge Higher


Q: How many cases do you refer to specialists outside your practice in an average month? (check only one)

5%

52%

27%

16%

44% 43%

33%

21%

3%

34% 32% 31%

4%

31%

21%

4%

None 1 or 2 3 or 4 5 or more

1997 2000 2003 2006

Common Referrals


Q: What type(s) of cases do you usually refer?

30.6%

34.0%

37.4%

42.4%

48.1%

49.8%

57.6%

74.1%

77.3%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Surgery

Dermatology

Internal Medicine

Cardiology

Ultrasound or Diagnostic

Neurology

Oncology

Orthopedics

Ophthalmology

Euthanasia

Stop-Treatment Point


Q: Estimate the total dollar amount at which most of your clients would refuse or stop treatment of pets: $________.

2006 average: $1,451

2003 average: $961

2000 average: $795

1997 average: $576

Stop-Treatment Point


Q: Estimate the total dollar amount at which most of your clients would refuse or stop treatment of pets: $________.

2%

9%

22%

28%

40%

< $250 $250-$499 $500-$749 $750-$1000 Over $1000

2006 average: $1,451

The Cost Factor


Q: Over the past 12 months, to what extent has cost affected your clients’ decisions to treat (or continue treatment of) sick or injured animals? (Please assign a percentage.)

1997

2000 2003 2006

Cases for which cost was not a factor at all 25% 30% 26% 31%

Cases for which cost was a factor, but client agreed to recommended treatment

35% 31% 34% 32%

Cases for which cost limited treatment 27% 25% 25% 23%

Cases for which cost was the primary reason for no treatment

14% 14% 14% 14%

Euthanasia


Q: How many animals does your practice euthanize in an average month?

5.46.78.35.16.68.510.97.4AVERAGE

20062003200019972006200320001997

CATS DOGS

Talking about Euthanasia


Q: Who in the practice talks to clients about euthanasia?

Q: What percent of euthanasias are doctor-suggested or client requested?

0%

58%42%

Doctor

Both Doctor and TechnicianTechnician

28%72%

Veterinarian Suggested

Client Requested

Life and Death Decisions


Q: In your estimation, when do clients opt to euthanize sick animals:

17% 9%

74%

Too soonAbout rightNot soon enough

Euthanizing Healthy Animals


Q: What are the primary reasons behind requests to euthanize healthy animals?

(multiple answers given)

90%

34%

26%

25%

10%

Behavior problems

Change in Family Status(death, divorce)

Moving

Cost Associated withOwnership

Allergies

2006

Relinquishment Problems

Source: National Council on Pet Population Study & Policy

• Shelters euthanize and estimated 4 million to 6 million pets a year.

• Some high-intake shelters can take in 30,000 animals a year.

• Nationally, more than 55 percent of all intakes are believed to be euthanized.

Pet Health Insurance

Pet Health Insurance Growth


Q: Do you accept pet health insurance?

43%

67%76%

81%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1997 2000 2003 2006

Third-Party System Acceptance


Q: If yes, do you actively recommend it?

Base: 502

30%

40% 43%

56%

0%

10%

20%

30%

40%

50%

60%

1997 2000 2003 2006

Third-Party Payment Resistance


Q: If you don’t actively recommend it, why not? (write in)

Base: 221

25%

11%

24%

65%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other

Clients Don't HaveIt

Too Much of aHassle

Clients Don't AskFor It/ Lack of

Interest

Attitudes About Insurance


Q: Would you like to see wider use of pet health insurance by pet owners?

76%

24%Yes

No

81%77%

74%73%

64%60%

0% 50% 100%

Female

Male200020032006

Revenue Mix/Cost Pressures

Most Pressing Issue

Staffing, Career, Salary Survey

Q: What is the most pressing issue facing veterinary medicine? (Please check one)

2%

3%

5%

6%

7%

9%

14%

47%

0% 10% 20% 30% 40% 50%

Government oversight

Consolidation

Specialization

Competition

Lawsuits

Malpractice threats

Employee retention

Rising costs

3%1%3%

2%5%

4%8%

4%7%7%8%

11%16%

12% 41%53%

0% 10% 20% 30% 40% 50% 60%

Government oversight

Consolidation

Specialization

Competition

Lawsuits

Malpractice threats

Employee retention

Rising costs

Male DVMs Female DVMs

Number of Patients


69%20% 11% More

SameLess

2006

2006 average: 68 patients personally seen per week.Steady erosion noted in one-doctor practices from 82 per week in 1997 to 67 in 2006.

Average Client Transactions


Q: What is your current average client transaction?

2006 average: $106

2003 average: $98

2000 average: $85

1997 average: $72

Average Client Transactionby practice size

21%

28%

38%

14%

31%

35%

31%

3%

49%

30%

20%

1%

<$70$70-$99$100-$119$120+


1 doctor practice

2-3 doctor practice

4+ doctor practice

Active Client Base


2006

93%

0%7% Increase

Decrease

Stayedthe Same

Q: Over the past three years, how has the size of your active client base changed?

Finance Predictions


Q: Do you anticipate your practice gross will increase or decrease annually over the next three years?

If you anticipate change, by what percentage will your

practice gross revenue increase?

If you anticipate change, by what percentage will your

practice gross revenue decrease?

Average: 9.3%

Average: 10.9%

2%

13%

85%

Anticipate adecrease

Anticipate nochange

Anticipate anincrease

2006 to 2009

Net Revenue on the Rise


Q: Were your 2005 net practice revenues greater than, about the same as or less than 2004 revenues?

11%

35%

54%

8%

27%

65%

14%19%

67%

12%

23%

66%

Less than previousyear

Same as previousyear

Greater thanprevious year

1997 2000 2003 2006

22%41%30%

7%

Yes,positively

Yes,negativelyNo

Not sure

Q: Has your local economy influenced practice revenue?

2006 personal income average: $83,342(Management survey average: $89,907)

Veterinary Service Mix


Q: Approximately what percent of your practice’s annual gross comes from each of the following categories, and where do you anticipate these percentages will be in 3 years?

Percentage of Practice Annual Gross Revenue

Prediction of Percentages 3 Years

from Now

Annual Exams 17.3 18.0

Vaccinations 13.7 10.6

Diagnostics 19.0 21.0

Surgery 18.1 19.0

Non-invasive procedures 10.2 11.1

PRODUCT SALES

Heartworm product sales 6.9 6.0

Flea & tick product sales 6.6 5.8

Pet food product sales 5.0 4.9

Pharmaceuticals/biologicals not included

above 13.0 12.3

Other product sales 3.6 3.6

Changing Vaccine Protocol


2006

34%66%

Yes No

Q: If requested, will you provide just the vaccination with no exam or just a cursory exam?

1997

52%48%

Yes No

Changing Vaccine Protocol


Q: How do you price vaccinations: one charge for vaccine, separate charge for exam; or one price for both?

49%

39%34%

48%57%

62%

74%

19%

1997 2000 2003 2006

One price for both Separate charges

Mark-ups Vary


Q: What is your usual mark-up to clients on each of the following product categories?

Product 1997

2000

2003

2006

Vaccines / biologicals 373%

276%

244%

143%

Other Pharmaceuticals 115%

124%

122%

116%

Heartworm preventive 98% 81%

Flea control products 104%

97% 94% 78%

Therapeutic pet foods 37% 41% 38% 48%

Premium pet foods 37% 37% 34% 46%

Pet supplies 82% 87% 75%

Percent mark-up on vaccines


2006151%

142%

120%

1 DVM practice2-3 DVM practice4+ DVM practice

Staffing/Retention

Greatest Professional Concern


Q: What is your greatest professional concern?

4.0%

6.0%

13.0%

28.0%

43.0%

State board intervention

Malpractice claim

Staff turnover

Not enough money

Lack of balance in career/ personal life

Measuring Workload


Q: How do you perceive your current workload demands?

28%56%

16%Too much

Just right

Not enough

0%

5%

10%

15%

20%

25%

Average work week 2006

<3636-4041-4546-5051-5556-60>60

Q: How many hours do you work in an average week?

Average work week:45.8 hours

Work/Life Balance


Q: Is this more, less or about the same number of hours you worked in the past?

0%

10%

20%

30%

40%

50%

60%

2006 Hours worked

MoreLessSame

Staff Turnover


Q: In regard to staff turnover, how many existing positions were filled in 2005?

3.6%4.6%

23.0%15.0%

20.6%17.0%17.0%

0% 5% 10% 15% 20% 25%

11 or more

8 to 10

4 to 7

Three

Two

One

None

Average: 3.1 Positions Filled

Technician Turnover


Q: On average, how long do certified veterinary technicians typically stay employed with your practice?

9.8%

11.9%

36.0%

20.0%

13.5%

9.0%

0% 10% 20% 30% 40% 50% 60%

11 or more

8 to 10 years

4 to 7 years

3 years

2 years

1 year

Average: 5.2 Years

Technician Duties


Q: What procedures would you feel comfortable allowing a certified veterinary technician to perform if accepted by your veterinary state board?

7.7%

9.0%

9.4%

40.0%

46.0%

69.0%

93.0%

95.0%

0% 20% 40% 60% 80% 100%

Other

Removal of small growths

Neuters

Incision for placement of catheters

Basic suturing

Simple dental extractions

Catheterization

Dental phophys

Response to Client Complaints


Q: Who responds to client concerns/complaints about the practice’s delivery of medical care?

46%39%

1%15%

Veterinarian

Veterinarian, but Technician Tries First

OtherTechnician

Finding Qualified Help


Q: Can you find qualified technicians in the area in which you practice?

Q: Can you find a qualified associate veterinarian in the area in which you practice?

62%38% Yes

No 70%30%

Yes

No

Finding Qualified Help


Q: Does your practice plan to hire additional veterinarians in the next 2 years?

51% 49%

Yes No

2006-08

Q: If yes, how many full-time and part-time veterinarians does your practice plan to hire?

Average: 1.3 Part-Time

Average: 1.3 Full-Time

* BASE: 287

0.9%1.3%

0.9%0.0%

1.7%1.3%

2.6%4.3%

12.9%

12.8%

81.0%80.4%

0% 20% 40% 60% 80% 100%

5+

5

4

3

2

1

Full-TimePart-Time

Hiring Trends


Q: How many new positions were created in 2005?

0.7%0.5%

4.0%8.0%

14.0%29.0%

42.0%

0% 10% 20% 30% 40% 50%

11 or more

8 to 10

4 to 7

Three

Two

One

None

Average: 1.2 New Positions Created

Career Satisfaction


Q: Do you intend to stay in private practice your entire professional career?

72%6%

10%12%

Yes

No

Don't Know

Not sure

In 1997: 85 percent reported they would stay in private veterinary practice their entire professional career.

State of the Profession 2006 Research Objectives Document professional/economic issues facing veterinarians. Identify trends within the delivery of.

Documents

practice management

career surveyposition

career surveyabout

career direction

average month

treatment of pets

clients decisions

salary survey4