Every practicing veterinarian has undoubtedly discounted their services at least once in their career. Many have done it multiple times. Sometimes, the doctor doesn’t value their work highly enough. Other times they worry that clients cannot afford the total, as though owning horses was not a discretionary expense or a luxury. Whether the discount shows up on the invoice or a service or drug is deliberately left off the bill, the veterinarian earns less revenue from the transaction. Lower revenues mean lower compensation for associates and lower profit and practice value for the practice owner. Frequent discounting can compromise the practice’s financial stability and success.
Types of Discounts
Sometimes, a trainer will ask for a discount on services for their personal horses in exchange for providing the practice with business from all their clients. Worse, some farm owners will threaten to change practices if the veterinarian does not give an across-the-board discount on their fees. In competitive horse sports, top riders might offer to display the practice logo in return for free or discounted services. These discounts cheapen the professional value of the service and suggest that paying for the delivery of medical care is like visiting a flea market and haggling for the item you want.
A client with a large overdue balance will sometimes offer to pay in full if the practice gives them a discount on the total owed. It is natural to want to collect monies you are owed, especially because you probably spent real dollars on drugs, supplies, and equipment to provide the service. Getting a payment of any amount helps cover these otherwise sunk costs. However, if you decide to make the transaction, you should permanently remove this horse owner as a client so they don’t have the opportunity to repeat such behavior.
Charitable Discounting
Many veterinarians are most tempted to give a discount when a serious injury or illness happens to a favorite horse or client or one owned, for example, by a 4-H kid with limited financial means. Equine veterinarians love horses and want to help them and their owners. It is mentally taxing to be unable to provide care due to cost, which can contribute to declining mental health and burnout. Some practices budget for each doctor to have a certain amount they can discount each year, either in small aliquots over multiple cases or in one lump for a particular patient. In these charitable cases, the invoice should be clearly marked with standard charges and a compassionate discount noted.
Not uncommonly, practices maintain a fund to which clients can contribute to support care for catastrophic cases owned by financially challenged families. Both those who contribute and those who receive assistance benefit from this generosity. Another helpful option is the Vet Direct Safety Net. The Foundation for the Horse and the AAEP partnered with the ASPCA to offer this program, which is open to U.S.-based AAEP members and clients. The program offers grants to help cover costs for horse owners in need. Veterinarians can use these grants for emergency stabilization procedures or for euthanasia and disposal. Up to $500 of the total invoice per horse is available for reimbursement by the program if approved, but the doctor must be onboarded for the program before using it.
Third-Party Financing
Another strategy to combat discounting is to offer third-party financing. Companies like CareCredit (credit card) or Scratch Pay allow pet owners to spread payments over time, often with interest-free periods if paid within a certain time frame.
Final Thoughts
Discounts come directly from practice profits. While an occasional discount will not bankrupt a practice, frequent discounts generally result in lower team salaries, inability to purchase needed equipment, and low or no practice value.
Related Reading
- Setting Rational Fees for Veterinary Care
- 6 Ways to Improve Equine Practice Profitability
- The Business of Practice: Changing the Equine Practice Business Model
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