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Market Watch: A new model: Look for opportunity
It may be time to rethink your practice's pharmaceutical product pricing


DVM360 MAGAZINE


Previously, I have raised the specter of alternative providers of veterinary services and products. The Veterinary Care Usage Study released in early 2011 pointed out that "fragmentation of the industry" is one of the significant factors contributing to declining pet visits to veterinarians. We used to talk about the fact that there were too many veterinary facilities—too many X-ray machines, too many surgical suites, too many clinics that were not being used to their potential. Certainly that must be considered. But, increasingly, the fragmentation has been in service and provider options.

Emergency care


Bait the hook: Pet owners now have many options for filling their pets' prescriptions. Examine your pricing to make sure your clients don't get lured away.
Veterinary care used to be a one-stop market. How things have changed. Forty years ago, emergency facilities were established largely with the intent of allowing veterinarians to eliminate after-hours calls. Emergency facilities probably lengthened the career, if not the life, of this veterinarian. Emergency care was provided, and the patient and client were referred back for follow-up care, including ongoing nursing and surgery.

Today, many emergency clinics provide sophisticated care far beyond triage and "a kiss and a promise" treatment. These facilities are staffed by veterinarians skilled in emergency care and frequently have incorporated specialists in critical care, internal medicine and surgery in the same facility. The primary care veterinarian may have little role in the emergency care and follow-up of a patient until the crisis is resolved. What has happened to your major surgery load in recent years? How many complicated medical cases do you hospitalize and manage in your clinic?

Vaccinations

Preventive care such as vaccination was once available only at a veterinary practice. Mobile vaccination clinics are nothing new to much of the country, but they are increasing in number, visibility and, yes, convenience through a growing presence in strip malls and at chain stores looking to provide another reason for people to visit them. Many pet owners associate vaccination as the primary reason they visit a veterinarian. Once that need is met, they don't see a lot of reason to go to the veterinarian. We already know that office visits are declining in number. What is happening to your vaccine numbers?

Spaying and neutering

Animal shelters provide early spay and neuter services and, in fact, insist that adopted pets be sterilized before adoption. What has happened to the number of spay and neuter procedures performed in your facility in the last five years?

Flea and tick control

Flea and tick control product sales have declined significantly in most veterinary hospitals. Online pharmacies have impacted veterinary drug sales in hospitals. In addition, today, over-the-counter flea and tick products are available at a number of local sources from pet stores to supermarkets and hardware and home improvement stores. Supermarket pharmacies and chain pharmacies are filling veterinary prescriptions at minimal fees as a convenience to their shoppers. Some major chains are experimenting successfully with inventorying full veterinary product lines and encouraging their customers to fill their pet prescriptions there while they shop. How are we ever going to compete against these market giants?


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Source: DVM360 MAGAZINE,
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