Report: Veterinarians ’spooked’ by drop in revenue
By Gina Spadafori
December 26, 2008
From the VIN News Service:
Few veterinarians are currently experiencing what they had come to expect — double-digit increases in their veterinary practice’s gross, and the sagging U.S. economy is largely to blame.
That comes from a report by Brakke Consulting, Inc., which finds that pet owners are cutting back on veterinary care with 46 percent of those surveyed characterizing their financial health as worse in 2008 than in 2007.
The report, titled Economy and Pet Care, was conducted in October and November 2008 using surveys of 1,500 dog and cat owners and 225 small-animal veterinarians. Released last week, it predicts average transaction charges will barely grow by year’s end and a large segment of the profession will register declines in business.
That analysis appears in line with government reports released on Tuesday showing the U.S. economy coming to a screeching halt, with consumer incomes shrinking, jobless claims skyrocketing, housing starts plunging and huge drops in demand for big-ticket manufactured goods. Predictably, consumer spending also dropped, but when factored alongside falling gasoline prices, economists say Americans reluctance to open their pocketbooks seems even worse.
The doom and gloom doesn’t end there, with economists predicting that the nation’s longest recession in a quarter century will roll well into 2010. What’s feeding such a stormy forecast? Tuesday’s report from the Bureau of Economic Analysis shows the overall economy, as measured by gross domestic product, in decline at an annual rate of 0.5 percent in the third quarter of 2008. Analysts predict GDP also will fall in the first and second quarters of next year before making a small rebound next summer.
If that’s correct, this will be the longest-running recession since the Great Depression.
So what does that mean for veterinarians? “It has everyone spooked,” says Tom McFerson, CPA, ABV, a partner with veterinary consulting firm Gatto McFerson in Santa Monica, Calif.
Here’s the rest. Gonna be a rough ride for us for a long time, it seems.
They had a news piece here about how many types of businesses are creating opportunities for business during these times. Some were being fairly creative. I wonder if many vets would be/are willing to do a bit lower cost yearly check ups or “preventive care” check ups? (Or hold vac clinics etc) Instead of folks skipping the vet all together . . .
Comment by straybaby — December 26, 2008 @ 9:33 pm
When will these folks (who keep trying to figure out why people are keeping their wallets closed) figure out that people who don’t have jobs don’t spend money on much of anything? This is simply a common sense answer to all of the economic/financial mumbo jumbo we’ve been hearing. Put people to work and they will have the money to spend on houses, cars, and veterinarians.
I do know that it’s much easier to get in to see the vets at the university teaching hospital where several of my cats go. And the time spent waiting is much shorter.
Comment by catmom5 — December 27, 2008 @ 6:38 am
We’ve had to switch from mostly doing private training sessions to offering more group classes.
Am also thanking my lucky stars that husband specializes in forclosures…
Comment by Janeen — December 27, 2008 @ 10:14 am
This trend reversal should come as NO surprise to the profession. The last few years saw an increase in revenue & charges that far exceeded most folks percentage of “disposable income”. Along with some consumers educating themselves to sporadic fraudulent or “unnecessary treatments”, veterinary care is among the first to go, along with their “chattel”, meaning disposable pets.
It is most devasting to the animals, but the push and pull in “care”, of apealing to quality for your pet and then turning around when things go awry, referring to property status has its negative impact.
Personally, through my own costly and devasting experience, I feel this may cause a “shake-out” providing medicine to match accountability.
Quite frankly, I think human medicine may follow suit.
Comment by Barbara A. Albright — December 27, 2008 @ 11:37 am
Personally, through my own costly and devasting experience, I feel this may cause a “shake-out” providing medicine to match accountability.
Quite frankly, I think human medicine may follow suit.
Comment by Barbara A. Albright — December 27, 2008
Speaking as a person who’s trying to get an HMO to address the needs of a dying parent, I can absolutely say that I have always been able to get better care for pets than for people.
I’d personally rather we start with a reform of the human healthcare system. I honestly don’t have a fraction of the complaints about the veterinary profession as I do about human healthcare delivery. Although I absolutely agree that the veterinary professional has to stop trying to have it both ways — “pets are family” when care is considered and “pets are property” if things go wrong.
Comment by Gina Spadafori — December 27, 2008 @ 11:52 am
I have mutiple dogs.. the last “trip” to the ER specialty clninc south of Santa Rosa cost me $6400.. that’s right.. SIX THOUSAND four hundred dollars for four days.. and the puppy is fine.. that was for what turned out to be a simple surgery.. four days.. SIX THOUSAND dollars…plus.. is it any wonder why people don;t go…My friends dog needed some special care two days before Xmas in SF.. the ER clinic wanted him to sign his card over for a minimum of $2500 to even SEE the dog.. BEFORE any treatment.. he went to the SPCA.. surgery was indicated.. dog was there three days.. ( excellent care by the way).. total cost.. just under $2500.. including meds..I did think it was funny tho.. the dog is almost 11.. they asked him if he wanted to bring him back when he is better for neutering.. He gracefully declined..
Comment by bestuvall — December 27, 2008 @ 1:36 pm
Gina, I am terribly sorry to read of your parent. I have been there, however, medicare saw to all the needs of my terminally ill Mom. I was awestruck through the experience, because I had read or heard so many nightmare experiences. Keep advocating for the needs.
There are “pockets” of the country where veterinary care is sadly lacking with morality & ethics. Some folks & pets are extremely lucky and others aren’t. And it sounds like human care has its areas & health plans lacking too. I hope things turn around for you and your family member.
Comment by Barbara A. Albright — December 27, 2008 @ 10:41 pm
I am sorry to hear about the illness of your father and hope that your experience with hospice care becomes the comfort I know it can be. Please call a patient advocate at any hospice and ask for help. A fearless and experienced patient advocate is a warrior to behold, in some cases, the mere name of the advocate can bring an HMO to humble and total submission.
For my part, the ordeal of the last two years has altered my view of veterinary care and the expense. Many people, including those that had no animals sicken or die from melamine, have decided that they can no longer afford to have pets. Of those who still have pets suffering and dying from the effects of the melamine disaster, it is heartbreaking how many are on “the last cat”. And on the last dollar they can afford to spend on pet care for many years to come. There will be no pets at all in many homes of former pet parents. Many will have far fewer pets. A significant proportion of the pet owning population has been wrung dry.
The friend who chose death over bankrupting his family with medical care, made a similar painful choice. That is the state of human, and animal, medical care in the USA at this time.
Comment by Longlostpets — December 28, 2008 @ 10:52 am
Longlostpets, Amen—you brought up an important point. I, too, suspect joining the petless in years to come, although will advocate for decades more (God willing).
Once considered reasonably affordable, pet care somehow “jumped on the bandwagon” of hysterically rapid inflation that we felt with human medicine and education.
It either has to somewhat reverse or slow way down, to prevent pets from becoming a “luxury item”.
Gina, your title of “spooked” is appropriate and not lost for meaning. Perhaps the profession is now coming to realize that the euphoria driven economy was not going to continue, just as it has many times in recent past, although this one is a “biggie”.
Comment by Barbara A. Albright — December 28, 2008 @ 11:38 am
I don’t think it’s just the veterinary profession who is now coming to realize that the euphoria-driven economy wasn’t not going to continue. :)
Longlost … THANK YOU for suggesting patient advocate. Without getting too deep into all the backstory, there’s a denial going on with some family members, and I’m trying to deal with it. Not easy.
Comment by Gina Spadafori — December 28, 2008 @ 12:06 pm
Right now I’m feeling very thankful for two things:
My wonderful vet, Dr. Debbie
And the fact that my Dad didn’t have to suffer through a long illness while battling through red-tape to get proper care.
I suppose it sounds silly and empty, but if there is anything any of us can do to help, Gina, I’m sure all of us would jump at the chance.
Comment by Lori — December 29, 2008 @ 9:51 am
Thanks, Lori. Friends and family really matter when the going gets tough, don’t they?
Comment by Gina Spadafori — December 29, 2008 @ 10:20 am
Gina, I think every family goes through this and mine was no different. Everyone comes to acceptance at different rates and ways, creating hard feelings. My best advice is to carefully choose your words, have lots of ‘patience’ and pray that everyone gets up to speed and joins together again.
It is rough and I have no wisdom for shortcuts.
Many prayers, Barbara
Comment by Barbara A. Albright — December 29, 2008 @ 9:49 pm
Gina, do whatever it takes to get a good patient advocate and hospice involved, lie steal cheat, whatever it takes, it is that important.
As for the denial-been there, dealt with that.
Here is your script.
” It is agony for me, to fear that I am not doing my best for Dad, I simply cannot bear the pain of not doing my best, it would destroy me. I have seen how helpful this can be for other families, I want that help for Dad and all of us, it makes me feel better.
This is me, doing my best, deal with it.”
Then hug and kiss whichever family member is giving you grief, thank them for being so understanding and supportive and assign them a chore that is directly to do with the either the hospice or the patient advocate. “I knew I could count on you, it means so much to me!”
Repeat kisses and hugs.
This does several things, it makes the argument about _your_ feelings, thus ending the focus on denial, assumes and rewards the support of the person before they know what is happening and gets them working, not whining.
Get a bag with lots of pockets and a notebook to fit in it. Tape a big manila envelope to the back inside cover. Every single Doctors name, nurses name, appointment, test, every phone number, goes in that notebook, every sheet of paper you get handed goes in the envelope. Write it down. Empty envelope and file as needed.
On the back pages of the notebook, keep a list of chores to be done, appointments to be made, laundry to be done, whatever is eating up your time and assign those chores to the next person who asks what they can do. Assign lots of chores to those who annoy you, keep them busy. Your Dad might require rare items that can only be obtained in some nasty hole in the wall shop in Podunk, he might require them often. As often as they annoy you would be my choice. You get the drift.
Then tuck goodies into the bag for the long hours of waiting room time, a book and reading light, decent candy and nuts, hand lotion, aspirin, emery board. Think of what you would want if you were in a besieged castle, pack accordingly.
You are in for a rough time, be good to yourself.
Comment by Longlostpets — December 30, 2008 @ 7:27 am
I’m reading a lot of posts that sound critical of veterinary costs. In my work with tax prep I get to see what different professions tend to pay and vet’s tend to average below most. The average vet would make more money as a nurse, a plumber, a mechanic, or (until recently) a car salesman. And keep in mind that vet’s typically have to complete 8 years of college. For a little more perspective, after a recent toxin exposure both I and my cat had to get bloodwork done. We each had blood chemistries and complete blood counts checking the exact same things (I got copies of both). My vet charged less than $100. My doctor billed the insurance company over $900 for the labwork alone. For the very same test. Vet care is a bargain.
Comment by keepthebooks — January 20, 2009 @ 11:55 am