The VHMA Files: Fight fee-setting frustration

GETTYIMAGES/Artem PovarovDo fees and competition vary by practice location? The Veterinary Hospital Managers Association (VHMA) polled practice management professionals to find out.

Overall, the number of competing practices in all locations has remained constant over the past few years. Among all respondents the two most often cited reasons for increased competition is a growing supply of qualified professionals and, to a lesser extent, population growth. Suburban and urban practices are more likely to report a decrease in the number of practices. Urban practices attributed the decrease to too much competition. Suburban practices cited the poor economy.

Most commonly, 52 percent of rural practices compete with one or two practices, while 47 percent of suburban practices compete with three, four or five practices. Twelve percent of suburban respondents reported more than 10 practices are located within a five-mile radius. Twenty-four percent of urban respondents identified more than 10 practices as competitors.

Despite the variations in competition, the service fees appear uncompromised. Close to half of all respondents report their fees are higher than those of their competitors, and 35 percent stated that their fees are right in the middle. Among rural respondents, 53 percent say their fees are higher than their competitors'. Fifty percent of suburban practices report fees that are higher than the competition and 49 percent of urban respondents say their fees are higher, while 43 percent report fees in the middle. 

In all locations, the availability of qualified team members has fueled the growth in practices. But competition doesn't necessarily drive down fees. In all locations despite the amount of competition, the preponderance of respondents were able to maintain a fee structure that exceeded the area average.

Christine Shupe, CAE, is the executive director of the Veterinary Hospital Managers Association. The association is dedicated to serving professionals in veterinary management through education, certification and networking.