Why Women Veterinarians Should Own Practices

Last year was interesting in the veterinary profession.  A single family now owns a sizable percentage of the veterinary market (MARS – VCA, Banfield, Pet Partners, BluePearl).  The transaction to purchase VCA was so large that the Federal Trade Commission reviewed the deal and only allowed it after a forced sale of 12 practices in cities where they deemed a monopoly would otherwise exist (http://news.vin.com/VINNews.aspx?articleId=46420&callshare=1).  Throughout the industry, private equity and financial players are quickly purchasing practices.  This consolidation is occurring as new veterinary graduates are finishing school with high debt loads and finding job prospects with tightening production contracts and non-competes.

I entered veterinary medicine as an idealist.  I’ve wanted to be part of the profession since I was seven.  After working for an early corporate practice in the late 1990s, I learned that despite my youth and inexperience, I could do it better.  I started a practice with a partner and we grew it to two locations and 150 employees.  After 10 years, despite a strong profitable business, we thought we could do more with additional partners and merged with a larger veterinary owned group.  Four years later, the landscape is dramatically different, and I am once again looking for a path for an idealist.

As a woman, wife, mom, veterinarian and a business professional, I hope this blog will start a candid conversation about the challenges our profession faces and innovative ideas for the future. My hope is to use my experiences to offer ideas and thoughts around existing opportunities and potential new blue oceans.

Today, I want to address and refute some of the myths that lead people, especially women, to not consider ownership. Women now make up 56.6% of veterinarians in private practice (market research statistics 2016 – https://www.avma.org/KB/Resources/Statistics/Pages/Market-research-statistics-US-veterinarians.aspx) and thus to keep practices in the hands of veterinarians, more women must be convinced they can and should own their own practices.

Here are 5 myths I regularly hear from women.

Myth #1: I can’t be a good parent and own a business.  There will be too many demands on my time.

My business partner and I opened our 24/7 veterinary emergency hospital when my daughter was 10 months old.  Was is tiring and exhausting?  Absolutely.  However, as one of the bosses, I could design my own schedule.  I was able to bring my daughter with me on clinic purchasing trips (lots of trips to Costco the first couple months of being open).  I could help design a meeting schedule that made the most sense for all the parents, allowing call ins for some meetings to increase time at home for all of us.  Although I worked full time, I was able to work longer days and shorter days which allowed for me to go on almost every single field trip during my daughter’s elementary school years.   Because other veterinarians on staff also had kids, we prioritized together so that everyone could make the events that were most important to them.  Being an involved parent and a boss meant not only was I there for my kids at important times, but I also helped other parents be there for their kids.

One other related myth that no one tells you is that babies don’t miss you as much as your tweens so buy early and get the busy sleepless nights done all at once.   Toddler naptime can be a great time to look at financials or review an equipment contract.   Think of your business as one more child in the mix!

Myth #2: I’ll do fine financially if I just work for someone else.

In the initial stages of your career, stability and benefits are important.  However, current veterinary salaries alone will not pay down your debt effectively over the long haul.  On the other hand, profits from well managed veterinary practices can range from 10-30%.  While some of those profits go for taxes and capital purchases, if you own the practice, this profit is additional income available for debt reduction.  Yes, you will have some duties other than just working as a veterinarian.  But you will also have some say in pay structures and benefits long term.  Many veterinarians at retirement age now hope to sell their practices to their colleagues.  Taking the leap and stepping up will be the best way to both keep practices veterinary owned and assure success for yourself and for your family long term.

Myth #3: I don’t know enough about business to own a business. 

I believe basic business courses should be part of the offerings in veterinary school.  However, there are a TON of resources out there to help you.  Many banks offer free small business seminars for their clients.  Community colleges have inexpensive classes.  Proceedings articles, VIN, and other parts of the internet provide a wealth of knowledge (https://www.sba.gov/business-guide).   Veterinary Management groups (VMG) – (http://www.veterinarystudygroups.com/) is a great resource in helping share best practices. If you can buy into a practice with a present owner, you have built in mentorship to start you on your journey.  Networking with your local colleagues is also a great way to discuss and learn from challenges we all face.

Myth #4: It is too much stress to own a practice.  I don’t want to talk to angry clients.

Sometimes the reason there are angry clients has to do with structures and flow within practices, many of which the folks working on the floor know how to fix if they were asked.  Sometimes there are quality issues you can see but you don’t have control over.  Local ownership allows for faster fixes to problems and often less client issues.  In addition, if you hire a good practice manager or have partners, you are not in this alone.

The flip side is the amazing gratitude from your community that you will find everywhere if you run a good business.

Myth #5:  I have so much debt there is no way I’ll qualify for more.

Interestingly, banks do realize that veterinary practices are a good investment.  They are refinancing and consolidating student loans to facilitate practice ownership.  See (https://www.avma.org/News/JAVMANews/Pages/171115e.aspx, Roberts, LC. “How to Heal Veterinary Student Debt” https://issuu.com/cornellvetmed/docs/scope_spring_2017_lores, pp 14-21), and   https://www.youtube.com/watch?v=vH6rk4JfMmQ&feature=youtu.be. It is important to look carefully at the terms and fine print but the option is not off the table.

We are at a cross roads in the veterinary profession.  We can continue to put our head in the sand, proceed as we are, and watch increasing non-veterinary ownership of our profession.  The alternate future is looking for new ownership models, creating truly sustainable ways to pass on practices locally while simultaneously rethinking appropriate costs and compensation for a veterinary degree.  On an individual level we need to refocus on those things that in the past have made veterinarians one of the most admired professions – local ownership, community involvement, and a face to face commitment to our staff, patients, and families.  Veterinarians know best what veterinary professionals, patients and clients really need and thus we need to own and control our destiny.  Women must lean in and be part of veterinary ownership of the future.