Practice ownership...

RE: Practice ownership...

David Hopper — Tue, 29 Aug 2017 16:28:35 GMT

Having been a partner for over 20 years then a practice owner for over 10 years, your question and the replies really made me think about something I hadn't thought through before.

I am a sole practitioner in a small market town and some of my clients are 3rd generation of the same families I have treated over the years and I have a waiting list for new clients.

Being a practice owner gives me immense satisfaction and I am glad I did it. However the 60 hour week and all the responsibilities can get a bit onerous at times. My life balance of work and leisure is completely wrong and sometimes I miss the support of a bigger organisation.

My advice if you are thinking of going on your own is to take the plunge young enough so by the time you want to ease off, there are others to take the work load.

There will always be a place for private practices

RE: Practice ownership...

Stephanie Wellings — Tue, 15 Aug 2017 20:00:21 GMT

[quote user="Wren"]

[quote user="Francisco Gomez"]

It'd be a good pot for retirement or children studies or will or whatever you have in mind if you own your own business and manage it properly, on top of the self-satisfaction of being you who did it. You sell it to the next generation and they'd do the same.

But we live in a different age now.

[/quote]

I get that, I do, but I think, as you say, times are different. The amount of financial effort it took just to buy a small house was phenomenal. I also get that if you buy into a sufficiently profitable business then the financial benefit should completely service the loan repayments, but it's a big scary situation, and I'm not even totally convinced that anyone would lend me the money in the first place. And I like what I do, how I do it and what I get to do. So I stay as I am. Call it lack of ambition, or foresight or poor financial planning, or whatever, but I'm happy. And I suspect I get a lot more hands on vetting time than a lot of practice owners, which, after all, is what it's all about. Isn't it?

[/quote]

This is kind of how I feel about the prospect of practice ownership - for me it's not a case of there being barriers to doing it (I'm sure there would be, but this isn't the primary reason!), I just don't really have the inclination.

I get satisfaction from the cases, and I would look to progress by improving clinical skills. Owning or running a business doesn't hugely appeal - in my eyes that is moving further away from what I trained to do - and I'm glad others (independents or corporates) are happy to do it instead.

RE: Practice ownership...

Bob Russell — Tue, 15 Aug 2017 11:56:54 GMT

This practice is too small for IVC to be interested in. I did approach them more out of curiosity than anything else!

I would happily have someone else join me to bring a breath of fresh air to the practice and share the responsibility (and profit!). I work silly hours and would happily share with the right person.

I would prefer to take less and keep a healthy interest in the wellbeing of the practice than work under a corporate. No problem if the price is right though!

RE: Practice ownership...

patrick murphy — Tue, 15 Aug 2017 11:33:16 GMT

I may be misinformed but I understand that in NA there is a strong movement back to the standalone independent. many of the owners are very happy to provide the financing in a formal draw down process, and use that in their first years of retirement. this allows the interested party to step up, and they should be able to step up, pay the outstanding off, and still make significantly more than employees or the others E mentioned. it is not like the bad old days with out of hours etc., and I still feel, that esp. if I had a family it would be my choice to enjoy not only my life style ( I specialise in time off, travelling and writing stuff like this from my holiday home), or to do rack and stack or lower volume higher fee practice. just my thoughts.

RE: Practice ownership...

Clare Tapsfield-Wright — Tue, 15 Aug 2017 00:13:35 GMT

Freedom , choose the people you want to work with, reap the rewards of your own hard work, clinical freedom, make your own work arrangements such as sabbaticals , flexibility by consensus , sack clients if they are obnoxious without having to justify it, refuse to dock tails ( that was a big one for me before it was banned) , be in control of your own destiny to a great extent and not have to justify yourself to an employer, offer the service you want to offer which selects clients with your values. Not have discount neutering drives on banners on the front of your practice like a discount knicker store .....

RE: Practice ownership...

Francisco Gomez — Mon, 14 Aug 2017 22:30:31 GMT

[quote user="robloxley"]

I do believe that traditional, independent practices will find a demand - be that from clients or staff to work there.

[/quote]

How? What's the attraction? Genuinely interested.

RE: Practice ownership...

Rob Loxley — Mon, 14 Aug 2017 22:19:54 GMT

[quote user="Harriet Nicholson"]the area I am in is very corporate group dominated and there really isnt a need for any more practices[/quote]

I do believe that traditional, independent practices will find a demand - be that from clients or staff to work there.

[quote user="Harriet Nicholson"]you need to have at least some money/collateral/inheritance to put down against a business loan if you wanted to set up an independant?[/quote]

You need a good business plan. If you are buying premises then the loan will be higher, but the property will be collateral. Otherwise you can start up without breaking the bank.

RE: Practice ownership...

Wren — Mon, 14 Aug 2017 15:50:15 GMT

[quote user="Francisco Gomez"]

But we live in a different age now.

[/quote]

RE: Practice ownership...

Francisco Gomez — Mon, 14 Aug 2017 15:30:33 GMT

[quote user="Wren"]

I can't see the benefit of swapping any of this for the stress of buying in and actually becoming the boss. And I have much, much more job satisfaction from being able to mould my role and develop the business than I ever did when I was 'just' a bog standard assistant.

[/quote]

But we live in a different age now.

RE: Practice ownership...

Wren — Mon, 14 Aug 2017 15:26:03 GMT

I'll have to be careful what I say as my boss is on here, and can see through the pseudonym!

However I think that have as good a situation as I could wish to have. I work for the equine branch of a larger mixed practice. There are two of us here and we are at a separate site to the main practice, with our own admin staff. We started the equine side from scratch and have built it up to a nice busy workload. I/we have complete clinical autonomy. I can organise my own appointments, I get to market and promote the equine side of the practice. I have started running clinics with various specialists who can provide services (or essentially equipment) beyond our reach on our client's doorstep, and without referring them elsewhere. I/we basically have our own little practice, with the responsibility of maintaining an acceptable level of profit, but with someone else paying the bills and the wages; and we benefit from the H&S and employee management structure of the main practice. I probably have more responsibility for admin and chasing debts etc. than most assistant vets, along with ordering stock and sorting the various bits and bobs that keep the wheels turning on a daily basis, but I enjoy the responsibility. I can't see the benefit of swapping any of this for the stress of buying in and actually becoming the boss. And I have much, much more job satisfaction from being able to mould my role and develop the business than I ever did when I was 'just' a bog standard assistant.

The more I read and talk to people the more I appreciate that my position is slightly unusual, and I realise that it would not be possible in a lot of practices - maybe the closest in SA practice would be managing a small branch practice? - but it works for me.

RE: Practice ownership...

Evelyn Barbour-Hill — Mon, 14 Aug 2017 15:13:44 GMT

[quote user="Francisco Gomez"]standing up to Goliath.[/quote]

Well, David managed it.

RE: Practice ownership...

Francisco Gomez — Mon, 14 Aug 2017 13:57:02 GMT

[quote user="Harriet Nicholson"]

Cannot move area really due to family commitments, I wonder if this is the other reason people are staying put/not buying in?

[/quote]

Perhaps.

I suspect people don't buy in because practices can be highly profitable businesses when corporates own them. They save in drugs, equipment, courses, etc due to bulk buys and trade agreements. When you're independent not so much. Also they are more likely to survive a strong financial hit.

A practice is worth exactly how much the buyer is prepared to pay for it. In that sense, a corporate is likely to outbid you every time.

But happy to be told I'm wrong since I don't own one.

RE: Practice ownership...

Harriet Nicholson — Mon, 14 Aug 2017 13:30:07 GMT

I'm an employee and although an independant practice is of theoretical interest, I don't want to be a JVP tied in with diffiuclty leaving, and the area I am in is very corporate group dominated and there really isnt a need for any more practices. As far as I udnerstand although buisness loans and mortgages are very different don't you need to have at least some money/collateral/inheritance to put down against a business loan if you wanted to set up an independant?

I suspect for the younger vets (I'm 6 years out now) this is the issue - getting a mortgage is so difficult, noone can secure any loan on a home they dont have/is mortgaged to 95%

Cannot move area really due to family commitments, I wonder if this is the other reason people are staying put/not buying in?

RE: Practice ownership...

Anthony Todd — Sun, 13 Aug 2017 10:40:12 GMT

If I was starting again, and assuming I thought I was good enough via skills and experience, I would approach a senior sole owner and offer to buy him out on a private mortgage so that the seller would get an income stream.

Try to find the above in the middle of the corporates with their staff problems, high charges, rigid policies, and probable lack of continuity and experience.

Vets have considerable personal brand loyalty which the corporates cannot usually supply.

How often have you heard "I go to Mrs X 'cos she knows my dog having vaccinated it 8 years ago...."

Personal satisfaction in being your own boss is hard to equal.

RE: Practice ownership...

Gillian Mostyn — Sun, 13 Aug 2017 09:58:44 GMT

[quote user="Francisco Gomez"]Ownership would be my preference[/quote]

You have now been graduated for 12 years. 'Ownership' is a very abstract thing, but which requires significant investment of time and money to 'make it happen'. Have you got a time scale in mind when you would like to be an owner?

I'm not trying to be difficult..honest! It is just that it is easy to say 'I'd like to own my own practice but, in my own experience, there doesn't seem to be the willingness amongst my peers to sacrifice their freedom, income and time to actually make it happen. Which is fine...everyone is entitled to make their own choices. But there does seem to be a romantic notion of 'independent practice ownership is the best way' ... among people should have made the decision not to do it!!

RE: Practice ownership...

Francisco Gomez — Sun, 13 Aug 2017 00:12:41 GMT

Ownership would be my preference. Unfortunately the market will make that impossible to sustain in the future.

Oligopoly will continue to grow in urban areas giving you two choices as an independent practice: selling to a corporate or standing up to Goliath.

RE: Practice ownership...

Gillian Mostyn — Sat, 12 Aug 2017 23:26:13 GMT

Sorry.. clinical director. Often, but not exclusively, used as the title of the boss in corporate practices, especially by CVS.

RE: Practice ownership...

Nicola Cole — Sat, 12 Aug 2017 22:40:18 GMT

What's a CD?

RE: Practice ownership...

Gillian Mostyn — Sat, 12 Aug 2017 19:03:05 GMT

[quote user="Ashley Rubens"]JVP and CD are effectively the same thing but one gets a better benefits package![/quote]

No..they're really not!!!

A CD is an employee, albeit a senior one. They will have some control over the running of their practice, and seniority over other staff, but they can resign, just like everybody else can.

A JVP is more similar to a franchisee. They will have had to 'buy in' to their practice. They do get a share of the profits (after fees are removed) BUT they have to sell their share to leave the practice.

I think Medivet have another scheme altogether, where the senior vet is more like a partner alongside Medivet...but I might be wrong.

RE: Practice ownership...

Ashley Rubens — Sat, 12 Aug 2017 17:09:52 GMT

JVP and CD are effectively the same thing but one gets a better benefits package!

RE: Practice ownership...

Gillian Mostyn — Sat, 12 Aug 2017 15:26:02 GMT

Very true...I've added an answer so you can vote ...

RE: Practice ownership...

Rob Davis — Sat, 12 Aug 2017 15:03:12 GMT

As a partner in an independent practice I can't vote, but would be curious to see how the votes stack up (I don't think you can see the votes until you've voted)

RE: Practice ownership...

Clive Ansell — Sat, 12 Aug 2017 13:23:04 GMT

No plans to own a practice at the moment, but if I ever do it would be an independent, with my plate and my name over the door. I would therefore vote for 4 and then 3.

Cannot see the attraction of being a JVP at all: glorified employee without any employment rights.