Jul
7
2014

Have you noticed how veterinary practices are changing with the evolving economy and market? We recently spoke with several leaders in veterinary practice transitions and here's what we learned:

  • More veterinarians are opting for multiple practices. Today, it's not uncommon to see vets purchasing their second or third practices due to the economies of size and the increasing ability to source and hire a professional management team. With multiple locations, practices have greater opportunities to incorporate specialty services, such as laser technologies or animal boarding.
  • Practices are getting larger. The corporate influence is being felt as successful individual practices continue to be purchased by larger corporate or group practices. As with multiple-practice ownership, the influx of larger practices is driven primarily by economics. A group of doctors can deliver products and services more economically when working under one roof and sharing overhead costs.
  • The practice manager position is becoming more prevalent. As management of the practice becomes increasingly complex--particularly in regards to regulatory requirements, such as employee work hours, handling of controlled drugs, and IRS rules--the role of onsite practice manager continues to grow as a profession. Today's doctors recognize that they need additional expertise in running the day-to-day operations of their practices.
  • Young doctors are purchasing the building. Because interest rates for financing are still relatively low, more graduates are choosing to purchase commercial real estate and become landlords in addition to running their practices, generating cash flow and financial fluidity. In addition, they are insuring themselves at a greater rate than earlier generations did against exposures, such as disability, employment practice liability, and loss of income.
  • More women are owning successful practices. The perception years ago was that an increase in women veterinarians would negatively impact the industry, as they would not be as inclined to own their own practices. My, was that perception wrong! Women are purchasing and operating successful practices, and engaging in management, growth, and expansion operations with significant attention to detail and positive outcomes for their clients, patients, and staff.

To read more about trends in veterinary practices, see our Strategies for Success articles, "Hospital of the Future" and "Trends in Veterinary Practice Transitions" at wellsfargo.com/veterinarians.

And, if you're thinking of purchasing, starting, or expanding your practice, talk to us at Wells Fargo Practice Finance about our customized practice acquisition, start-up, and expansion financing packages. As an AAHA member, you automatically qualify for preferred pricing on competitive fixed-rate loans. You'll also receive our complimentary Project Planner with guidelines to help you manage your practice expansion or upgrade. 

To learn more about Wells Fargo Practice Finance, just call your financing specialist at 866-4MY-PAWS (866-469-7297) or visit us at wellsfargo.com/veterinarians.

 

 

All financing is subject to credit approval.
© 2014 Wells Fargo Bank, N.A. All rights reserved. Wells Fargo Practice Finance is a division of Wells Fargo Bank, N.A.

 

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Privacy Statement | Contact Us