Further resources
• Thinking of building or renovating? Visit dvm360.com/hd and register for the next HospitalDesign360 conference.
• Thinking of buying new equipment? Find out if you should rush to buy before Dec. 31.
Decision Data: Build, renovate or buy new veterinary equipment?
A dive into data yields numbers on capital improvements and investments different-sized veterinary practices made and how satisfied the owners and managers were with them.
It can often be difficult for a veterinary practice owner or manager to decide how to change their business model, when to add services and how to adjust for changing times. The team at dvm360 has been working with two of the sharpest veterinary analysts around (John Volk and Dr. Karen Felsted) to examine major changes practices have made and how happy the decision-makers were when all was said and done.
For the next few months, we'll be sharing results from their study as well as resources and commentary to help you make a decision as a practice owner or manager-or make a plan happen once you've decided.
This week, we look at the question of capital improvements or investments.
NOTE: Categories are based on the survey question, “What were your practice's gross revenues in 2016?” and questions about 2017 behavior and decisions.
Percentage of practices that made capital improvement or investment decisions
Practices with gross revenue of ...
Percentage
Less than $500,000
41%
$500,000-$999,000
50%
$1 million-$1.5 million
51%
$1.5 million-$2 million
49%
$2 million-$3 million
56%
$3 million-$5 million
68%
$5 million or more
56%
Source: dvm360 Decisions Survey; Dr. Karen Felsted of PantheraT Consulting; John Volk of Brakke Consulting
Capital improvement or investments made
Bought practice
Percentage
Less than $500,000
7%
$500,000-$999,000
4%
$1 million-$1.5 million
3%
$1.5 million-$2 million
0
$2 million-$3 million
4%
$3 million-$5 million
8%
$5 million or more
7%
Built/renovated practice
Less than $500,000
22%
$500,000-$999,000
21%
$1 million-$1.5 million
26%
$1.5 million-$2 million
24%
$2 million-$3 million
42%
$3 million-$5 million
40%
$5 million or more
53%
Bought new/replacement equipment
Less than $500,000
88%
$500,000-$999,000
90%
$1 million-$1.5 million
91%
$1.5 million-$2 million
87%
$2 million-$3 million
81%
$3 million-$5 million
75%
$5 million or more
73%
Source: dvm360 Decisions Survey; Dr. Karen Felsted of PantheraT Consulting; John Volk of Brakke Consulting
No. 1 reason for capital improvement or investment*
To increase quality of medical care
41%
Practice growth
18%
To increase efficiency
14%
Increased demand for services
11%
Added services that needed equipment
9%
Outgrew facility
4%
To position practice for sale
2%
*Only responses of more than 1% were included.
Source: dvm360 Decisions Survey; Dr. Karen Felsted of PantheraT Consulting; John Volk of Brakke Consulting
No. 1 benefit seen after capital improvement or investment*
Increased quality of medical care
43%
Increased efficiency
18%
Better working conditions
13%
Improved client service
11%
Additional revenue
4%
Positive client feedback
3%
More competitive in marketplace
3%
Improved profitability
2%
No benefits
3%
*Only responses of more than 1% were included.
Source: dvm360 Decisions Survey; Dr. Karen Felsted of PantheraT Consulting; John Volk of Brakke Consulting
Satisfaction with decision
Extremely satisfied
43%
Moderately satisfied
29%
Satisfied
26%
Dissatisfied
1%
Moderately dissatisfied
<1%
Extremely dissatisfied
<1%
Source: dvm360 Decisions Survey; Dr. Karen Felsted of PantheraT Consulting; John Volk of Brakke Consulting
For money's sake
We also asked practice owners and managers if the capital investment was made for tax purposes or availability of excess cash? The answer is, “Yup.”
- 58% for for tax purposes
- 62% to use excess cash.
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