14 Sept 2016
The BVA has expressed concern over a survey demonstrating more than half of responding vet practices had below average profitability, while 15% generated "a negative value for net profit".
David Woodmansey
Job Title
15% of all practices generated a negative value for net profit.
The BVA has expressed concern over a survey demonstrating more than half of responding vet practices had below average profitability, while 15% generated “a negative value for net profit”.
Figures from the first SPVS Profitability Survey showed a total of 54.5% of responding practices scored “below average” or “poor” on its profit-rating scale.
The SPVS, working in conjunction with Veterinary Insights, based its snapshot figures on survey returns from 9 mixed animal, 4 equine and 88 small animal practices. The practices included 96 independent businesses and 5 joint-venture practices.
Practice turnover ranged from more than £10 million to less than £100,000.
Net profit was assessed as:
Revenue per vet (full-time equivalent):
Earnings per vet:
Almost a third of practices (30.3%) scored “excellent” or “good” and 15.2% scored “average”. However, 54.5% were “below average” or “poor”.
The median profit level for all practices was 10.6% and 15% of all practices generated a negative value for net profit.
The survey looked at five parameters:
Responding to the figures, BVA junior vice-president Gudrun Ravetz said: “Although this is a small survey, the figures that suggest more than a half of practices have below average profitability, and 15% have negative profitability, are a concern.
“One of Vet Futures’ ambitions is for ‘thriving, innovative, user-focused businesses’ and it is vital veterinary practices have a sustainable, profitable future so vets can continue to care for and protect the health and welfare of animals.”
