Drive Veterinary Hospital Profitability With Smarter KPI Reporting

Improving profitability at your veterinary hospital doesn’t mean spending hours poring over spreadsheets. Instead, focus on key performance indicators (KPIs), a few high-impact metrics that provide a clear, actionable snapshot of your hospital’s financial health.

Keep It Simple and Scalable

An effective KPI report should take no more than 15 minutes to review, ideally in a weekly or biweekly meeting between the hospital administrator and managing veterinarian. The goal is to highlight a few essential metrics without overwhelming the conversation with unnecessary data.

Start with three core areas:

• Revenue: Track total revenue and categories like professional services, lab, and pharmacy. It’s also helpful to review the average client transaction amount and the number of invoices per doctor.
• Labor: Monitor payroll for support staff by reviewing total hours worked and the average hourly wage. Calculating labor costs as a percentage of revenue can provide helpful context for staffing decisions.
• Direct Costs: Track drug purchases and other key supply categories, ideally as a percentage of revenue, to make year-over-year and week-over-week comparisons easier.

From Metrics to Meaningful Action

To make KPIs meaningful, always compare actual performance to budgeted goals. Without this comparison, KPI data becomes noise instead of strategy. From there, use trends to guide action. Look for patterns, investigate root causes, and assign accountability. Regularly reviewing KPIs allows you to make real-time adjustments that can directly impact your bottom line.

Download Volume 2 of KSM’s Veterinarian’s Guide to Best Practices for a closer look at how to utilize KPIs to track performance, guide decision-making, and strengthen profitability. Or contact our veterinary consulting team by filling out the form below.