Chapter 11: Financial Management

Poll

What would be a fixed cost?

• Building Rent/Mortgage

• Retail

• Medical Supplies

Poll

What would be a variable cost?

• Biomedical Waste Pick Up

• Medical Insurance

• Staff Payroll

Fee Schedule

Scenario: Canine Spay Procedure

Given Costs and Time:

• Fixed costs/minute: $2.50

• Staff costs/minute: $1.75

• DVM costs/minute: $4.00

• Length of procedure in staff minutes: 45 minutes

• Length of procedure in DVM minutes: 30 minutes

• Direct costs (e.g., anesthesia, sutures, medications, supplies): $50

• Profit goal: $75

​Step-by-Step Calculation

(Fixed costs + Staff costs) × (Staff minutes)
( 2.50 + 1.75 ) × 45 = 191.25

(DVM costs) × (DVM minutes)
4.00 × 30 = 120.00

(Direct costs × 2)
50 × 2 = 100.00

Adding profit
191.25 + 120.00 + 100.00 + 75 = 486.25

Final Fee for Canine Spay

✅ $486.25

Word Cloud

What type of "goals" are placed on vet staff to create profit?

Poll

Does your practice allow checks as payment?

• Yes

• No

Poll

Does your pet have insurance?

• Yes

• No