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.

1. Operational Efficiencies for Equine Vets Mike Pownall, DVM McKee-Pownall Equine Services www.mpequine.com www.slideshare.net/mpownall

2. Expenses People Product Getting Paid

4. Pay on Collected Base + Percentage

5. Pay on Net Example = DR What are the costs involved? Machinery – spread over 5-7 yrs Service agreements Repair People Archiving

6. Pay on Net Example = DR What are the costs involved? Charge - $46 Costs - $10 Pay commission on $36

7. 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

8. Are Your Vets Efficient

9. Accounts Receivables

10. Accounts Receivables Easy to do….. If you have the resolve. We are not bankers. Easy to implement

11. Accounts Receivables 4 Tiers Great accounts On the fence – COD New clients – COD Pond Scum

12. Accounts Receivables Ave Day AR Gross Receivables Net Sales/365

13. Accounts Receivables Ave Day AR 75,000 500,000/365 54.75 30 or less

14. Accounts Receivables

15. Accounts Receivables

16. Inventory 2nd largest expense in a practice

17. Inventory Closed pharmacy Requisitions Electronic ordering Min/Max Uniformity Bulk purchasing?

18. Inventory Regular counts AA = > 5% sales weekly A = 5-15 % sales quarterly/monthly B = 20-40% sales 6 months Everything else = yearly

19. Inventory Inventory Turns COGS Ave Inventory Ave Inventory = Beg Inv + End Inv 2

20. Inventory Inventory Turns 300,000 = 7.5 40,000 Ave Inventory = 30,000+ 50,000 2 Want 12 or more

21. 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.

22. Inventory & AR Goal Pay for goods in 30 days Get paid in < 30 days Sell inventory in <30 days

23. Summary Marketing Brand Social Media Operational Efficiencies

24. Thank You