Revenues Up or Down? Industry shows a mixed bag
Depending upon the geographical location, species served, and practice type owners are reporting varied financial success in 2009. The industry itself is expected to grow by 9% annually and exceed $34 billion by 2013 according to Packaged Facts, a research firm from New York. Some practices report a drop of over 5% in revenue, but data from 120 hospital in Veterinary Metric’s database indicate revenue from January thru may 2009 versus 2008 was down 2% and wellness revenue down only 0.3%. Research conducted by GattoMcFerson CPA’s show California general “day” practices have increased 2009 revenue (price increase adjusted) although speciality and emergency practices have shown declines.
Practice with the strongest success report wellness testing, nutritional sales and elective services have increased in part due to more time to discuss options with clients since appointments have been reduced. Good communication leads to understanding and compliance. These factors are driving profits in practices that take advantage of good marketing, management, client education in addition to the practice of good quality medicine.