I don't care about this data ... maybe you shouldn't either

Getty ImagesIn an article last month (“Does new data show veterinary prices dropping?”), there were details on two seemingly conflicting reports on veterinary fees. I'll tell you why I think study results such as these always need to be taken with a grain of salt.

Fees are up ...

First, a U.S. government study based on limited data collected by the Bureau of Labor Statistics indicated that fees for veterinary services increased 15 percent during the postrecession years of 2009 to 2013. That sounds significant but may have been a bit spurious. This was a small sampling of phone calls to U.S. practices requesting the prices of a few “common” products or services.

Still, the government says fees are up-so how should veterinarians react? We might pat ourselves on the back and breathe a sigh of relief. Practice owners who've seen stagnant revenue might say, “I knew things would turn around! Maybe my practice is next!” That would be a mistake-but let's look at the second study before I explain.

... but charges are down?

A recent survey of practice charges conducted jointly by VPI-Nationwide and Purdue University's Krannert School of Management indicated that veterinary charges (as reported for reimbursement through pet insurance) actually fell by 1 percent during that same period, 2009 to 2013. So what do we learn? As an old friend once told me, “I'll tell you one thing for sure: I don't know.”

Here's my take: I'm concerned that national trends and statistics mean relatively little to an individual veterinary practice. Surveys often simplify things  by reporting average results-so that you can see whatever you want to see and walk away telling yourself that your practice is unique.

When it comes to economics, pretty much any study can be used to prove or disprove either a point or a counterpoint. Time is the ultimate verifier.

A character in the Johnny Depp Western Dead Man said it best: “I wouldn't trust no words written down on no piece of paper.” We all have a tendency to see what we believe rather than believe what we see.

Your mileage may vary

Some practices increased some fees from 2009 to 2013 and saw revenue rise. Others, though, are still treading water, and for them right now the sky is falling. But even the owners of struggling practices tend to focus on what they do right and ignore everything else.

I'm worried that these surveys focus on the easy fix-fees and charges. Bump up your prices, rake in the revenue, right? We know it often doesn't work that way. Just look at the studies: Our prices have risen, but charges have fallen. What gives?

Well, you know that increased fees don't always turn into increased charges. You can increase a few line items in your practice software, but what often happens is that other services go undone or worse yet are provided but done at a discount or for free. An increase in prices without an accompanying increase in revenue is a shadow dance that winds up having a negative impact on everyone, including the patient. The client pays more for the same product, the patient gets less or the same care, and the practice sees no increased revenue.

Solve the real problem

Providing value-getting clients to pay increased fees-requires significant time and energy in better client communication and real value-added services. Here are four steps you can take to provide more value to clients-regardless of fees and charges:

1. Make sure you offer the best medical care you can. Surveys by the advocacy group Partners for Healthy Pets found that pet owners said they're looking for the best care. Don't assume your medicine is best. Check your competitors, learn about new services and products and stay on top of your game. Isn't that what we want to provide to our patients?

2. Provide a positive client experience. Go out of your way to educate and inspire pet owners and make it easier for them to do business with you. You'll get more frequent opportunities to serve and care for pets.

3. Give clients what they want. Offer everything they expect from you and then find out what else they want. Ask them regularly in surveys and in person whether they're satisfied. Don't ever assume you're satisfying clients.

4. Charge appropriately. Don't give away products and services. Don't assume clients can't afford care before you've even explained it. And double-check your record-keeping and documentation in the exam room, in reception and in your practice software.

We know we're seeing more and more competition from online pharmacies, corporate practice groups and newly opening practices. We must focus on differentiating ourselves as individual practitioners and as a profession if we want to stay relevant. Most of us went into practice because we loved our patients. Now we need to work harder than ever to make sure the pet owners who bring them in are educated and satisfied with our service. 

Dr. Paul is a nationally known speaker and columnist and the principal of Magpie Veterinary Consulting. He lives in Anguilla, British West Indies.