Operational Efficiencies
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Operational Efficiencies

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I gave a presentation on operational efficiencies to the Louisiana Veterinary Medical Association Equine members focusing on vet compensation, AR and inventory processes. These are 3 areas where any ...

I gave a presentation on operational efficiencies to the Louisiana Veterinary Medical Association Equine members focusing on vet compensation, AR and inventory processes. These are 3 areas where any veterinary practice can make huge inroads to help reduce expenses.

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Operational Efficiencies Operational Efficiencies Presentation Transcript

  • Operational Efficiencies for Equine Vets
    Mike Pownall, DVM
    McKee-Pownall Equine Services
    www.mpequine.com
    www.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 = DR
    What are the costs involved?
    Machinery – spread over 5-7 yrs
    Service agreements
    Repair
    People
    Archiving
  • Pay on Net
    Example = DR
    What are the costs involved?
    Charge - $46
    Costs - $10
    Pay commission on $36
  • Pay on Net
    Example = Bute Powder
    What are the costs involved?
    Charge - $15
    Costs - $8
    Holding cost – 20% or $1.60
    15-9.60= 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 Receivables
    4 Tiers
    Great accounts
    On the fence – COD
    New clients – COD
    Pond Scum
  • Accounts Receivables
    Ave Day AR
    Gross Receivables
    Net Sales/365
  • Accounts Receivables
    Ave Day AR
    75,000
    500,000/365
    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
  • Inventory
    Inventory Turns
    COGS
    Ave Inventory
    Ave Inventory = Beg Inv + End Inv
    2
  • Inventory
    Inventory Turns
    300,000 = 7.5
    40,000
    Ave Inventory = 30,000+ 50,000
    2
    Want 12 or more
  • Inventory & AR
    Typical
    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 & AR
    Goal
    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