Vet Income for new grad in private practice$$$

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VEGETAbale

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So I always hear these stories about people taking their pets to the vet and being charged 6000 to have a hair ball removed, or a couple hundred for skin treatment etc. Im wondering, if this is true, why vets have such low salary's? Is it because vets don't typically go in to private practice? It seems like if you set up a boutique clinic fixing soccer mom's poodles, you could easily profit 300k+ what am I missing here?

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Because those prices don't directly go into the vet's pocket. That has to cover the rent or mortgage on the building, the receptionist and vet techs salaries, the water/heat/electric/internet/garbage bills, purchasing supplies and vaccines and drugs, office supplies, large equipment like x-ray machines and microscopes and bloodwork, etc and so on. There are a lot of costs of running a business that has to be covered by the services being provided.
 
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So I always hear these stories about people taking their pets to the vet and being charged 6000 to have a hair ball removed, or a couple hundred for skin treatment etc. Im wondering, if this is true, why vets have such low salary's? Is it because vets don't typically go in to private practice? It seems like if you set up a boutique clinic fixing soccer mom's poodles, you could easily profit 300k+ what am I missing here?

Most vets go into private practice as general practitioners.

You're assuming the majority of people give enough of a **** about their animal's health to pay those prices. We have to "sell" our medicine every day. We have people refusing to pay $40 for bloodwork, $50 for medication, or $70 for radiographs, or $100 for a spay. Every damn day. They call us greedy, uncaring, selfish. Every damn day. Let alone the hundreds of animals we then have to euthanize for fixable conditions because owners refuse to pay for surgery or care (yet have $600 iPhones) or simply can't pay. Insurance (in the human medicine world) has given people a very skewed view of what medical care truly costs, and they have no idea that we are giving them such a massive discount already. They just see the number.

Our clinics have to pay for the same instruments, diagnostics, etc that human hospitals do. But we can't charge their prices. No one would pay it. Healthcare providers have insurance backing them up to cover their salary, the expensive machines, etc. We don't have Aetna or Blue Cross reimbursing us while the patient only pays a copay, to help us cover our overhead cost, salaries, etc.

Given our prices, we simply can't pull in that much money. However, if we up our prices, people simply won't pay and will simply forgo care - because their pet is a luxury. It isn't Grandma. It's disposable. That is the mentality of a large number of people.

Plus all the other things that kcoughli mentioned. And the average 150-200k debt on top of that.
 
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So I always hear these stories about people taking their pets to the vet and being charged 6000 to have a hair ball removed, or a couple hundred for skin treatment etc. Im wondering, if this is true, why vets have such low salary's? Is it because vets don't typically go in to private practice? It seems like if you set up a boutique clinic fixing soccer mom's poodles, you could easily profit 300k+ what am I missing here?

Unless you’re in San Francisco, it’s not going to be $6000 to remove a hairball surgically unless the pet was super sick and had major complications. Maybe $1500-3000 in many metropolitan areas depending on where you have it done and whether or not hospitalization is opted. But in general practice, I might personally do a foreign body surgery like this at the low end of the costs listed once every 2-3 months (and I do more than most people). I know gps who have never done them, or maybe once a year to two. It’s not like I have these big ticket item surgeries on my books every day.

And yes, a couple hundred for skin treatments, when you consider these animals come in itchy, with a skin infection, and typically an ear infection and also not on adequate preventatives. They may need a $60-70 exam fee, a $30-50 ear/skin cytology, $15-25 medicated ear cleaner, $20-80 antibiotics depending on the hospital/drug, $20-40 ear medication, and $40-100 in anti-itch medication depending on size of animal, and on top of that, flea/tick prevention which is typically $10-25 per month regardless of where you buy it. Yeah it’s expensive, but that’s just how it is. These prices reflect best medicine and assumes the owner cares enough to and have the ability to pay.

But do I get to pocket all of that? Oh hell no. The veterinarian typically gets paid about 20% of what they produce. So to produce a $100k salary, you have to generate $500k revenue a year, or $10,000 per week, or $250 per hour for a 40 hr work week. That’s totally doable if you work in a well to do community at a busy practice. But to earn $300k, you would need to generate $750 per hour every hour for 40hrs every week. In an 8 hr surgery day, I’m not doing enough to earn $6000 revenue. And not every appt on an appt day earns you $350-400. Yes a sick pet appt may generate $300-1000. But when you consider that you also have multiple 20-30 min cat wellness appts and puppy/kitten appts that brings in $100-150 per appt; as well as 20-30 min rechecks that bring in $50-70; as well as “just exam” with little to no diagnostics/treatments needed that bring in $60-100..., and the “nope just the rabies ma’am” type appts, you can see how that just doesn’t happen. Also remember that not every appt slot for every doctor is filled every day. Add to that all the economically depressed communities across the country where owners can barely make ends meet and feed/clothe themselves and their kids. Not all pet owners can or will spend money on their pets.

Boutique clinics and home vets that provide concierge service can charge more and net more of what the charge, but they don’t see as many appts in a day. The clinic owner will net a higher percentage of what is produced in the hospital, both from their own services and a portion of their Associates’ services, but the owner has to also invest a lot of initial cash and pay back a ton of loans on their clinics prior to seeing a profit. A lucrative specialist service like surgery can provide a higher salary, as many of their consults also require sedated radiographs and many of their procedures cost $2500-5000 each. However, those people need to train 4-6 years additional compared to GPs (and not earning much at all during those years while their student loans explode). It’s really not as easy as you think.
 
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And sad to say too many of our "leaders" and "teachers" in veterinary schools have no idea or real world experience in daily private practices to understand what really goes on and help change veterinary schools for the better and prepare students to survive and be successful.
 
It seems like if you set up a boutique clinic fixing soccer mom's poodles, you could easily profit 300k+ what am I missing here?
You're missing the clinic fixed costs (rent, insurance, taxes, fees, utilities, salaries, equipment depreciation), and the clinic variable costs (wages, supplies, drugs).

A vet doesn't pocket the money that's billed......most of it goes to pay the clinic costs. A vet pockets maybe 20 - 22% of the income they bring in.
 
And sad to say too many of our "leaders" and "teachers" in veterinary schools have no idea or real world experience in daily private practices to understand what really goes on and help change veterinary schools for the better and prepare students to survive and be successful.
not really sure what this has to do with the supposed mismatch the OP noticed.

I think that's all explained by overhead and material costs.
 
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Unless you’re in San Francisco, it’s not going to be $6000 to remove a hairball surgically unless the pet was super sick and had major complications. Maybe $1500-3000 in many metropolitan areas depending on where you have it done and whether or not hospitalization is opted. But in general practice, I might personally do a foreign body surgery like this at the low end of the costs listed once every 2-3 months (and I do more than most people). I know gps who have never done them, or maybe once a year to two. It’s not like I have these big ticket item surgeries on my books every day.

And yes, a couple hundred for skin treatments, when you consider these animals come in itchy, with a skin infection, and typically an ear infection and also not on adequate preventatives. They may need a $60-70 exam fee, a $30-50 ear/skin cytology, $15-25 medicated ear cleaner, $20-80 antibiotics depending on the hospital/drug, $20-40 ear medication, and $40-100 in anti-itch medication depending on size of animal, and on top of that, flea/tick prevention which is typically $10-25 per month regardless of where you buy it. Yeah it’s expensive, but that’s just how it is. These prices reflect best medicine and assumes the owner cares enough to and have the ability to pay.

But do I get to pocket all of that? Oh hell no. The veterinarian typically gets paid about 20% of what they produce. So to produce a $100k salary, you have to generate $500k revenue a year, or $10,000 per week, or $250 per hour for a 40 hr work week. That’s totally doable if you work in a well to do community at a busy practice. But to earn $300k, you would need to generate $750 per hour every hour for 40hrs every week. In an 8 hr surgery day, I’m not doing enough to earn $6000 revenue. And not every appt on an appt day earns you $350-400. Yes a sick pet appt may generate $300-1000. But when you consider that you also have multiple 20-30 min cat wellness appts and puppy/kitten appts that brings in $100-150 per appt; as well as 20-30 min rechecks that bring in $50-70; as well as “just exam” with little to no diagnostics/treatments needed that bring in $60-100..., and the “nope just the rabies ma’am” type appts, you can see how that just doesn’t happen. Also remember that not every appt slot for every doctor is filled every day. Add to that all the economically depressed communities across the country where owners can barely make ends meet and feed/clothe themselves and their kids. Not all pet owners can or will spend money on their pets.

Boutique clinics and home vets that provide concierge service can charge more and net more of what the charge, but they don’t see as many appts in a day. The clinic owner will net a higher percentage of what is produced in the hospital, both from their own services and a portion of their Associates’ services, but the owner has to also invest a lot of initial cash and pay back a ton of loans on their clinics prior to seeing a profit. A lucrative specialist service like surgery can provide a higher salary, as many of their consults also require sedated radiographs and many of their procedures cost $2500-5000 each. However, those people need to train 4-6 years additional compared to GPs (and not earning much at all during those years while their student loans explode). It’s really not as easy as you think.

Sounds overwhelming. Just like the third world problems we have here.
 
Sounds overwhelming. Just like the third world problems we have here.

Not overwhelming. Just a dry explanation of the way things work, and accounting of where the money comes from. And literally 100% of what I do professionally is a first world problem. Right or wrong, each one of my personal pets have more resources allocated to them than many children in the third world (or maybe even in the first world). Like literally, one of my cats eats $6 in cat food per day and they all get anything and everything they could ever possibly want/need. And my job is to cater to these luxuries. This is even true at the low income clinic I volunteer at. Never said that I entered this profession for altruistic reasons. Private small animal practice is like the epitome of capitalism.
 
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Not overwhelming. Just a dry explanation of the way things work, and accounting of where the money comes from. And literally 100% of what I do professionally is a first world problem. Right or wrong, each one of my personal pets have more resources allocated to them than many children in the third world (or maybe even in the first world). Like literally, one of my cats eats $6 in cat food per day and they all get anything and everything they could ever possibly want/need. And my job is to cater to these luxuries. This is even true at the low income clinic I volunteer at. Never said that I entered this profession for altruistic reasons. Private small animal practice is like the epitome of capitalism.

Indeed. Private practice here is almost non existent because animal owners can't afford it (except a few in big towns). So we do other things (like small scale primary agriculture and livestock trading) to survive since our government stopped employing us to provide free veterinary service. Some of us are trying to get licensed and get there for work - against the odds!
 
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