Why the lab is your goldmine
You can analyze the overall profitability of your practice from two angles, according to Veterinary Economics Hospital Design Conference speaker Gary Glassman, CPA. The first is expenses. But as Glassman points out, typically 75 percent of veterinary clinic operating costs are fixed. This means the best chance of improvement lies in the area of income. Glassman suggests identifying the most lucrative income streams first.
"Your lab or diagnostic area is the most profitable center in your hospital. If you're looking to create that change in profitability, start there," he says.
Glassman points out that products will be the next most profitable center and that these two together constitute an excellent starting point.
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