PRACTICE OVERVIEW KPIs
Please note that unless otherwise specified, the period these KPI’s refer to is the last (most recent) completed financial year. If financial information for that period is not yet available, you will need to revert to the most recent completed financial year prior to that.
Normalised Net Profit %
The net profit of practices is so often miscalculated and misrepresented that, at the risk of adding some complication to your work, we feel it is important to get this spot-on. For a true comparison of profitability quite a few adjustments need to be considered (beyond those listed on your spread sheet) and these come under the following categories;
1. Principal/s Salary Adjustments
If the principal/s salary is more or less than the deemed market rate an adjustment needs to be made. This salary should be appropriate for any clinical or administrative work the principal/s are performing for the business. The definition of a true market rate for a principal varies but we will deem it to be $150,000 PA. This applies to averaged 38-50 hours per week work in and or on the business. If you work less or more than this range let us know and will help you make an appropriate adjustment.
2. Principal/s Superannuation Adjustments
If the principal/s contributes more or less than 9.5% of the deemed market rate salary for hours worked, please add back or remove this from the profit.
3. Rent Adjustments
If you own your own practice building/s and you are not paying a local market rate for rent appropriate for a commercial premises fitted out and zoned for medical use please make an adjustment. If you are not sure on what the market rate per m2 should be please contact a local real estate agent that handles commercial leases in your area for advice.
4. Stock/COGS adjustments
If you receive a wholesalers discount, product rebates or rebates on any other elements of COGS (e.g. external pathology/cremation/oxygen). If it comes with the option to receive either a discount on bill or the equivalent instead as personal benefits and you go for personal benefits; please add the equivalent amount back to profit.
5. Debtor Adjustments
If debtor amounts stay more or less the same year to year no adjustment is necessary. If they have fluctuated significantly an appropriate adjustment should be made i.e. for increased debtors reduce profit and decreased debtors increase profit.
6. Business Loan Interest, Equipment Leases and Depreciation
An adjustment should be made for any interest you are paying on loans for the business if you have them, equipment/work vehicle leases and depreciation for eligible items i.e. these should be added to the profit.
7. Low Value Equipment
If your accountant applies the faster, small business rate of depreciation to low value items an adjustment should be made i.e. add this to the profit.
8. Personal Expenses
Adjustments should be made for any personal expenses run through the business such as private vehicle use, groceries, utilities not related to the business, travel & dining i.e. if these are unrelated to the running of the business these all need to be added back to the profit. If you have engaged in personal development work unrelated to the business but listed as a staff training expense this should be added back also.
Growth in Profit %
Self-explanatory: comparing last complete financial year to previous complete financial year. Please apply a “-“ if profit has reduced period to period.
Annual Turnover $
Remember all turnover/revenue is considered excluding GST.
Number of full-time Equivalents
Refers to the number of full-time equivalent veterinarians in your practice for the period.
The easiest way to calculate this is look at your payroll information and add up the number of hours worked in by vets in your business, add in the clinical hours worked by the owner (that are not already detailed in payroll) and add in hours of any locum support provided.
To get FTE number divide this figure of total hours worked by the equivalent hours for the period that one vet working 38 hours per week would have worked, assuming 4 weeks annual leave a year (48 x 38 = 1824 hours).
Growth in Turnover %
Self-explanatory. Please apply a “-“ if profit has reduced last complete financial year compared to the previous.
Veterinary Fees Generated : Veterinary Salaries Ratio per Vet
The 5:1 rule applies to this statistic.
Veterinary Fees =
Please include veterinary specific services and veterinary medications provided in the course of veterinary work. Ideally exclude non-veterinary services e.g. grooming and unrelated merchandising and/or OTC unrelated to clinical service.
include wages, bonuses, fringe benefits (e.g. car) and super. Include ‘true market rate’ adjustments for clinical work done by owner/s not already included in payroll: for this benchmark we use pro-rata $100,000 per 38hr week plus super.
For the most accurate result calculate this fee for each individual vet over the last 12 months in your practice (or less for new employees)
Active Clients Per FTE
Our definition of Active Clients is either new clients or existing clients that
visited the practice and spent money in the last 12 months for the period assessed. For this benchmark we divide the total number of Active Clients for the period by the FTE number.
If unsure on how to generate this report with your software, it is worth working through
the process with you BMS technical support. Failing that, let us know.
New Client %
The percentage of those Active Clients that are new clients.
New clients = someone that came to your practice for the first time during that period.
If unsure on how to generate this report with your software, it is worth working through the process with you BMS technical support. Failing that, let us know. Result should not be entered as a decimal e.g. 10% not ‘0.1’
Lapsed client number per FTE
Our definition of lapsed client will be someone that visited your practice in the 24 months prior to the end date of the period assessed but not in the last 12 months prior to the end date of the period assessed. Divide the total number of lapsed clients by the FTE number.
If unsure on how to generate this report with your software, it is worth working through the process with you BMS technical support. Failing that, let us know.
The average monthly percent of vaccines due that are completed on time. If reporting permits provide average of up to last 12 months
COST % TURNOVER SUMMARY
The period these KPI’s refer to is the last (most recent) completed financial year. All the results should not be entered as a decimal e.g. 10 not ‘0.1’
Please note: for the purposes of accurate comparison we will be including any
adjustments applied to the normalised net profit calculation to the costs section also. Please ensure you have adjusted super for the principal.
Total Wages %
Please include the wages of your entire team, including any outside administrative support you may pay for, e.g. Bookkeepers. This figure needs to include Superannuation, bonuses and all out of hours payments.
In the case of the principal/s -please include market rate adjustment of $150,000 PA pro-rata 38-50 hour week working in and/or on the business to the Vet and Admin % parameters accordingly.
Wages – Vets %
Please include the wages of all veterinary team members. In the case of the principal/s performing a veterinary clinical role, please include pro-rata calculations. This figure needs to include Superannuation, bonuses and all out of hours payments.
Wages – Nurses, Receptionists and Kennel Hands %
Please include the wages of all non-administrative support staff in the team, including nurses, receptionists, kennel assistants, stable hands etc. This figure needs to include Superannuation, bonuses and all out of hours payments.
Wages – Admin %
Please include the wages of all administrative staff, including practice managers, office managers, bookkeepers etc. In the case of blended roles (e.g a nursing Practice Manager) please allocate the appropriate amount of wage accordingly. For example, a Practice Manager who nurses 1 day out of 5 per week, would have 80% of their wages allocated to admin and 20% to nursing. Same applies for Practice Principal working some clinical and some admin. This figure needs to include Superannuation, bonuses and all out of hours payments.
Cost of Goods Sold. Typically includes (but not limited to):
- Drugs & Supplies
- External lab
- Internal lab supplies and maintenance
- Pathological waste and sharps disposal
- Body disposal & cremation
- Radiography & surgical supplies
In instances where you are receiving a rebate from the industry provider and you are not using it to directly offset the COGS, please adjust this figure accordingly.
STRATEGIC PRICING : BROAD FEE STRUCTURE DETAILS
Please base all fee structure details on current values in your practice as opposed to last calendar or financial year. Please note all fees are to be presented INCLUSIVE OF GST.
Dispensing fee, injection, s4 mark-up
Dispensing fee pre-packaged refers to items like ear meds, eye meds, skin meds that do not require counting or packaging. The rest should be self-explanatory.
Please express all mark-ups as
Mark- ups on S4 Drugs
As you can see there are 3 potential fields to complete;
- What is the most common mark-up on your S4 drugs (mandatory), this is the % you apply above the cost price to the majority of the S4 products you dispense.
- What is the lowest mark-up on your S4 drugs (optional), if you adopt a variable strategy, please enter the lowest mark-up that you apply above the cost price of the drug.
- What is the highest mark-up on your S4 drugs (optional), if you adopt a variable strategy, please enter the highest mark-up that you apply above the cost price of the drug.
Does this apply to all S4s (Y/N –> if not, which)
Some practices have custom mark-ups for certain items – particularly high-cost medications. Please indicate if your mark-up varies and if so for which products.
If you do apply the same mark up to all your S4 drugs, please enter Y
If you do not apply the same mark up to all your S4 drugs, please enter N and click on the link to the S4 Markup exceptions sheet to enter this data.
Mark-up prescription food
Mark-up other food
While many practices sell multiple non-prescription food types/brands, please enter the mark-up that you use on your most commonly sold life-stage food.
Mark-up OTC flea, tick, fly prevention
Sometimes Practices sell multiple OTC flea, tick, fly prevention types. Please enter your most commonly used mark-up.
Sometimes Practices sell multiple shampoo types. Please enter your most commonly charged mark-up.
Mark-up OTC items e.g. toys, leads etc
Sometimes Practices sell multiple OTC item types. Please enter your most commonly charged mark-up.
Mark-up External Lab fee
Self-explanatory. If you have varying mark ups, please enter your most commonly charged mark-up.
STRATEGIC PRICING : DETAILED FEE ANALYSIS
Please base all fee structure details on current values in your practice as opposed to last calendar or financial year. Please note all fees are to be presented INCLUSIVE OF GST.
Consult Fee S.A. Standard
Small animal, standard length.
Consult Fee S.A. Extended
Small animal, extended consult e.g. skin, second opinion etc if this exists in your practice. Put “n/a” if not applicable.
Consult Fee S.A. Revisit
Small animal revisit consultation regardless of duration .
Consult Fee S.A. After Hours
Consult Fee Behavioural
If you do them, put “n/a” if not applicable.
House Call Consult Fee
Small animal including travel time up to 20min one-way.
Consult Fee L.A.
Large animal consult fee, n/a if small animal only practice.
Revisit Consult Fee L.A.
After-hours Consult Fee L.A
Travel Fee LA.
Self-explanatory, enter “n/a” if none exists.
Cost of microchip implant when performed as a stand-alone procedure in consult room. Please indicate in notes under the excel table if anything other than free local government registration is included in this fee.
Blood Collection Fee
A separate fee applied whenever blood is collected – “n/a” if none exists.
FNA and Cytology (including sampling, prep and analysis)
Cost of an in-house fine needle aspiration of a mass including sampling, preparation and analysis.
Smear and Cytology (including sampling prep and analysis)
Cost of an in-house ear smear and cytological examination including sampling, preparation and analysis.
Pre-anaesthetic Blood test (including collection)
PABT plus any fees associated with collection if applicable. As what is included can vary massively please provide notes under excel this table if more than a mini biochem profile (e.g. Idexx PAP) plus a PCV/TP. Please include a collection fee if one is normally charged.
MBA/GHP and CBC (including collection)
Multiple biochemistry analysis or “General Health Profile” plus a complete blood including any fees associated with collection. For the purpose of this survey do not include electrolytes if they would incur and additional fee to be run. Please include a collection fee if one is normally charged.
Hospital Ward Fee Dog
Essentially the ward fee is charged for admitting and keeping a dog in hospital for the day if they are having a routine procedure. e.g. minor surgery, diagnostic procedure, dentistry or grooming. This fee is different to the day hospitalisation fee which is charged when a dog is in hospital for the day requiring medical attention. You may have a different name for this fee, e.g. hospital short stay, hospital procedure.
If in lieu of a ward fee, you charge a day hospitalisation or 24-hour fee, enter that fee instead. If you don’t currently charge a fee for this, enter n/a
Day Hospitalisation Fee Dog 20kg
The cost of hospitalising a sick dog requiring medical treatment and ongoing care across the course of a day (not overnight) – if possible, please present the fee purely for hospitalisation i.e. exclude any daily re-exam fee, fluid maintenance fees, consumable fees. If this fee does not exist indicate n/a.
Overnight Hospitalisation Fee Dog 20kg (standard 24 hours)
Cost for up to 24hours standard hospitalisation including overnight. If possible, exclude any ancillary in-patient charges such as daily examination fee, consumables, waste disposal etc. If this fee does not exist, enter n/a. If this fee is the same as the fee for a Day Hospitalisation (ie no additional charge for keeping over night) please enter n/a.
Intensive Care Hospitalisation Fee Dog 20kg (24 hours)
Self-explanatory, enter “n/a” if none exists. If possible exclude any ancillary in-patient charges such daily examination fee, consumables, waste disposal etc.
Hospital Ward Fee Cat
Essentially the ward fee is charged for admitting and keeping a cat in hospital for the day if they are having a routine procedure. e.g. minor surgery, diagnostic procedure, dentistry or grooming. This fee is different to the day hospitalisation fee which is charged when a cat is in hospital for the day requiring medical attention. You may have a different name for this fee, e.g. hospital short stay, hospital procedure.
If in lieu of a ward fee, you charge a day hospitalisation or 24-hour fee, enter that fee instead. If you don’t currently charge a fee for this, enter n/a.
Day Hospitalisation Fee Cat
The cost of hospitalising a sick cat requiring medical treatment and ongoing care across the course of a day (not overnight) – if possible, please present the fee purely for hospitalisation i.e. exclude any daily re-exam fee, fluid maintenance fees, consumable fees. If this fee does not exist indicate n/a.
Overnight Hospitalisation Fee Cat (standard 24 hours)
Cost for up to 24hours standard hospitalisation including overnight. If possible, exclude any ancillary in-patient charges such as daily examination fee, consumables, waste disposal etc. If this fee does not exist, or is the same as the fee for a Day Hospitalisation (ie no additional charge for keeping over night) please enter n/a.
Intensive Care Hospitalisation Fee Cat (24 hours)
Self-explanatory, enter n/a if none exists. Exclude any ancillary in-patient charges such as daily examination fee, consumables, waste disposal etc. Self-explanatory, enter n/a if none exists. If possible, exclude any ancillary in-patient charges such as daily examination fee, consumables, waste disposal etc. If you charge an hourly fee, please enter it in the following field
Daily Inpatient Exam fee
A separate fee is often applied to cover the costs of nurse/vet examinations of inpatients that occur with each subsequent day they stay in the hospital. If this is not charged separately to your hospital fee please enter n/a.
IV Fluids Surgical (during procedure including setup)
Fee for elective I.V. fluids during the course of a procedure under anaesthetic. If this is a mandatory component of all anaesthetics in your practice and the fee is itemised, please include that fee. If not, please enter n/a.
IV Fluids (including setup)
Fee for setting up and maintaining IV Fluid Therapy for the first day in hospital for sick patients. Please don’t include any additional fees – purely the cost to place a patient on IV fluids on day 1.
IV Fluid Daily Maintenance Fee
A daily fee for maintaining the IV fluid delivery is often charged separate to the initial set-up fee for additional days in hospital i.e. covers nurse time, flushes, redressing, infusion pump use etc. Mark n/a if none exists.
IV Fluid Additional Bag
Fee charged for additional 1 litre bag of standard fluids when required if not included in a daily maintenance fee. Where the fluid bag is included in the daily maintenance fee and is itemised, please enter that amount.
General Anaesthetic (20 minutes)
Assume standard pre-med, IV induction and up to 20 minutes Isoflurane gas for a 20kg dog. If there is an itemised fee for the IV Fluid in your general anaesthetic fee, please deduct it.
Sedation (minor procedure/examination)
The cost of sedating a 10kg dog for a minor procedure/examination. Please also include the cost of the sedative drugs if these are charged in addition to the sedation fee.
Surgery rate per hour (standard)
Surgery rate per hour (orthopaedic & complex soft tissue)
Self-explanatory. If you don’t have a higher rate for ortho or complex surgery, please enter the same value as your routine surgery rate.
Theatre Fee (standard)
Theatre fee for a non-orthopaedic surgical procedure, e.g lumpectomy
Radiographs (2 plates excluding anaesthesia)
Cost of taking 2 views (2 separate exposures), excluding any fees for sedation or GA. If all x-rays are taken under sedation or GA – please deduct a proportionate amount for this from the total price.
Ultrasound Abdomen (excluding anaesthesia)
Cost of performing a complete abdominal ultrasound (an examination of the entire abdominal cavity). This is to exclude the cost of any sedation or GA. If you have a package price where sedation and GA is not itemised, please deduct the according cost from the original fee.
Dental Radiographs (full mouth)
The cost of taking dental radiographs of the full mouth excluding anaesthesia. If your prices differ for cats and dogs, please provide fee for dogs only.
Dental Grade 1 Scale and Polish Dog
Fee for scale and polish for 20kg dog with Grade 1 dental disease, including GA and excluding any extractions. As standards vary from practice to practice please exclude pre-GA bloods, fluids and dental radiographs if possible. Please indicate in your notes if this does include radiographs.
Dental Grade 1 Scale and Polish Cat
Fee for scale and polish for a cat with Grade 1 dental disease, including GA and excluding any extractions. As standards vary from practice to practice please exclude pre-GA bloods, fluids and dental radiographs if possible. Please indicate in your notes if this does include radiographs.
Euthanasia and Standard Aftercare Cat
In-house euthanasia including burial or non-individual cremation.
Euthanasia and Standard Aftercare 20kg Dog
In-house euthanasia including burial or non-individual cremation.
Environmental Levy Fee (or similar)
Fee to offset the cost of sharps and biological waste disposal as opposed to bodies, discarded tissues, bloody swabs or anything which is not appropriate for general waste.
VET SERVICE BENCHMARKS
Please base all vet service benchmark details on the last 12 calendar months in your practice as opposed to last financial year.
Once again accuracy for these benchmarks will be greatest if you aim to calculate your data over the last 12 months. For team members that have been with you for less than 12 months you may need to extrapolate from the period they have worked.
Per Vet Per Opportunity/Year
With Per Vet Per Opportunity Per Year benchmarks we will deem “opportunities” to be the main occasions where vets might identify primary illness e.g. First consult, revisit consult, juvenile vaccination, annual vaccination. The total number of opportunities for the individual will need to be calculated for the period being assessed. Then total number of the specific service provided for this period will be divided by the total number of opportunities and expressed as a percentage.
Consults per Vet PRFTE/year
Number of initial Small Animal consults (patient presents for new health issue) per PRFTE vet. If you record annual health examinations during vaccination as a consultation, please exclude these from your tally.
Revisit Consults per Vet PRFTE/year
Number of revisit/repeat consults per vet PRFTE /year.
Revisit Consults/Primary Consults as %
Revisit Consults per vet PRFTE/year divided by Consults per vet PRFTE/year and expressed as a percentage.
Dentals per Vet PRFTE/year
Number of dental procedures per vet PRFTE/year in your practice excluding in- consult dental examinations.
Dental Radiographs per Vet PRFTE/year
Number of patients radiographed for dental procedures, per full time vet equivalent per year in your practice.
NB: If you take multi views per patient, e.g. four, this would still count as 1 patient radiographed. If Radiographs are performed as part of a package for dentistry, please use these numbers.
General Anaesthetics per Vet PRFTE/year
Number of general anaesthetics performed per vet PRFTE/year in your practice. Please include anaesthesia associated with de-sexing and dentistry.
Please include anaesthesia instances where it may be included as part of a package price e.g. with de-sexing and dentistry.
Surgery Performed per Vet PRFTE/year
This parameter assesses how much surgery an individual is performing and is normalized to pro rata a full-time equivalent vet to help permit more accurate comparison to benchmarks. The purpose of this benchmark is to identify individual vets that could benefit from training and development that would make them more confident and efficient in performing routine and non-routine surgical procedures.
The best way to calculate this, is to use your VBMS to search for individual instances of surgery being performed by that team member in the period assessed. Of course allowances must be made for team members who don’t have equal access to surgery shifts when assessing this benchmark.
N.B; please be sure to include de-sexing in the tally for surgery.
Hospitalisation Charged per Vet PRFTE/year
With this parameter we are looking for how much work in the hospital is attributed to caring for sick patients e.g. medical care, diagnostic work-ups. Once again, we are also looking to see if an opportunity to develop team members in medical case management.
Calculate number of 24 hour periods of hospitalisation charged per vet PRFTE/year e.g. approx. 48hrs of hospitalisation would be 2 OR hospitalisation just for the day would be 0.5.
Where possible, record only medical case admissions and don’t include day hospitalisation for surgical procedures. If accurate searching does not permit this, the total number of surgeries (with a factor of 0.5) could be removed from the total number of hospitalisations.
Radiographs per Vet PRFTE/year
Number of patients radiographed per year per vet PRFTE; count multiple views in a single examination as one, include multiple separate radiographic examinations for the same patient if applicable and exclude dental radiography.
In-house Cytology per Vet PRFTE/year
Number of in-house cytological samples performed per vet PRFTE/year in your practice e.g. FNA, skin scrapes, ear smears
Blood Tests Run per Vet PRFTE/year
Number of blood tests run per vet PRFTE/year that includes more than 1 body function e.g. PABT, MBA/GHP. Exclude things like serial progesterone assays, serial blood glucose, serial PCV’s LDDST’s, ACTH stims, serology which all technically fall under the 1 body function banner.