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Citing a growing need by private practitioners for information about the profitability of their practices, the National Commission on Veterinary Economic Issues (NCVEI) and VetPartners announces the release of the Profitability Estimator. “Profitability is the one single metric that allows business owners to judge the level of their economic success. Unfortunately, most practice owners don’t get financial reports that give them this information” said Dr. Karen E. Felsted, CPA, MS, CVPM, CEO of NCVEI. “The Profitability Estimator is designed to fill that gap and give practice owners and managers the information they need to make intelligent business decisions.”

NCVEI and VetPartners collaborated on the design of the tool. “In recent years, members of the Veterinary Valuation Resource Council of VetPartners have seen an increase in the number of practices with no value or an exceptionally low value when appraised—i.e. No-Lo Practices” said Dr. Christine Merle, MBA, CVPM, Executive Director of VetPartners. “Quite unexpectedly, appraisers were also seeing low values in practices you would never normally expect it in. This low value was driven primarily by a lack of profitability and, to make matters worse, most owners of these low–profit practices were not even aware of their poor financial situation.”

This is the latest in a series of benchmarking tools developed by the NCVEI. Practice owners and managers can not only use the tools to calculate their profitability but to identify areas in which they are doing well financially and areas that need some work. “Profitability isn’t only important to practice value,” said Dr. Felsted. “Improved profitability is also instrumental in improving current cash flow and the practice’s ability to continue to offer good quality medicine. The NCVEI tools encompass significant financial and operational metrics that practices need to be reviewing regularly in order to manage their businesses more effectively,” said Dr. Felsted.

The tools can be accessed at www.ncvei.org. Comparative results will be available on the NCVEI website as soon as information from a minimum number of practices has been provided. These results will be updated daily as more practices provide data, offering the most timely, immediately accessible benchmarks available.

About NCVEI
The National Commission on Veterinary Economic Issues (NCVEI) was founded in January 2000 with a mission of raising the economic base of veterinary medicine. A wide-ranging group of benchmarking, pricing and communications tools as well as other resources are available, free of charge, at www.NCVEI.org. The Commission is a not-for-profit organization governed by a Board of Directors representing the three founding organizations: American Veterinary Medical Association, American Animal Hospital Association and the Association of American Veterinary Medical Colleges. Funding is provided by members of the NCVEI’s Sponsor Council that includes Merial, Hill’s Pet Nutrition, Veterinary Pet Insurance, Bayer Animal Health, CareCredit, Simmons Educational Fund, and the Western Veterinary Conference.
About VetPartners

A non-profit group of professionals, VetPartners serves and advances the veterinary profession with innovative, relevant, valuable, and ethical practice development solutions. Our members view integrity as their highest priority, strive to be responsible leaders, and dedicate themselves to continued personal and professional growth so they can better serve the profession. Our commitment to delivering results through close interaction and partnership is a core value for our members. For more information, see www.VetPartners.org.