Practice Made Perfect A Complete Guide To Veterinary Practice Management Marsha L. Heinke Instant Download Full Chapters
Practice Made Perfect A Complete Guide To Veterinary Practice Management Marsha L. Heinke Instant Download Full Chapters
Featured on ebookfinal.com
https://ebookfinal.com/download/practice-made-perfect-a-complete-
guide-to-veterinary-practice-management-marsha-l-heinke/
★★★★★
4.6 out of 5.0 (74 reviews )
EBOOK
Available Formats
https://ebookfinal.com/download/veterinary-practice-management-3rd-
edition-john-s-m-bower/
https://ebookfinal.com/download/psychiatric-presentations-in-general-
practice-a-guide-to-holistic-management-second-edition-jacob/
https://ebookfinal.com/download/uncertainty-in-industrial-practice-a-
guide-to-quantitative-uncertainty-management-etienne-de-rocquigny/
https://ebookfinal.com/download/value-and-risk-management-a-guide-to-
best-practice-1st-edition-michael-f-dallas/
Practice Makes Perfect German Conversation 1st Edition Ed
Swick
https://ebookfinal.com/download/practice-makes-perfect-german-
conversation-1st-edition-ed-swick/
https://ebookfinal.com/download/a-guide-to-teaching-practice-
revised-5th-edition-louis-cohen/
https://ebookfinal.com/download/a-framework-for-value-management-
practice-michel-thiry/
Practice Made Perfect A Complete Guide to Veterinary
Practice Management Marsha L. Heinke Digital Instant
Download
Author(s): Marsha L. Heinke
ISBN(s): 9781583261729, 1583261729
Edition: Paperback
File Details: PDF, 6.59 MB
Year: 2012
Language: english
PRACTICE MADE PERFECT
A Complete Guide to Veterinary Practice Management
2ND EDITION
2
© 2012 by Marsha L. Heinke
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means,
electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without
permission in writing from the publisher. The forms may be reproduced for use by the person purchasing this
publication, but may not be sold, transferred, conveyed, or provided to any third party.
The Author and AAHA do not assume responsibility for and make no representation about the suitability or accuracy
of the information contained in this Work for any purpose, and make no warranties, either express or implied,
including the warranties of merchantability and fitness for a particular purpose. Neither AAHA nor the Author may be
held liable for adverse reactions to or damage resulting from the application of this information. Advances in veterinary
medicine or practice management may cause information contained herein to become outdated, invalid, or subject to
debate by various veterinary or other professionals. AAHA and the Author are not responsible for any inaccuracies,
omissions, or editorial errors, nor for any consequence resulting therefrom, including any injury or damage to persons
or property. AAHA and the Author shall be held harmless from any and all claims that may arise as a result of any
reliance on the information provided. Users should contact their own legal counsel or advisors with respect to the use of
this Work or any of the forms in their state prior to implementation.
ISBN 978-1-58326-172-9
2012007075
12 13 14 / 10 9 8 7 6 5 4 3 2 1
3
Contents
List of Figures
Acknowledgments
Glossary
References
Additional Resources
4
Index
5
List of Figures
6
Figure 8.2 Controlled Substance Log Sample Page*
Figure 9.1 Sample Product Tracking Form
Figure 9.2 Purchase Order System
Figure 9.3 ABC Analysis Graph
Figure 9.4 Calculation of Annual Turnover for a Veterinary Practice
Figure 9.5 Calculation of Annual Turnover for a Single Item
Figure 9.6 Calculating Economic Order Quantity
Figure 9.7 Mark-Up Pricing Versus Margin Pricing
Figure 10.1 Sample Patient Service Tracker
Figure 10.2 1099-B*
Figure 10.3 1099-MISC*
Figure 10.4 W-9*
Figure 10.5 Sample Credit Information Form*
Figure 10.6A Sample Collection Letter*
Figure 10.6B Sample Collection Letter*
Figure 11.1 Bookkeeper Examination*
Figure 11.2 Summary of Withholding Taxes*
Figure 11.3 Form 940*
Figure 11.4 Form 941*
Figure 11.5 Control System
Figure 11.6 Accountant’s Compilation Report
Figure 11.7A Balance Sheet: Assets
Figure 11.7B Balance Sheet: Liabilities and Equity
Figure 11.8 Income Statement
Figure 11.9 Statement of Cash Flow
Figure 11.10 Stockholder’s Equity (Statement of Retained Earnings)
Figure 11.11 Financial Statement Timeline
Figure 12.1 The Pet-Caregiver-Veterinarian Bond
Figure 13.1 Post-Visit Card*
Figure 13.2A AAHA Client Satisfaction Survey*
Figure 13.2B Client Satisfaction Survey*
7
Acknowledgments
Thanks to the reviewers of this second edition: Lisa B. Bell; Robin Brogdon, MA; Amanda
L. Donnelly, DVM, MBA; Michelle Guercio-Winter, CVT, CVPM; Charlotte Lacroix,
DVM, JD; John L. Meyer, PhD; Carolyn C. Shadle, PhD; and Gary Truman Esq. Their
comments and additions greatly enhanced this publication. Thanks also to the first
edition’s editorial board: Laurel Collins, DVM, ABVP; Richard Goebel, DVM; Charles
Hickey, DVM; Clayton McKinnon, DVM; and Hal Taylor, DVM.
8
1 INTRODUCTION TO MANAGEMENT
9
1 What You Need to Know About Management
Financially successful and professionally rewarding veterinary practices result from good
management. Good management doesn’t happen by accident. It originates in a strong
professional and career vision and in thoughtful planning and decision making. Although
management may be intuitive in some respects, managers of superior veterinary practices
purposefully plan, design, and implement management systems and protocols.
Once a burgeoning field drawing from general business resources, veterinary hospital
management has evolved into a specialized and essential component of successful veterinary
practices. It is founded in well-educated and skilled personnel. Acquiring comprehensive
knowledge and a full array of management skills may require formal education in business
and management. Nevertheless, basic practice management information can be helpful to a
wide variety of veterinary professionals, including practice owners, associate veterinarians,
veterinary students, office managers, bookkeepers, any employee with supervisory
responsibilities, and other stakeholders in the veterinary profession.
10
veterinary profession.
In The Practice of Management, renowned management guru Peter F. Drucker wrote,
“In a competitive economy, above all, the quality and performance of the managers
determine the success of a business; indeed, they determine its survival” (Drucker 1954
[1993], 1). Best-selling author Jim Collins has spent years researching companies,
managers, and their teams to discern what makes for sustainable success, or what Collins
calls greatness. In his 2001 book, Good to Great: Why Some Companies Make the Leap …
And Others Don’t, Collins concludes that business greatness results primarily from
conscious choice and discipline rather than from lucky circumstances. One important key
to practice success and survival is manager discipline to unfailingly adhere to core
principles.
This handbook of veterinary practice management provides information and resources
that will support your development of the skills, fortitude, and attitude needed to
effectively manage. Your disciplined performance as a manager may well determine the
sustained success, survival, and even greatness of the animal hospital you are managing.
Veterinary practices are no different from other small service-based businesses. Even in a
competitive, high-tech, consumer-driven market, great opportunities and potential
financial and professional success beckon. The entrepreneurial spirit nurtures a strong
competitive drive. Every passionate practice manager envisions a thriving veterinary practice
that accomplishes better animal care, more effective employee teamwork, and higher
economic return than does any other practice.
Indeed, personal energy and burning excitement support your determination to meet
the many challenges of building a practice: establishing a business plan, obtaining
financing, acquiring real estate, buying equipment, hiring employees, attracting clients, and
actively working in an admired profession. However, all this furious activity can blind a
manager to the difficulties that may ensue as a successful veterinary practice grows. You
cannot afford to ignore the potential adversities that exist, especially for practices that grow
quickly without a solid plan or governance.
All businesspeople encounter challenges that can undermine their dreams. Even the
most successful business owner can recount serious errors of judgment or other
shortcomings that hindered his own business in some way. Eventual success can spring
from the ashes of failure, but surely it is better to sidestep the errors that others have made
by being a good student. And, without doubt, too many management mistakes can
bankrupt a veterinary practice as easily as they can any other small business.
The U.S. Small Business Administration, citing statistics from 2000 compiled by the
U.S. Department of Commerce and the U.S. Department of Labor, Bureau of Labor
Statistics, stated that 69 percent of new businesses survive for at least two years, but only
half survive for at least five years. There can be many different reasons for business failure
11
or inability to thrive, and common management mistakes are among them. Significant
factors that threaten business success have been identified by both the Small Business
Administration and Dun & Bradstreet Credibility Corporation (see References). They
include the following:
Inadequate Experience. Lack of business and management experience can be an obstacle
to success in many professions, including veterinary practice. Most practice owners are
doctors of veterinary medicine. Doctors may have years of veterinary medical experience,
but formal training in any aspect of business management is the exception and not the
norm.
Lack of a Business Plan. The formality of planning forces a business owner to engage in
careful and strategic thought about business threats while analyzing service offerings,
marketing, fees, financing, competition, demographics, equipment and inventory needs,
and more.
Poor Capital Structure. New business owners often take on too much debt. This can be
a very real problem in today’s tech-heavy veterinary practice environment, which is replete
with extensive computer networks, tablet computers, lasers, digital imaging, laboratory
equipment linked with electronic record systems, and much more as computerization of
medical, surgical, and management functions increases.
A corollary problem is excessive capital investment in fixed assets. Veterinary hospitals that
emphasize diagnostics, surgery, dentistry, and emergency care often must purchase and
maintain high-value equipment. These practices must ensure good utilization of equipment
through adequate caseloads in order to justify the investment made. While it is nice to have
a wide array of veterinary equipment, a manager has to ascertain all costs of ownership and
plan pricing levels, case volume, and break-even requirements on fixed-asset investments
accordingly.
Inadequate Reserve Funds. The possibility of encountering inadequate reserves worries
many managers and especially threatens practices during volatile economic times. Even
when markets are stable, a practice needs a money cushion to self-insure against foreseen
and unforeseen events, such as vendor price increases, equipment breakage, and natural
disasters. Increased operational costs may result from seasonal fluctuations or from
unexpected causes.
Excessive and Premature Profit-Taking by Owners. Excessive profit-taking saps a
business’s ability to meet emergencies and support investments already made in a
workforce. Client service and repeat business are supported by practice reinvestment. For
example, owners must be sure to invest continually in employee training and education.
These areas may become truncated when cash is diverted instead to profit distributions.
Unplanned Expansion and Overexpansion. Overexpansion can result in overspending,
that is, spending that exceeds practice activity and outstrips the operating revenue a practice
can realistically achieve within an adequate period of time for client acquisition.
Unsuitable Location. A poor location for practice operations is a common problem. It
may be related to inadequate population density for the number of competing practices in
12
an area, poor visibility and road access, and similar factors.
Mismanaged Inventory. An oft-cited cause of business failure, mismanaged inventory
can be a significant problem for veterinary practices. Issues can include poor purchasing
procedures, theft, waste, and pricing considerations.
Poor Internal Controls and Execution. This issue relates to much more than inventory
problems. Management failure in accounting controls, client service consistency, and
overall employee cross-training is a common challenge for keeping a veterinary practice
healthy.
Lax Credit-Granting Practices. Extending credit to clients who are slow to pay or don’t
pay at all contributes to poor cash flow. Loose credit policies can result in a community
reputation that makes it increasingly difficult to collect and may cause friction in client
relations, as well as with employees who expect comparable financing for animal care.
Ineffective Marketing and Self-Promotion. Poorly executed marketing plans can hurt
practices in at least two ways. First, it’s easy to blow the entire marketing budget on
initiatives that do little either to gain new clients who establish permanent relationships
with the practice or to expand services to existing clients. Second, in service-based
businesses like veterinary practices, both managers and veterinarians often underestimate
the importance of personal relationships and word-of-mouth referral, even in virtual
communities on the Internet.
Underestimating the Competition. Not realizing that veterinary services operate in a
competitive market can lead to apathetic attitudes about clients and slack, irregular service.
Clients have a lot of choices, and the Internet has exponentially expanded opportunities for
buying products and finding information, even if it is incorrect. Veterinary practices must
maintain an edge with expert and consistent information that leads to the highest level of
client loyalty and compliance with care recommendations.
Failure to Change. Businesses sometimes fail simply through failure to change with the
times when change is rapid and inevitable. Flexibility and adaptation in moving fluidly into
new areas of expertise are key characteristics of businesses that survive even in the toughest
of economic times.
As this list of mistakes suggests, the most common reasons for business failure are poor
management and insufficient planning. If the veterinary business you manage is to be
successful, you will have to be on a constant mission of learning and continually use
management information and skills to think, plan, and direct your team strategically.
The verb manage derives from the Italian word maneggiare, which originally referred to
handling a horse or certain objects, such as tools. This word in turn came from the Latin
word for hand, manus. The meaning developed further in the seventeenth and eighteenth
centuries, when the word mesnagement developed in Middle French. It referred to
13
management of the household economy, and later, treatment of other people.
Modern definitions of management usually encompass human relationships as well as
the functions of accomplishing business goals. The industrial revolution spawned many
leaders in scientific management theory and application, such as Frederick Winslow Taylor
(1856–1915), Henri Fayol (1841–1925), and others. The definition of management as
“the art of getting things done through people” is commonly attributed to Mary Parker
Follet (1868–1933).
Since then, many other writers have incorporated art and science, relationship,
functional, and goal-setting concepts into definitions of management. Paul Hersey and
Kenneth Blanchard define management simply as “working with and through individuals
and groups to accomplish organizational goals” (Hersey and Blanchard 1982, 3).
In all business activities and organizations, including veterinary practices, management
means getting people to work together to accomplish the organization’s goals and objectives
(mission) by using available resources efficiently and effectively. Key to successful
management is the idea of working through and with other people. People are your largest,
most expensive resource and become a valuable asset in a service business like veterinary
practice.
Veterinary hospital managers commonly err by trying to do everything themselves rather
than realizing they can accomplish mission objectives through a teamwork approach with
others. Chapter 3 explores the topic of strategic planning, including how to define the
mission of your veterinary practice and set goals. Effectively working through others may be
one of the more important personal-skill goals you set for yourself as a manager, knowing
that you have to be somewhat knowledgeable about what is being delegated to effectively
oversee methods and outcomes.
Doctors of veterinary medicine are especially prone to the “do-it-yourself” management
style. Rather than relying on other knowledgeable and skilled individuals, they may try to
become “jacks-of-all-trades.” In fact, by insisting on handling the bulk of management
tasks, managing veterinarians may give less attention to the important duty for which they
are best suited—practicing veterinary medicine. As a result, the management tasks may not
be completed as quickly or as adeptly as they would have been if other individuals had been
consulted, and the veterinary work may also suffer.
Clearly, to be a competent manager, you must learn to delegate. Doing everything
yourself is not “managing.” A successful manager knows what needs to be done and, while
not abdicating responsibility for the results, enlists others to accomplish the necessary tasks.
Working with others to obtain the best possible results requires an insightful manager who
is active throughout the management process. This process has four basic steps. These
activities are all equal in importance, and each is present in all managing situations. Ignore
one, and even close attention to the others becomes inconsequential (see Figure 1.1).
14
1. Planning. Determining the goals of the business and developing the strategy and tactics
to accomplish these goals
2. Organizing. Communicating the plan to those who will carry it out and developing the
team framework and resources required to successfully implement the plan
3. Directing. Using personnel management skills to motivate people to accomplish various
steps of the plan through appropriate allocation of resources
4. Evaluating. Measuring and analyzing the success of the management process and
providing the information required to adapt and modify management decisions
We cannot always make a clear distinction between these steps. They are part of an
ongoing workflow process, and so they tend to overlap and do not always occur in a strict
numerical order. Goals and activities will have to be modified throughout the process as
you listen to employees, interact with clients, and observe how operations within the
practice respond to your decisions and direction. A good manager will not be frustrated by
such changes but will face them with flexibility, creativity, and optimism.
Although all four steps are equally important, not all managers are involved equally in all
parts of the management process for every practice goal or activity. You may provide little
input into the planning function on a specific project. For example, if the practice brochure
has to be updated by a particular time, you may be responsible only for the strategic
overview and for organizing and directing the project so that it is accomplished on
schedule. Understanding your role within the practice will help you to clarify your
responsibilities in any particular situation. See “Management Roles” in Chapter 2 for a
discussion on different types of managers. We use one term, “manager,” because hospitals
divide managerial roles up differently, but these definitions will help you to determine the
scope of your position within the practice. In addition to different types of managers,
practices also may have team members who take on certain managerial roles, such as
inventory management.
If you are a manager who is not an owner, understanding your role is especially
important. Practice owners must execute and communicate long- and short-range practice
planning. If they do not, the practice manager may have a very difficult time carrying out
other management functions and processes effectively. Many times, practice owners
identify goals but do not communicate them well. Or they may expect the manager to
achieve goals using only certain resources and a particular method. If the manager simply
tries to guess owner expectations without clarifying them, she will likely fail in her role.
15
THE PLANNING STAGE
Planning in small businesses sometimes is ignored altogether or is confused with procedure
implementation. Practice procedures and systems should be the direct result of planning
and not the result of random attempts at management. Successful businesses are goal
oriented rather than procedure oriented.
Because planning is such an important aspect of your success as a manager, it is covered
in more depth in Chapter 3, as mentioned earlier. You will learn useful planning
techniques and goal-setting strategies. For now, we will explore some basic practice-
planning concepts that are a foundation for all that follows.
First, you must know how to distinguish between goal-oriented and procedure-oriented
work efforts. To understand the difference, consider medical records. Every veterinary
clinic has a set of procedures for how these are prepared, formatted, and stored. In a
procedure-oriented practice, record-handling may be based on little more than how things
happened to evolve. Such methods are unplanned and may depend on individual doctors’
personal preference. Styles of notation and treatment instructions do not further specific
practice goals, and the system may be inefficient, incomplete, or insufficient for the type of
patient care the practice aims to provide. In a goal-oriented practice, records are prepared
and stored according to a well-thought-out plan that is based on practice goals related to
agreed parameters of patient care, fee capture, and client communications. The difference
between procedure- and goal-oriented approaches is compounded when other areas of
practice management are added to the equation (e.g., when not only records management
but also medical protocols, billing procedures, and inventory management are affected by a
particular approach).
Three general types of planning occur in business, depending on the level and duration
of the plan:
1. Strategic planning: Long-range planning (five to ten years into the future). Even though
it is sometimes hard to envision the future in the face of rapid changes taking place all
around us, practice owners and managers must attempt to predict and plan how the
practice will be positioned down the road in relation to other practices and the
marketplace. Strategic planning envisions practice size and location, type and number
of clients, level of veterinary service demand, and philosophy and style of animal-care
delivery.
2. Tactical planning: Planning for the near future (one to three years ahead). Tactical plans
specify the steps, or tactics, required to attain the overall long-range strategy. They
might include facility expansion, employee acquisition and training, identification of
service specialization, budgeting, and the like.
3. Operational planning: Short-range planning (for the days and weeks immediately ahead).
Operational planning evolves from tactical planning. An operational plan identifies
specific steps, indicates who will accomplish them, and ensures that resources are
budgeted to achieve the various tactics. Once the operational plan is designed and
implemented, a manager must monitor the results and adapt the plan as needed to keep
16
Other documents randomly have
different content
Engineering - Research Paper
First 2025 - Research Center
Our website is not just a platform for buying books, but a bridge
connecting readers to the timeless values of culture and wisdom. With
an elegant, user-friendly interface and an intelligent search system,
we are committed to providing a quick and convenient shopping
experience. Additionally, our special promotions and home delivery
services ensure that you save time and fully enjoy the joy of reading.
ebookfinal.com