Career Options for Private Veterinary Practitioners

A NEWLY-QUALIFIED veterinary graduate entering private practice often needs to make difficult career choices at a time when he or she has little or no experience of the issues facing private practitioners.

Many issues impact on the quality and financial viability of a private veterinary surgeon’s career path. Ultimately, some graduates may elect not to be in private practice. For those, careers in the pharmaceutical industry, state veterinary services or in academic institutions may be more appealing.

Private practice faces massive and rapid change. These changes arise from:

• new legislation, such as health and safety, employment, environmental, etc;
• new information and veterinary technology;
• a changing market (new Veterinary Surgeons Act and prescribing laws);
• greater competition;
• greater demands for training and CPD; and
• greater financial risk.

Vets are now expected to be legally well-informed, competent in reams of administration and conversant with the latest techniques and procedures in veterinary science.

A difficult choice to have to make, especially at the start of one’s career. However, it is essential to get this choice right as it can, and will, affect the rest of your career. Doing your homework improves the likelihood of avoiding the pitfalls and ensuring a more enjoyable and rewarding career.

And these choices may not be of interest only to new graduates – no doubt many private practitioners (whether employed or self-employed) may presently be contemplating a change in their career.

SALARIED EMPLOYMENT
Pros

• No financial investment risk.
• Far less management accountability and financial pressure.
• More career mobility.
• Straightforward to arrange.

Cons

• Potentially less financial reward.
• No capital gain from developing practice goodwill.
• Potentially less freedom of professional and lifestyle choice.
• Less long-term financial security: ie the potential for redundancy and no opportunity of capital growth.
• Loss of client relationships when changing jobs.
• Less tax-efficient.

SOLE PROPRIETORSHIP
Pros

• Total independence of choice: ie no one else to consider.
• Potentially greater financial reward.
• Capital gain from developing practice goodwill.
• Potentially greater long-term financial security.
• Potentially greater professional satisfaction from long-term client bonding.

Cons

• All decisions and other pressures are yours alone to deal with.
• All financial risk carried by you.
• Potential to become “trapped” in the business with less free time.
• The need to juggle management and clinical responsibilities can be overwhelming.
• A single-handed vet’s skills will be limited, thereby reducing the scope of care that can be undertaken by the practice without referral.
• Potentially insufficient caseload may make investment into advanced technology financially unviable, prohibiting access to such equipment.
• The need to sell the business in order to retire though market conditions may not be favourable at the time.

INVOLVEMENT IN A FRANCHISED VETERINARY PRACTICE
Pros

• Straightforward to arrange and finance.
• Management systems and expertise provided by franchisor.
• More free time.
• Potentially greater financial reward.
• Capital gain from developing practice goodwill.
• Potentially greater long-term financial security.
• Potentially greater satisfaction from long-term client bonding.
• More competitively priced supplies leading to potentially greater profits.
• Potentially better marketing.

Cons

• Although most franchises advertise that you will receive 100 per cent of the profits, it should be borne in mind that this is only after all of the costs have been deducted: ie you are also responsible for 100 per cent of the costs.
• You carry 100 per cent of the costs of investment and financial risk and may be compelled to invest large amounts.
• Turnover-based management, advertising and marketing charges usually apply.
• Choice is limited by franchise organisation policy and decisions.
• Generally franchised to one or two vets, reducing the scope of care that can be undertaken by the practice without referral.
• Potentially insufficient caseload may make investment into advanced technology financially unviable, prohibiting access to such equipment.
• The need to sell the business in order to retire as you will need to sell your share to a person who wishes to be a franchisee.
• Expansion or changes not possible without franchisor’s consent.
• Potential for franchisor to sell or float franchise organisation, leaving you to deal with a new owner.
• Often owned and operated by people who are not veterinary surgeons.

JOINING A SMALL PARTNERSHIP
Pros

• Shared responsibility and financial risk through larger pool of capital available.
• Better work/life balance.
• Potentially greater financial reward.
• Capital gain from developing practice goodwill.
• Potentially greater long-term financial security.
• Potentially greater professional satisfaction from long-term client bonding.
• Larger pool of skills allowing practice to undertake a wider scope of care without referral.
• Generally no need to sell the business to retire as partners will usually buy your share.

Cons

• Management skills are usually limited and management and admin can still be overwhelming.
• Potential for conflict between partners over income, responsibilities and business development.
• Choice limited by consensus of partners.
• Joint and several liability (can be limited in a limited liability partnership).
• Caseload may still be insufficient to make investment into advanced technology more than financially marginal and may restrict access to advanced technologies.

JOINING A LARGE PARTNERSHIP
Pros

• Shared responsibility and financial risk means much larger pool of capital available.
• Entry into the partnership generally straightforward and easily financed.
• Loss of a partner generally does not threaten the viability of the practice.
• Better work/life balance.
• Potentially greater financial reward.
• Capital gain from developing practice goodwill.
• Potentially greater long-term financial security.
• Potentially greater professional satisfaction from long-term client bonding.
• Much larger pool of clinical skills allowing practice to undertake a far wider scope of care without referral, enhancing fee income.
• No need to sell business to retire as partners will almost always buy your share.
• Specialisation into clinical and management roles encouraged resulting in enhanced expertise in each sphere.
• Potentially better marketing.
• Sharing of facilities and large caseloads resulting in significant economies of scale and the ability to economically own and operate a wide range of advanced technologies.
• Bulk purchasing resulting in substantial discounts on supplies and services meaning potentially greater profits.
• Management mostly undertaken by veterinarians.
• Larger business can support a fully-developed management team with more functions handled in-house.
• Large partnership usually results in a positive team spirit that improves conflict resolution and the achieving of consensus.
• Excellent client experience from a broad and well-integrated service may give the practice an edge in the market.

Cons

• Potential for conflict between partners over income, responsibilities and business development.
• Partner needs to adopt a team mentality and develop relationship skills.
• Choice limited by consensus of partners.
• Joint and several liability (though this issue can be addressed by a limited liability partnership).

CONCLUSION
Clearly, no single choice will suit every practitioner. However, it is important to ensure that whatever career choice is made, you are able to achieve your professional objectives and build on strengths rather than weaknesses.

Failure to do so will often lead to stress and disillusionment. This has resulted in some practitioners retiring early from private practice and taking up other career options. Sadly, suicide is also a significant issue affecting some private veterinary surgeons today.

Fortunately, the development of very large partnerships and franchises has added more career
choices than was previously the case, giving most practitioners contemplating private practice a better selection of career paths.