Looking forward to a prosperous year

There's no arguing that there are more pet owners than ever before. Sixty-three percent of U.S. households own a pet today—a significant increase from the 56 percent of households owning a pet in 1988, according to the American Pet Products Manufacturers Association (APPMA). And more than ever, pet owners are proving their furry housemates are more than just animals. For example, 56 percent of respondents to the AAHA 2004 Pet Owner Survey say they'd be "very likely" to risk their life for their pet's life.

These owners are more emotionally attached and more apt to open their pocket book. Fifty-three percent of respondents to AAHA's survey say they're spending more on their pet now than they did three years ago. And the APPMA reports pet owners spent $8.2 billion on veterinary care alone in 2004.

So what exactly is the effect of all this growth on the veterinary profession? Well, there could be a downside from a legal standpoint. (See "The Shift in Owner Perception".) On the upside, practices are growing.

Signs of growth

More practitioners (89 percent) responding to the 2005

Veterinary Economics

Business Practices Study expect their total gross revenue to increase in 2005, compared to 74 percent who anticipated growth in 2003. And 68 percent of this year's survey respondents report more work than last year. Only 46 percent responding to the 2003 survey said they had more work than 2002. Finally, more practice owners plan to add another doctor than did two years ago. (See "Plans for the Coming Months".)

Coming up : Plans for the coming months

A strong increase in income could be fueling the increased optimism, says Howard Rubin, CEO of the National Commission on Veterinary Economic Issues (NCVEI). The 2004 AVMA-Pfizer Business Practices Study, conducted by Brakke Consulting Inc., shows a 41 percent increase in income from 1997, after adjusting for inflation.

"In the late 1990s, many practitioners were undercharging," Rubin says. "And we've seen some critical fee increases that veterinarians needed in order to catch up. While fees aren't the final solution, it's nice to get our first priority addressed."

The bigger shift, Rubin says, is understanding that it's OK to make money. Though many veterinarians still feel uncomfortable with the prospect of making money for themselves, they're finding that a financially successful practice depends on their ability to manage their businesses effectively.

"Veterinarians are recognizing that they need more than scientific and technical skills," Rubin says. "And veterinary schools are certainly recognizing the need to balance leadership, communication, science, and technology."

Trend to watch : The shift in owner perception

Some evidence: Campuses nationwide now boast 17 chapters of the Veterinary Business Management Association—a student-managed group that focuses on increasing business knowledge. And an informal survey of veterinary school deans pointed to an increased focus on business-management topics in the schools' curriculums. The deans say their current students will be better prepared for financial management than students who graduated 10 years ago.

Dedication to practice

It's clear that on the whole veterinarians are a learning group—you strive to improve your careers, your working environments, and the profession. And you're more dedicated to their jobs than the average American. Seventy-three percent of veterinarians say they'd still work even if they won $10 million, according to the 2005

Veterinary Economics

Job Satisfaction and Professional Outlook Study. Only 55 percent of working Americans would continue to work, according to the Gallup Organization's 2004 Work and Education poll.

Figure 1 : Certain job aspects rate low

Yet veterinarians aren't as satisfied with certain job characteristics as the average working American, especially when it comes to vacation time and flexibility of hours. (See Figures 1 and 2.)

Figure 2 : Minimal change in viewpoint

The key to continued financial success, says Roger Cummings, a Veterinary Economics Editorial Advisory Board member, is to continue to "provide levels of service that deliver value to the pet owner." Of course, you also need to enjoy practice, but most veterinarians do. In fact, 59 percent of respondents to the 2005 Veterinary Economics Job Satisfaction and Professional Outlook Study say they're happier today than they were five years ago—and that's something to smile about.