Rising costs and economic uncertainty plague many veterinary practices in the complex post-COVID era. Veterinary businesses must remain profitable but avoid pricing services in ways that limit pet owners' access to care.
According to the American Veterinary Medical Association (AVMA), US veterinary visits decreased approximately 2% to 3% between 2022 and 2023, a trend the organization expects to continue. Price increases have, on average, kept revenue from falling. However, price increases can only go so far when inflation means less spending power.
When operating costs go up, a blanket price increase seems logical, but broadening services may be another option. Adding or re-imagining veterinary services can diversify revenue streams and reduce dependence on any one service, creating new opportunities for client engagement and bringing more value to your clients.
Here are some ideas for bringing in new revenue – and how Provet Cloud software can help.
1. Introduce telemedicine
Telemedicine is no longer a novelty in veterinary practice. Clients expect digital convenience, and practices offering virtual consultations or asynchronous care communications meet that expectation. Telemedicine also unlocks a valuable new income source and reduces appointment congestion and stress on veterinary teams.
Telemedicine has broad applications and, depending on where you live, might be an acceptable way to establish a new veterinarian-client-patient relationship (VCPR). Use telemedicine for situations where a complete physical examination may not be needed, such as:
- Allergy and skin conditions
- Wellness and nutrition questions
- Post-op check-ins
- Behavioral consultations
- Minor rechecks
- Chronic condition updates
- Hospice care guidance
However you use them, remote services build trust and keep clients coming back, and you can use a dedicated application to capture charges for the time you already spend answering texts, calls, and emails. Choose a telemedicine application that integrates with your existing software for seamless in-person and virtual care.
2. Add financing options
Rising costs can be distressing for clients who only want to provide the best care for their pets. Flexible financing options, including insurance, monthly payment plans, and third-party credit providers, make it easier for clients to say “yes” to proposed treatment plans and bring pets in more frequently, which equals more revenue streams and stronger client relationships.
Financing options can:
- Increase treatment plan acceptance
- Help clients budget without compromising care
- Encourage repeat visits
Cloud-based veterinary software systems offer integrations with credit card processors, insurance companies, and loan providers so you can access all payment options from a single screen.
3. Build health/wellness plans
Wellness plans (aka Health Plans) can add a profitable revenue stream to your business and create predictable monthly cash flow. Service bundles are customizable and encourage clients to follow preventive care recommendations and stay with the practice long-term. Some benefits of wellness plans include:
- Recurring revenue
- Greater compliance
- Increased client loyalty
Offering wellness plans can help you shift client focus from reactive to proactive care and bring more clients into the practice. Monthly payments create a low barrier to entry for routine care services, which help establish relationships so clients return when their pet is sick or injured.
4. Launch a subscription service
The subscription model is everywhere – from streaming TV to meal kits, dog toys, clothes, and beauty products. When you find something you love or that makes your life easier, why wouldn’t you subscribe to access it consistently at a discounted cost? This same logic can apply to veterinary care.
Consider offering subscription services through your brick-and-mortar location or outsourcing to an online pharmacy platform designed for veterinary hospitals and integrated into your veterinary practice management software. Services that are ideal for subscriptions include:
- Parasite prevention bundles and discounts
- Home delivery
- Autoship
- In-house grooming packages
- Weight loss programs
5. Explore specialty services
Although veterinary professionals learn similar skills in school, they quickly acquire individual interests, strengths, and weaknesses in practice. If your team includes a veterinarian or technician with advanced skills or knowledge in specialty areas, consider how you can leverage them to provide clients with unique services. Rehabilitation, dentistry, surgery, ultrasound, hospice, and behavior are a few areas where your team can shine.
Niche services can provide a higher perceived value to clients and create new revenue streams, but often cost less for pet owners than visiting a specialty facility. They also allow team members to grow and flourish as they pursue their passions, helping them feel fulfilled and stay with your practice longer.
Key Takeaways
- Veterinary visits are declining because of economic pressures, and the AVMA expects this trend to continue.
- Diversifying your revenue streams helps protect your practice financially while providing added value to clients.
- Telemedicine, financing options, wellness plans, subscription models, and specialty services are options you can add to improve revenue, patient care, and client satisfaction.
More revenue and less stress with Provet Cloud
Veterinary medicine is resilient. However, practices must adapt to client needs and economic trends to remain successful. Diversifying revenue streams expands your ability to care for patients, provide value for your clients’ money, and ensure continued hospital growth.
Provet Cloud provides the tools you need to implement and manage changes in your practice, including innovations like telemedicine, integrated payments, and wellness plans.
Contact us to book a demo and see how the right software can support the next phase of your practice’s success.
