Like a poorly tuned automobile, veterinary clinics lose revenue because services and items never get billed. There is no change in costs, rather a reduction in revenue and margin.
- 17 percent of lab tests do not get billed (AAHA)
- 5 to 10 percent of all charges are not billed (source unknown)
Missed billings have consequences
- A hospital grossing $2 million could be missing $200,000 in charges annually
- The missed revenue reduces the hospital’s value by $1 million (5 times earning valuation)
Terry O’Neill, CPA, CVA, shares four steps to identify and then recapture the missing revenue.
Source: Today’s Veterinary Business, April/May 2020. Link.
INSIGHTS: This is important work for veterinary teams, as well as independent retailers. It is a team sport, not a single person’s job.
I clicked on the link for Terry’s article but could not find a method to zoom enough to read it comfortably.
once you get the article open … click on the download icon in the upper right corner to download
the issue …. the article reads better there ….