CVPM Key Formulas, Benchmarks, Statistics, Acronyms, Laws, and Concept Flashcards
1
Q
Four steps to evaluating the profitability of a service.
A
Gather the following information:
1. Gross revenue per month of specific service
2. Square footage used by service
3. Fixed costs for the entire practice
4. Fixed costs per square foot for services
2
Q
Net Income Formula
A
Gross Revenue-(fixed costs+variable costs)=net income
3
Q
Accounting Formula
A
Assets=Liabilities + Owner Equity
4
Q
Equity Formula
A
Assets-Liabilities
5
Q
Return on Capital Percentage Formula
A
Income/Average Total Assets
6
Q
Net Profit Margin Formula
A
Practice Profit/Practice Revenue
7
Q
Gross Profit Margin Formula
A
Gross Profit/Practice Revenue
8
Q
Average Transaction Formula
A
Practice Revenue/Practice Transactions
9
Q
Revenue per full time DVM
A
Practice Revenue/# of FTE Veterinarians
10
Q
Accounts Receivable Turnover
A
Credit Sales/Average AR
11
Q
Average AR
A
(Beginning AR+Ending AR)/2
12
Q
Days in AR
A
Number of days in a period/AR Turnover
13
Q
Profit Formula
A
Revenue-expenses
14
Q
Cost of a Service Formula
A
fixed cost per minute+(staff costs per minute X length of procedure in staff minutes)+(DVM costs per minute X length of procedure in DVM minutes)+(direct costs X2)+desired profit
15
Q
Cost per client
A
(gross revenue/# of clients)X%of cost (ie % of expenses)
16
Q
Revenue per FTW Vet (DVM Specific)
A
Average Transaction fee (specific vet) x # of invoices per year
17
Q
Re-order Quantity Formula
A
Average daily use X turnover goal (in days) Average inventory on hand=(beginning inventory $ + ending inventory $)/2
18
Q
Inventory Turnover Ratio
A
Total drug and medical supply purchases over specified time frame/average inventory on hand for that specified time.
19
Q
Average Shelf Life of Inventory in Days
A
365/Inventory Turnover Ratio
20
Q
Margin Sales Price
A
Fixed Costs+Variable Costs (DVM Production % + % of labor costs)+ Profit %
21
Q
Breakeven Point
A
of times service needs to occur to breakeven=(price of equipment including support and maintenance/(client invoiced cost-clinic cost for service)
22
Q
Veterinarian/Staff Ratio
A
2 staff per vet
23
Q
Breakeven % for clinic
A
%40
24
Q
What % of revenue should training investment be?
A
%1-2
25
What is the 70/20/10 model of training?
%70 on the job training, %20 Coaching, %10 formal courses and lectures
26
Bonding Rate of Clients
%70 for tenured vets %25 for new vets
27
What is the longest a staff meeting should be?
No longer than 45 minutes long
28
IRS taxable Fringe Benefits (Pet discounts)
any pet discounts exceeding %20 must be taxed as employee wages
29
What is the time frame management should provide employee copy of their employment records?
2-5 business days
30
File Retention Times
1 year: Personnel file records, per VII (recruitment records)
3 years: employee info such as i-9, hiring records, test results, employment actions, anything pertaining to FMLA
4 years: Tax records, payroll records such as SSN, payrate, pension payments, etc.
5 years-work-related illness and injury
30 years-Medical exam findings, dosimetry reports, toxic exposure records, blood borne pathogen records
31
How much money should employee account balances not exceed?
$100
32
What % of revenue does embezzlement account for in a practice? What % of practices are victims of embezzlement?
%5 of revenue, %67.8 of practices
33
How much of revenue should be spent on advertising retail products?
%1-3 of revenue
34
To push the envelope for profitability what % of pricing resistance should be?
%15-20
35
What % of shopper calls are directly concerned about price?
%13
36
What % of shopper calls are directly concerned with looking for the best veterinarian care for their pets?
%87
37
New:Lost clients monthly consist of records sent elsewhere and deceased pets
6:1 significant growth
5:1-4:1 needs investigation for the reason for the lost clients or slow growth of new clients
3:1-1:1-indicates poor growth and needs to be aggressively researched and improvement made
38
What number of rings should phone calls be answered by?
3rd ring
39
How soon does a client determine the likeability of a practice?
Within the first 90 seconds
40
When should follow up calls happen after a patient appointment?
Within 48 hours
41
What % of of clients should a practice retain over a 3 year period? What is the average loss of clients per year?
%70-75 retention, %10-15
42
What % of information does a client retain if they are told?
%20
43
What % of information does a client retain when they read?
%30
44
How many times does a client have to hear about something before purchasing it?
5 times
45
What is the typical inventory holding cost range?
%8-%15 of true total cost
46
Combined ordering and holding costs
%25-%35 of total true total cost
47
What profitability % should a practice be according to the reading?
%12
48
What is Pareto's 80/20 rule?
%20 of items account for %80 of revenue and %80 of the costs exists
49
How long should it take to implement new software or going from paper to digital records?
6-12 months
50
How many known zoonotic diseases exist?
1400
51
What 5 key factors to evaluate hiring?
1. Veterinarian/Staff Ratio
2. Veterinary Production
3. Team members' production
4. Hospital Flow
5. Staff payroll %
52
4 C's of successful onboarding
1. Compliance
2. Clarification
3. Culture
4. Connection
53
EASE to Facilitate Onboarding
Encourage
Align
Solve
End Distractions
54
3 Most Common Reasons Staff Leave
1. Lack of positive feedback
2. Lack of Training Opportunities
3. Failure of management to include them in strategic vision of hospital
55
9 Ways to Enhance Employee Development and Productivity
1. Shared Purpose
2. Tools to do the job
3. Standard Operating Procedures (SOP)
4. Performance Standards
5. Engage & Empower
6. Recognize & Reward
7. Physical Fitness
8. Personal Focus
9. Team Focus
56
2 Keys to a Successful Veterinary Practice
1. Delegation
2. Empowerment
57
SMART Management of Daily Work Assignments
Specific
Measurable
Agreed
Realistic
Time Bound
58
3 Common Types of Employee Reviews
360 Review
Self-Review
Employee satisfaction survey
59
4 Disciplines Necessary for Effective Performance Reviews
1. Hold employees accountable
2. Teach employees to identify, deploy, and develop strengths
3. Action plans to address performance problems
4. Formal reviews that document the big picture
60
Rule of 3 for Corrective Action Discussions
1. If the situation is enough to catch you attention, take note
2. The 2nd occurence, take note to determine if start seeing a pattern
3. 3rd occurrence warrants a conversation
61
ABCDEF Formula for corrective action discussion
Awareness
Behavioral Expectations
Consequences
Decision confirmed
Employee involvement
Follow Up
62
Top 3 issues that cause conflict at work
1. Gossip
2. Lack of training
3. Lack of communication
63
4 Step Method for Successful Conflict Intervention
1. Confront the behavior
2. Talk it out
3. Hold team members accountable for solutions
4. Follow up and feedback
64
3 Steps of Disciplinary Procedure
1. Verbal Warning
2. Written Warning
3. Final Warning
Termination
65
8 Exceptions to At-Will Employment
1. Collective bargaining agreement
2. Contracts with specific length of employment
3. Dismissal based on race, sex, color, religion, national origin (Title VII )
4. Dismissal based on pregnancy
5. Dismissal based on age if over 40
6. Dismissal based on refusual to do work in unsafe
7. Dismissal based on personal bankruptcy
8. Dismissal because of jury duty
66
Types of Health Care Coverage
1. Fee for Service
2. Managed Care (includes HMO, PPO, POS)
3. Section 125 plans (utilize HSA, FSA)
67
3 Types of Retirement Plans(Regulated by ERISA)
1. SIMPLE IRA (Short Incentive Match Plan for Employees).
2. 401K
3. SEP (simple Employee Pension
68
Documents to include in Personnel Files
1. Employment Application, resume, interview notes, background checks
2. Job Description
3. Offer of employment letter
4. Performance Evaluations, Education, training
5. Disciplinary documents
6. Federal and state mandated forms (except i-9's)
7. Copy of degrees, diplomas, certification
8. Employee action forms (wage & position changes)
9. Leave of absence and attendance records (except FMLA)
10. Employee record showing date of hire, compensation rate, history of raises, promotions, demotions, emergency contact information
69
Store the Following employees records separately
1. Employees' names, address , social security number
2. Birth date if minor
3. Work Schedules, pay rates wage deductions
4. Benefit records
5. Timeclock records for each pay period
6. I-9s (separate drawer from everything else)
7. Medical Records
8. Any document that cannot be used in the decision for hiring, firing, promotion or demotion
70
Content of Job Description
1. Position Title
2. Summary of Job including goals/objectives
3. List of duties and responsibilities
71
3 Purposes of Manuals
1. Reference tool for standards of care and practice guidelines
2. Training and instruction
3. Define standard to which employees
72
3 Primary Functions of Patient and Procedure Logs
1. Allow convenient storage of important information
2. Improve quality of patient care and client service
3. Facilitate charge capture and auditing processes
73
3 Types of patient and procedure logs
1. Hybrid Logs (combination of patient & procedure logs.
2. Patient logs-any record patients that patients received a specific service.
74
6 Drug Categories
1. Adulterated Drugs
2. Misbranded Drugs
3. Prescription/legend drugs
4. OTC
5. Extra-label
6. Generic
75
Components of a Rx Label
1. The statement "caution: federal law restricts this drug to any use by or on the order of a veterinary"
2. Recommended route of administration
3. Quantity/proportion of each active ingredient
4. Names of all inactive ingredients of drug is not oral
5. Identify lot number/manufacturere
76
4 Conditions for Compounding Medications
1. Vet believed there is a legitimate need to alter the approved drug to adequately medicate patient.
2. Current VCPR
3. Patient has a medical condition that requires prescribed medication
4. Vet determines that a compounded drug is needed
77
FDA Overees
1. Pet Food
2. Pet Dietary Supplements
3. Animal Biologics (vaccine, bacterins, diagnostic kits)
78
EPA Oversees
Pesticides relating to pets
79
3 Types of Ethics
1. Social
2. Personal
3. Professional
80
4 Branches of Veterinary Ethics
1. Descriptive (ie study of ethical views of veterinarian/professionals regarding behavior and attitudes; what is right and wrong.)
2. Official (standards set by professional org)
3. Administrative (set by regulatory agencies)
4. Normative (ie the search for correct principles of good and bad)
81
4 types of moral problems in Vet Med
1. Peers
2. Clients
3. Animals
4. Society
82
Elements of Informed Consent
1. Consent given freely
2. Treatment and diagnosis explained in understandable terms
3. Risks, benefits, prognosis must be stated if treatment (diagnostic procedure)
4. Prognosis if no treatment selected must be stated
5. Alternative treatments, include risks, benefits, costs discussed
6. Client given an opportunity to ask questions and get answers
83
4 Elements to consider applying law of unjust enrichment
1. More valuable animal=greater chance of financial recovery
2. More emergent needs=more leeway to provide emergency care
3. Vet attempted to reach owner prior to medical care
4. The extent of emergency care required to stabilize the patient was reasonable
84
The 4 A's to Rise above moral distress
Ask if distress is present
Affirm commitment to address
Assess readiness to Act: (if struggling, 4R's: Revelance, Risk, Rewards, Roadblocks)
Ask
85
6 Aspects of SOP's for ethics/Law
1. Develop policy regarding shredding of confidential info.
2. Develop liability release form for volunteers, interns, students
3. Follow AVMA for updates regarding Fairness to Pet Owners and compounding
4. Develop medical record standards that are defensible
5. Develop Standards to handle client communication, conflict, and complaints
6. Ensure protocols meet state requirements daily, not just when inspected
86
2 Types of Law
1. Civil
-Tort
-Contracts
2. Criminal
87
3 or 4 Elements of a Contract
1. Offer
2. Acceptance
3. Consideration (parties promise something they weren't legally obligated to do or not do)
4. Intent to contract
88
3 Situations that may question capacity to contract
1. Minors (have the right to avoid or disaffirm contracts made when of minor age)
2. Mental Disability
3. Intoxication/substance abuse-was sober)
89
Federal Employment Posters Required
1. FSLA & Minimum wage
2. Equal Opportunity provision
3. FMLA
4. OSHA health and Safety
5. Employee Polygraph Protection Act
6. Uniform services employment & reemployment Rights Act
7. Right to Join/form unions & associations
8. State required Posters
