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Message
re: OT Veterinarians- Business Question
Posted on 8/30/17 at 10:51 pm to TheCurmudgeon
Posted on 8/30/17 at 10:51 pm to TheCurmudgeon
quote:
B. How the hell do you guys make enough profit to live on, much less live well? I can't figure it out
Met a stripper at Visions who was a Vet in Houston. SMOKING hot Asian chick. She bought out a high volume practice but had a ton of overhead and needed extra cash in the short term. A couple weekends a month she'd travel down here to work the clubs (she obviously wasn't going to do it in her town).
I know every stripper is a "future brain surgeon or rocket scientist paying her way through college," but this was legit. I ran a medical office for years, We had a lengthy conversation about every aspect of running an office, and she grilled me on employee salaries, benefits, insurance, retirement planning, payroll taxes, etc. No girl could fake her way through the conversation - hell, I was faking my way through it because she knew more details than I did about most of the stuff.
0
Posted on 2/20/18 at 9:34 pm to deeprig9
Bump, and for clarification....
There seems to be two schools of thought on this.
OT Veterinarians please clarify what is more customary.
Please choose from Option A or Option B.
"ProSal Scenario A"
Quarterly, your salary+benefits/payroll taxes etc = $25,000.
Quarterly, your production (minus low margin non-prod charges) = $100,000
Prosal percentage set at 20%.
You get 20% of 100,000, or $20,000. But $20,000 does not cover your $25,000 cost. Therefore, no bonus.
"ProSal Scenario B"
Quarterly, your salary+benefits/payroll taxes etc = $25,000.
Quarterly, your production (minus low margin non-prod charges) = $100,000
Prosal percentage set at 20%.
You've already been paid $25,000, so you get a bonus of 20% of the remainder being $75,000. Which would be a quarterly bonus of $15,000.
There seems to be two schools of thought on this.
OT Veterinarians please clarify what is more customary.
Please choose from Option A or Option B.
"ProSal Scenario A"
Quarterly, your salary+benefits/payroll taxes etc = $25,000.
Quarterly, your production (minus low margin non-prod charges) = $100,000
Prosal percentage set at 20%.
You get 20% of 100,000, or $20,000. But $20,000 does not cover your $25,000 cost. Therefore, no bonus.
"ProSal Scenario B"
Quarterly, your salary+benefits/payroll taxes etc = $25,000.
Quarterly, your production (minus low margin non-prod charges) = $100,000
Prosal percentage set at 20%.
You've already been paid $25,000, so you get a bonus of 20% of the remainder being $75,000. Which would be a quarterly bonus of $15,000.
Posted on 2/20/18 at 9:47 pm to deeprig9
Scenario A is what I've seen, but not like that. Base was 72k, bonus was anything over 30,000 a month gross earned a 18-21% bonus. Usually 18%
An associate has to gross at least 400k/yr to break even for practice, or so its said. Depends on the staff though. A good tech group can tack on 200k a year for a good delegating associate. Or cost the business
Base salary of 25k is low, bonus/pro sal or not, and if you're expecting a new graduate to hit 600k, i hope your staff is good or you are mentoring well- both are needed. Reality is very few practices have the staff to properly leverage an associate for earning and the Dr ends up pulling blood, cleaning tables, nail trims, etc. and then boss complains about the gross at the end of the month
An associate has to gross at least 400k/yr to break even for practice, or so its said. Depends on the staff though. A good tech group can tack on 200k a year for a good delegating associate. Or cost the business
Base salary of 25k is low, bonus/pro sal or not, and if you're expecting a new graduate to hit 600k, i hope your staff is good or you are mentoring well- both are needed. Reality is very few practices have the staff to properly leverage an associate for earning and the Dr ends up pulling blood, cleaning tables, nail trims, etc. and then boss complains about the gross at the end of the month
This post was edited on 2/20/18 at 9:48 pm
Posted on 2/20/18 at 9:53 pm to deeprig9
Are teeth cleanings part of that formula because that's what the youngest vet at the animal hospital where I take my pets is always pushing.
Posted on 2/20/18 at 10:05 pm to lsewwww
quote:
Base salary of 25k is low
Per quarter.
Posted on 2/20/18 at 10:08 pm to deeprig9
You have made this way to complicated. Pro-sal forms of compensation are easily the best situation for both associate vets and owners. It’s win win. If you produce you get paid what you deserve if you don’t then owner doesn’t get killed with some high salary you can’t justify.
I started with a flat salary and it sucked. My production well exceeded my salary so owners made money off of me. No bonus. Just increased my salary for the next year. It was frustrating.
No when doing Pro-sal it works best to just pick a flat percentage then breaking up food, medications, professional services. 22% services and 5% inventory items works out to about same a 18% on everything. I pay Associates a pro-sal style at 20%. You also have to consider your full compensation package is CE, vacation, malpractice, insurance, dea license, avma fees etc. adds up.
You do pro-sal at 20%, have base 100k, produce 600k then you get 120k total. That’s pretty standard.
I started with a flat salary and it sucked. My production well exceeded my salary so owners made money off of me. No bonus. Just increased my salary for the next year. It was frustrating.
No when doing Pro-sal it works best to just pick a flat percentage then breaking up food, medications, professional services. 22% services and 5% inventory items works out to about same a 18% on everything. I pay Associates a pro-sal style at 20%. You also have to consider your full compensation package is CE, vacation, malpractice, insurance, dea license, avma fees etc. adds up.
You do pro-sal at 20%, have base 100k, produce 600k then you get 120k total. That’s pretty standard.
This post was edited on 2/20/18 at 10:11 pm
Posted on 2/20/18 at 10:09 pm to lsewwww
quote:
bonus was anything over 30,000 a month gross
Gross meaning..... ???
Posted on 2/20/18 at 10:14 pm to LSUVET82
quote:
when doing Pro-sal it works best to just pick a flat percentage then breaking up food, medications, professional services. 22% services and 5% inventory items works out to about same a 18% on everything.
So you are saying 18% on GROSS, non-adjusted?
Gross meaning Gross. Revenue.... pure revenue... for anything rung up on a Dr's ticket.... whether it is vaccines, food, products, drugs, etc... total gross on that Dr's checkout??
Posted on 2/20/18 at 10:25 pm to deeprig9
Yes it gets complicated when you give different % to all these categories. So 20% of gross production revenue would be total owed to vet. Would only get bonus when 20% exceeded base salary. We calculate monthly. It’s easiest.
So yes agree on a percentage and a base. Need to know what earning potential is. If average doc is producing 500k then likely don’t want base of 100k. Some places pay 25% production with no base so vet takes risk. But if they produce then can be nice.
Average clinic runs 20-30% profit margins. So every $100 taken in. After all expenses are paid owner takes home 20-30 bucks.
So yes agree on a percentage and a base. Need to know what earning potential is. If average doc is producing 500k then likely don’t want base of 100k. Some places pay 25% production with no base so vet takes risk. But if they produce then can be nice.
Average clinic runs 20-30% profit margins. So every $100 taken in. After all expenses are paid owner takes home 20-30 bucks.
Posted on 2/20/18 at 10:38 pm to LSUVET82
Deleting since all the vets are offline now.
This post was edited on 2/20/18 at 10:57 pm
Posted on 2/21/18 at 10:40 am to Eightballjacket
quote:
Are teeth cleanings part of that formula because that's what the youngest vet at the animal hospital where I take my pets is always pushing.
Yes, teeth cleanings are part of the formula. Young doctors like doing them because it's one of the procedures they can usually do without supervision or having their hands held. And if your dog needs it, and you don't do it, gum infections can spread to their sinus, brain, and even to the heart. But it's not beyond the pale for a Dr to recommend it, even though it's not an urgent thing. Usually the DR can show you the teeth and it will be pretty obvious how bad it is, if it is needed
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