Money Talks

Delivery of veterinary care is largely clinical. Veterinarians can resuscitate a dog or perform surgery on a horse without letting emotions drive decision making. So why isn't it the same when talking with clients about cost estimates?

Dr. Dani Rawin wants veterinarians to feel as comfortable talking about finances with clients as they are about talking about treatment options.

When speaking to clients about the cost of veterinary care, veterinarians and clinic staff should be careful not to make assumptions about client's ability to pay. "We don't have any idea what our clients' values, ideas, beliefs, and pocket books are. We have to routinely present options," Dr. Dani Rawin says.

"We don't always have to match their level emotionally when having these conversations," said Dr. Rawin, founder and CEO of Ready, Vet, Go, a mentorship-focused organization supporting new and early-career veterinarians. "After all, you forfeit the right to practice medicine if you don't bring in funding to practice veterinary medicine."

She and financial consultant Martin Traub-Werner presented "Navigating Veterinary Practice Finances: Bridging the Gap Between Compassion and Capital" on January 9 at the 2025 AVMA Veterinary Leadership Conference in Chicago.

Financial conversations around care

Conversations about finances are prone to becoming emotional because the topic reflects choice, personal resources, individual and cultural values, and one's judgement.

"One of the pieces of judgement that we don't often talk about is the perception that our clients feel that we might be judging against them," Dr. Rawin said.

She talked about a client who brought a young cat that was very ill to her clinic. Dr. Rawin recommended the pet be euthanized and didn't propose other options because she thought this was in the best interest of the pet.

The client said, "If there is anything that you would recommend that you are withholding because you think I can't afford it, I need to know what those things are."

Dr. Rawin apologized. "It was a real misstep. In my mind, I know what I thought the best choice was going to be, but we didn't have that open, deep conversation for me to understand where she was coming from," she said. "And she made an assumption that I was withholding treatment plan recommendations because there's some assumption that I made around finances, which couldn't have been farther from the truth."

Dr. Rawin also recommends not being attached to the outcomes her clients choose. Rather, she empowers them with information. Then she elects to be empathetic but not to the point where she is caught up in the emotions of the conversation. She attributes this detachment to her ability to have 20 "joyful" years in the profession, and something that can help reduce burnout and increase wellbeing.

Getting everyone in alignment

Good patient care and comfort with financial discussions and the fiscal health of the practice are connected, said Traub-Werner, who runs a bookkeeping company for veterinary practices.

He encouraged practice owners to not only be more transparent with clients about the cost of care, but also with staff members about the practice's finances.

Veterinarians are sometimes uncomfortable talking about money. Many also have limited business training. These can both pose challenges for practice finances, says Martin Traub-Werner, a business consultant who serves veterinary practices.

To do this, Traub-Warner recommends starting by explaining that practice finances go into five buckets:

• Cost of goods sold, such as antiparasitics and diagnostics
• Veterinarian labor
• All other labor costs, such as taxes and continuing education
• Operating expenses, such as rent and software
• Profit

This way, when an associate or veterinary technician asks for a raise or a new piece of equipment, they will better understand where the money would come from, he said. Further, there will be better alignment among staff members on how those decisions are made.

And vice versa, associates and other staff members need to show interest in the profitability of a practice, because it's everyone's responsibility for its success.

"It's much more fun working in a profitable business than one that is losing money," Traub-Werner said, because more resources are available.

Informed conversations

Next is making sure every employee is aligned with the clinic's values. That way, when having a conversation about finances with clients-whether it's a veterinarian, veterinary technician, or customer service representative giving the estimates for treatment plans-everyone is on the same page.

Traub-Werner also warned against discounting products and services inconsistently.

He stressed the importance of creating a process for discounting, such as proper coding and bookkeeping. "That way … you can have internal alignment on how you will discount as a practice," he said, such as when to discount and where that money will come from.

Workshop participant Dr. Kay Marinac, a food animal veterinarian who owns her own practice in Southeast Michigan, admitted she gives discounts more than she should. Often, it's tied to guilt about charging for what she thinks she's worth.

"I'll think to myself that a more experienced surgeon could have used less sutures or done it in less time, so I shouldn't charge the client for that 'extra' suture pack or time spent in surgery," she said. "It's stemming from that emotional part."

After attending the session, she says she is motivated to create a financially healthier practice.

"This stuff is important because I can't do my job and help animals if I can't pay for it," Dr. Marinac said.

Public link

Please use the above public link if you want to share this noodl on another website.