Production - how does it work?

[VetMedVetMed]

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Hello everyone!

I just started a new job as a new grad veterinarian, and I just started taking my own patients by myself two weeks ago. So I wanted to get an idea of how production works (and an explanation). I am pro-sal. My base salary is $140,000, and my production is 20%. My work is starting me out with fewer patients to start. They say they will schedule about 10 after 15 patients per day because they cannot want to overload us even if we are there a few years. It is a GP practice. I calculated all of my invoices for the last two weeks.

Week 1:
- I worked 4 days. Monday, Tuesday, Wednesday, and Friday.
- Total amount from the invoices I did from Monday was $2,415.03 (saw 5 patients)
- Total amount from the invoices I did from Tuesday was $1,384.50 (saw 4 patients)
- Total amount from the invoices I did from Wednesday was $881.85 (saw 3.5 patients)
- Total amount from the invoices I did from Friday was $1,865.49 (saw 5.5 patients)

Week 2:
- I worked 3 days (closed 4th of July holiday, and Saturday is only half day). Monday, Wednesday, and Saturday
- Total amount from the invoices I did from Monday was $2,091.93 (saw 6 patients)
- Total amount from the invoices I did from Wednesday was $2,094.95 (saw 6.5 patients)
- Total amount from the invoices I did from Saturday was $784.65 (saw 5 patients)

So starting out for my first 2 weeks, is this good?

How much do I need to be making per month and her year to meet my base salary? Anything on top of that I will be making action, so I just want to see where I’m at so far based off of this alone. Thanks!

 

[JaynaAli]

If your base salary is 140k at 20% production, that means your clinic expects you to produce at least 700,000/yr to cover your base salary (140k is 20% of 700k), and if you produce more than that, you get paid out extra as your production bonus. To figure out if you’re on track, Divide 700k by 12 months and you need to produce a little less than 60k/mo or about 14-15k/wk. If you’re working an average of 4 days a week, that is roughly 3500/day. Your first week total was very roughly 6500, second week about 5000, so you’ve got a ways to go before you hit 14k. However, it’s somewhat expected that you’ll be under for a while as you get the hang of things, build speed, and build your clientele. How long the clinic is okay eating a deficit as you adjust will vary. Details like frequency of production bonuses, if you have negative accrual, how they handle PTO, and if certain things are excluded from production will all factor in to your actual numbers though, this is just a really basic overview.

It looks like your average billing per patient is like $350ish (though Saturday was a big outlier and pulls that down), so theoretically if you get more efficient and see at least 10-12 patients a day four days a week at those rates you would hit 14k on a four day workweek if you maintain similar transactions. But if more days are like Saturday it’ll be tougher to hit numbers because you’re bringing in less per patient so you’d have to see more patients or bring in more money per transaction.

 

[Minnerbelle]

How many days of PTO (sick, vacay, CE, holidays) do you get a year? Is there a provision for the company crediting you production for those days not worked? Or is it the standard “you get paid your base salary so technically it is paid time off” bull****?

How many days a week do you work?

What is excluded from your production calculation? Is everything in the revenue posted paid out at 20%? Or is some of it paid out at a lower percentage or not at all (e.g. preventatives, rx diets, cremation)? And if so how much of it and at what percentage? For example, if you had a $600 euthanasia visit but $400 was cremation and you aren’t entitled to any production on cremation, your daily revenue total is really $400 less than you are currently reporting likely.

How often do you get paid production bonuses? Monthly? Quarterly? Yearly? And is there any negative accrual between production periods?

Do you get paid for any non-appointment/surgery activities (tele-consults, approving rx refills, passive income through preventative refills/online pharmacy for chronic refills)?

Will you have surgery/procedure days, and are those likely to be more or less lucrative than your appointment days?

Those are all things that will affect your production, but all that being said, if you wanted to simplify things:

Assuming 5 weeks off total between all PTO where you earn 0 revenue towards production, and you have a 4 day work-week all appts, you would need to average $250/visit of all services you are eligible to get paid 20% production on if you are seeing and average of 15 patients per day. Similarly, you would need to average $370/visit seeing an average of 10 patients per day. This is to cover your base of $140k. You would need to earn more than that to earn production.