Operational Efficiencies for Equine Vets

Mike Pownall, DVMMcKee-Pownall Equine Services

www.mpequine.comwww.slideshare.net/mpownall

Expenses

• People• Product• Getting Paid

Processes • Need excellent software• HVMS

• Need systems• Need leadership• Need to measure• Benchmarking

Paying Vets

• Pay on what is collected• Pay on net

Pay on Collected

Base + Percentage

Pay on Net

Example = DRWhat are the costs involved?• Machinery – spread over 5-7 yrs• Service agreements• Repair• People• Archiving

Pay on Net

Example = DRWhat are the costs involved?Charge - $46Costs - $10Pay commission on $36

Pay on Net

Example = Bute PowderWhat are the costs involved?Charge - $15Costs - $8Holding cost – 20% or $1.6015-9.60= 10.40 to pay commission

Are Your Vets Efficient

Accounts Receivables

Accounts Receivables

• Easy to do….. If you have the resolve.•We are not bankers.• Easy to implement

Accounts Receivables4 Tiers

• Great accounts• On the fence – COD• New clients – COD• Pond Scum

Accounts Receivables

Ave Day AR

Gross ReceivablesNet Sales/365

Accounts Receivables

Ave Day AR

75,000500,000/365

54.75

30 or less

Accounts Receivables

Accounts Receivables

Inventory• 2nd largest expense in a practice

Inventory

• Closed pharmacy• Requisitions• Electronic ordering• Min/Max• Uniformity• Bulk purchasing?

Inventory• Regular counts• AA = > 5% sales weekly• A = 5-15 % sales

quarterly/monthly• B = 20-40% sales 6 months• Everything else = yearly

InventoryInventory Turns

COGSAve Inventory

Ave Inventory = Beg Inv + End Inv 2

InventoryInventory Turns

300,000 = 7.540,000

Ave Inventory = 30,000+ 50,000 2

Want 12 or more

Inventory & ARTypical

• Pay for meds in 30 days• Get paid in 50+ days• Takes us over 30 days to sell

inventory• Taking a hit 2 times.

Inventory & ARGoal

• Pay for goods in 30 days• Get paid in < 30 days• Sell inventory in <30 days

Summary• Marketing• Brand• Social Media• Operational

Efficiencies

Thank You