Veterinary Consulting Helps Hospital Increase Value and Cash Flow
Dr. Rebecca Coll purchased Harvey Animal Hospital in Detroit in 2012. Like many veterinarians, this milestone marked the achievement of a lifelong goal in her veterinary career and the beginning of her career as a business executive.
Dr. Coll’s efforts to learn more about the business side of her practice led her to participate in Veterinary Management Groups (VMG). Katz, Sapper & Miller manages VMG’s benchmarking database, VSG DATALINK™, and often presents on the latest industry benchmarks and trends. As Dr. Coll learned more about the business of veterinary medicine and industry benchmarks, she sought a trusted advisor focused on veterinary hospitals who could help her understand and improve her practice’s financial performance.
Dr. Coll previously worked with an advisor who did not have experience with veterinary hospitals. An initial review of her financials and returns by KSM’s veterinary consulting team revealed the financials were not properly organized. KSM worked with Dr. Coll to make the necessary adjustments to the financials so she could begin using them to make management decisions.
After completing the initial review and adjustments, she hired KSM to develop and implement a customized plan to increase the hospital’s profitability and to streamline operations. With an accurate measure of the practice’s financial position, Dr. Coll could now begin to understand the mechanics behind the bottom line and the actions she could take to improve the numbers.
KSM’s veterinary consulting team scheduled quarterly meetings with Dr. Coll to analyze her latest financial numbers. The consulting relationship focused on analyzing and interpreting benchmarks and key performance indicators to identify opportunities at her practice and creating a specific action plan outlining the steps she could take to reach those goals. The plan from the start was to empower her with the knowledge and the tools that she needed to make her practice successful.
Compared to other veterinary hospitals in the region, Harvey Animal Hospital is now among the top performers measured in DATALINK™. Dr. Coll’s earnings before interest, taxes, depreciation, and amortization (EBITDA) as a percentage of gross revenue has grown by approximately 60%. That has substantially increased both annual cash flow and the overall value of her practice. In addition to the improved financial health of the practice, Dr. Coll has greatly improved her understanding of the information contained in the financial reports. She is able to identify the challenges and opportunities represented in the numbers and can make adjustments at her practice accordingly.
As veterinarians, we go to school to learn how to care for animals, so the business side of running a veterinary hospital was totally new to me. KSM has been so helpful in giving me a clear picture of my hospital’s performance and teaching me how to keep my practice financially healthy.
– Dr. Rebecca Coll, owner of Harvey Animal Hospital
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