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View Full Version : Does your vet mark drugs waaaayyy up?


Gayla
May. 17, 2009, 09:46 PM
The isoxoprene that I picked up from my vets office was 90 bucks. Then I see it at SmartPak for 35. :eek: Then I look around a bit and find it even cheaper. Does your vet mark things up that high? It makes me feel ripped off. As if I haven't spent hundreds and hundreds and hundreds of dollars already. :no: I understand a markup but...really?...really? 90 dollars?

futureeventer
May. 17, 2009, 11:29 PM
That mark up definitely seems like it's on the high side. I've found the "fancier" clinics mark up the most, and they're often the ones who won't write you a prescription so you can buy it cheaper online. You could ask for a prescription, or failing that, maybe you could ask your vet to match the SmartPak price?

horsepoor
May. 17, 2009, 11:38 PM
I've found the "fancier" clinics mark up the most, and they're often the ones who won't write you a prescription so you can buy it cheaper online.

For me, the "fancy" clinic has always marked things up the least, and my vet that operates on his own (no clinic, just him) marks things up the most. The latter has told me that he can't get the discounts on things that the other big clinics get, but I am not so sure...he does push a lot of drugs...

My recent example was the 7-vial course of Adequan. My vet charged me $420 -- but the guy down the road (another single vet, not a big clinic) charges $290 while the big, fancy clinic that I sent my horse to for surgery charged me just $250 for the same thing!

I sometimes look at it as a package deal - my vet marks drugs up a lot, yes, but he is pretty inexpensive for other things, like farm calls, exams, etc. I kind of have to look at the total and compare so I feel better about paying his bills (but I did object on the Adequan bill -- which I never have done with him in the past -- and he did come down on that).

showponies
May. 17, 2009, 11:45 PM
Try www.vet-servusa.com , you don't need a vet slip, but I think you get even a deeper discount if you have one....

Fharoah
May. 18, 2009, 12:36 AM
My recent example was the 7-vial course of Adequan. My vet charged me $420 -- but the guy down the road (another single vet, not a big clinic) charges $290 while the big, fancy clinic that I sent my horse to for surgery charged me just $250 for the same thing!

I live in BC and get charged $250 for 4 vials of adequan

My vet changes me $130 for a legend shot plus vet call

Your lucky!

ponykick
May. 18, 2009, 12:40 AM
A veterinarian must give you a written prescription if you ask for it. If he or she is the treating vet for your horse, it is against the law to deny a client a written prescription if it is requested. Not many vets will go out of the way to point this out to you, so you may have to ask.

Kareen
May. 18, 2009, 02:44 AM
Wow, that all sounds pretty drastic. Here you aren't allowed to free-calculate medication if you are a veterinary business. There are strict guidelines about what you are allowed (even obliged to) mark up. The only difference therefor lies in the bulk discount you negotiate with the pharmacy suppliers which obviously puts bigger clinics in a better position to pass on those discounts to their clientele.
I wouldn't even think of insisting on a prescription from my own vet simply because I wouldn't want to offend them. Afterall those docmorris and internet-guys won't come out on farmcalls by night to treat your emergencies, they don't provide advice along with the medication, don't keep an eye on your vaccination or deworming schedule, feed regiment, they don't maintain an extensive and costly inventory of emergency medication etc.etc.
Quite honestly if one of my clients would pressure me to write them a prescribtion for something because they can order it 10€ cheaper on line (minus the fee for the prescription minus post an package that is...) I'd give them a piece of my mind and send them elsewhere.

foggybok
May. 18, 2009, 02:48 AM
A veterinarian must give you a written prescription if you ask for it. If he or she is the treating vet for your horse, it is against the law to deny a client a written prescription if it is requested. Not many vets will go out of the way to point this out to you, so you may have to ask.

Not always, each state has different laws. It depends on where you are.

RockinHorse
May. 18, 2009, 07:27 AM
My vet does mark meds up quite a bit, however, I am happy that he provides the service to have a variety of meds available at the time of the visit so we can get started right away on whatever we need. That to me is worth paying more than having to order them and then wait for them to arrive.

Gayla
May. 18, 2009, 08:00 AM
Wow, that all sounds pretty drastic. Here you aren't allowed to free-calculate medication if you are a veterinary business. There are strict guidelines about what you are allowed (even obliged to) mark up. The only difference therefor lies in the bulk discount you negotiate with the pharmacy suppliers which obviously puts bigger clinics in a better position to pass on those discounts to their clientele.
I wouldn't even think of insisting on a prescription from my own vet simply because I wouldn't want to offend them. Afterall those docmorris and internet-guys won't come out on farmcalls by night to treat your emergencies, they don't provide advice along with the medication, don't keep an eye on your vaccination or deworming schedule, feed regiment, they don't maintain an extensive and costly inventory of emergency medication etc.etc.
Quite honestly if one of my clients would pressure me to write them a prescribtion for something because they can order it 10€ cheaper on line (minus the fee for the prescription minus post an package that is...) I'd give them a piece of my mind and send them elsewhere.

I agree with you in so many ways. I am always careful to use the vet that I may call out in the middle of the night for everything else. BUT, there is a mark up on drugs and then there is dishonesty. I think marking a drug up ten times is a bit much. I also pay top dollar for farm calls (75 and they are less than 10 minute drive) and for all services. I paid 50/rad last week for 4. Just say'in...:)

trubandloki
May. 18, 2009, 08:55 AM
My vet does mark meds up quite a bit, however, I am happy that he provides the service to have a variety of meds available at the time of the visit so we can get started right away on whatever we need. That to me is worth paying more than having to order them and then wait for them to arrive.

I totally agree!

WorthTheWait95
May. 18, 2009, 10:09 AM
I never hesitate to ask for a script from my vet. I'm just totally honest with him and tell it like it is. I told him I'm a college student and although I do have help from my dad for most of my horses care I need to save as much money as I can and using scripts is the best way to do that.

He totally understands and offered to instead of writing me a script just price match his drugs to whatever I find online so I don't have to deal with the hassle of shipping. His clinic has GIGANTIC mark ups too. The previcox I have now cost me around $50 after the pricematch. They would have charged me $145 :eek:.

It helps that my horses are boarded at his house, though. I'm not sure if he would be as willing to pricematch for other clients that he doesn't have to see everyday.

goodhors
May. 18, 2009, 10:18 AM
Everything the Vet does, comes under "cost of doing business". Time is money, and they need to charge enough to cover their time, expenses AND make a little over to pay themselves. If they are ordering meds for you, or paying staff to do so, that costs them money. They could/would be using that same time for other money making endeavors instead. Some meds that they keep on the shelf expire before getting used, no profit on that stuff, still have to replace it , which all costs, double in this case.

Volume buying will usually give the purchaser a price discount, but single Vet is not going to need that much stuff, and it expires. Have to keep a lesser inventory, but it costs more to purchase and use for that Vet. Yet you STILL expect the Vet to have every possibly needed meds ON HAND for a call out or emergency. They have to pay for that stock somehow.

Talking to an accountant, sometimes you just have to charge till you turn a profit!! Amazing concept! Vets have to pay for reliable vehicles, sometimes office help, phones, equipment to diagnose with, Meds inventory, supplies for bandaging, fuel, Accounting fees AND pay the mortgage, buy food to eat and clothes to wear. To do that many put in 12hrs a day, regularly. With calls during their days off. Most Vets are not getting huge amounts of money after deducting the bills.

If a Vet is charging you $XX amounts, then s/he has figured the price of that medicine or visit, to be what they NEED to get paid to stay in business. If you do not like this or that Vet, do not call them. Call someone cheaper.

Do not expect the pricy Vet then to come save your equines during the emergency when you have it. You have no business relationship to work with. Maybe you can call the On-Line Pharmacy?? You have spent money with them!! Your saving the dollars, cost you in other places. Maybe that more costly Vet has just gone out of business or moved away, could not make expenses in your area.

We all have a certain amount of money available to the horses. Shopping around CAN save you some in purchases, but sometimes you have to cut spending elsewhere if you want the very pricy meds used on your horse.

I know horses are expensive, but reading the various threads on what folks pay for feed, meds, supplements, saddles, tack, just floors me. And the spending NEVER stops, yet no one seems to think anything of it! It is your money, but I keep going "Wow!".

Don't whine about costs at the Vet. I have not seen any prices for meds, supplies going down in any catagory. Fuel to run a vehicle is still double or more, from 4 years ago. They have to price time and expenses high enough to turn a profit, just like any other business. Those Vets who do "deals" are not doing themselves any favors, just cutting the profit margin even closer, not paying themselves. Bad business sense is what will put them out of business, then you will have even fewer Vets to choose from than now.

We have about 5, 3 in one practice, 2 in another, that do horses within an 80 mile radius. We try to take good care of them, they all have actually got great "horse sense", not treating equines like cattle or hogs, which the other Vets around care for. I don't want the pig vet coming for my new foal inspection and mare check after foaling. We pay what they charge. Still way cheaper than hauling down to State with the Vet Clinic.

Kareen
May. 18, 2009, 12:21 PM
I agree on 10-times markups being unethical. Much like I don't believe in 20% or up commissions on horse-sales. So if there aren't any limitations on your end I guess that yes it's customer beware. But goodhors is definitely correct in a vet business being a mixed calculation and having more factors to it than just buy at x and sell at y.

jacksmom
May. 18, 2009, 01:56 PM
my vet only has a very slight mark-up on meds. the last time one of my horses got erlichia, i was able to treat it (10 days of oral anti-biotics) for $17.52. i know that i'm lucky to have access to a sharp and reliable practice.

it makes me cringe when i read about huge variations on what folks are paying for what. meds should be a fixed cost. i think that BIG mark-ups on meds are either gouging or bad accounting practices, neither one would help in building client loyalty with me.

i'm a contractor, graphic artist, and i charge people for my time. i know what my time is worth and what it takes to cover my overhead. i don't mark-up any outside purchases i make to get a job done (ex. - photography, stock art, paper, printing costs...), they are noted in my invoice and passed on 'at cost' (most of the time my clients deal directly with any outside vendors we might use during a job anyway).

i must be doing something right, because i keep busy without advertising and most of my clients have been with me for 4 or more years. i think if my clients found that i was tacking on a surcharge to outside purchases they'd feel ripped off - i wouldn't blame them, and they'd move onto to another designer...

jetsmom
May. 18, 2009, 02:12 PM
A veterinarian must give you a written prescription if you ask for it. If he or she is the treating vet for your horse, it is against the law to deny a client a written prescription if it is requested. Not many vets will go out of the way to point this out to you, so you may have to ask.

Only some states have that as a law. And in most cases, you MUST be a client of that vet.

Most vets will often match prices with the price you find online if you ask nicely...ie "Gosh, with the economy the way it is, I'm having a hard time paying that much for "x". I saw it online for "x", but would like to give my business to you if possible. Do you think you could match that price or at least get closer to it, so I can keep my business with you?" Never had a vet not get really close to the online price, by asking this way.

Angela Freda
May. 18, 2009, 02:22 PM
Oh yes, the $200/bottle of Doxy was truly priceless.
Only surpassed by the 'I do this out of the kindness of my heart' speech I got when I 'whined' [asked for an RX to get it from Smartpak for $54/bottle].

I understand Vets having to make something on everything, esp. those in private/solo practice.

Ben and Me
May. 18, 2009, 02:27 PM
A lot of times it depends on the veterinary distributer the vet uses. I know at our small animal clinic, we don't have a lot of control over what we pay--the distributer sets the price and we mark up as needed from there. For one of the pain medications we carry, we have to charge $0.90/pill. However, it is a drug that is also on the $4/month list at Target. We can't compete with that price from Target because of what we have to pay through our distributer (among other reasons, haha). We do offer other meds (HeartGuard, for example) at a price that is actually less than that charged by PetMeds. So, you might be paying more for Adequan but paying less than average for Bute.

I'm not a practice manager, but I'd imagine it just isn't feasible for the average small clinic to use 10 different distributers just to get the cheapest prices on every drug they might need. OTOH, it is feasible for 1800PetMeds or whomever because that is all they do. We also have to focus on practicing medicine...shopping around through multiple distributers for drugs we may not use on a regular basis just increases the amount of manpower we have to use--and that will again be transferred to the client.

Ghazzu
May. 18, 2009, 02:30 PM
Only some states have that as a law. And in most cases, you MUST be a client of that vet.

Are you implying here that anyone would even consider asking a DVM that you *weren't* a client of to write you an Rx?

Because I don't know anyplace that the laws would allow for that.
Presctiption drug regs mandate a veterinarian-client-patient relationship exists.

futureeventer
May. 18, 2009, 02:54 PM
Vets have to pay for reliable vehicles, sometimes office help, phones, equipment to diagnose with, Meds inventory, supplies for bandaging, fuel, Accounting fees AND pay the mortgage, buy food to eat and clothes to wear. To do that many put in 12hrs a day, regularly. With calls during their days off. Most Vets are not getting huge amounts of money after deducting the bills.

Excellent point. I would add that a lot of vets are still paying off the $80,000-$100,000+ they incurred for their vet school education. Also take into account that equine vets are the lowest paid veterinary group as a whole, with small animal and large animal vets (such as cow vets) typically making a significantly higher income than equine vets.

Go Fish
May. 18, 2009, 03:01 PM
Both my large and small animal vets do...:sigh:

Dirty Little Secret
May. 18, 2009, 03:10 PM
geez that's a high mark up. My horse vet does have a reasonable mark up but fortunately I used to work for my local small animal doc and she gives me most of my drugs at cost. VERY wonderful for my stretched budget.

Marshfield
May. 18, 2009, 07:48 PM
I have seen products such as Interceptor for sale in KV Vet for less than we buy it for.

It varies from practice to practice. Where I practice (small animal only, though I did equine work for the first five years), we charge more for our professional services than other practices in the area but less for meds. I'm happy to provide the written script for the $4 Wal-Mart or Target generic. To me it means the client is likely better able to afford the professional services I provide

Gayla
May. 18, 2009, 09:34 PM
I have seen products such as Interceptor for sale in KV Vet for less than we buy it for.

It varies from practice to practice. Where I practice (small animal only, though I did equine work for the first five years), we charge more for our professional services than other practices in the area but less for meds. I'm happy to provide the written script for the $4 Wal-Mart or Target generic. To me it means the client is likely better able to afford the professional services I provide
See, this is what I think. I mean if you break the bank we start to have to cut back on all of our services. I called the office today and the "tech" said that they pay .06/pill and they sell it for .09/pill. I suggested they buy it from smartpak! She was not amused. But I mean if they are getting taken to the cleaners by their wholesaler it is not my fault. :no:

Ben and Me
May. 18, 2009, 09:53 PM
But I mean if they are getting taken to the cleaners by their wholesaler it is not my fault. :no:

There are more reasons to select a wholesaler than just price. Maybe they offer better customer service/shipping service/product selection/whatever. A $0.03 markup is probably less than the MSRP. The wholesaler's price depends on which manufacturer they're getting the drugs from (for generics only, obviously), so even they may not have much control over their prices.

If you are so unhappy, why don't you switch vets? If you're happy with the medicine that your vet is practicing, don't you think he or she deserves to be better financially compensated than the vet whose practices you don't agree with? People are willing to pay more for higher quality cars...why do they expect the same prices from all vets?

Gayla
May. 19, 2009, 07:23 AM
There are more reasons to select a wholesaler than just price. Maybe they offer better customer service/shipping service/product selection/whatever. A $0.03 markup is probably less than the MSRP. The wholesaler's price depends on which manufacturer they're getting the drugs from (for generics only, obviously), so even they may not have much control over their prices.

If you are so unhappy, why don't you switch vets? If you're happy with the medicine that your vet is practicing, don't you think he or she deserves to be better financially compensated than the vet whose practices you don't agree with? People are willing to pay more for higher quality cars...why do they expect the same prices from all vets?
Weeeellll, I am not unhappy with the vet. I never said that. I also pay ALOT for their services. It makes me sad that they are being taken to the cleaners for their medication. They could buy then retail from KV Vet and still come out at less than they are paying wholesale.

trubandloki
May. 19, 2009, 08:39 AM
They could buy then retail from KV Vet and still come out at less than they are paying wholesale.

*disclaimer - I really do not know how this medical drug distribution thing works, just a thought I had.

If they buy it retail from KV or such how do they guarantee the quality? I would think they would have better control over that getting it thru a properly run wholesaler.

county
May. 19, 2009, 09:59 AM
If I buy from either of the vets I use they mark it up 10% but I rarely buy from them I just get a prescription from them and buy it myself.

ImJumpin
May. 19, 2009, 10:17 AM
Excellent point. I would add that a lot of vets are still paying off the $80,000-$100,000+ they incurred for their vet school education. Also take into account that equine vets are the lowest paid veterinary group as a whole, with small animal and large animal vets (such as cow vets) typically making a significantly higher income than equine vets.

A lot of us non-vets are still paying off the $100k+ incurred for higher education. I don't get to factor that in to my salary.

Ghazzu
May. 19, 2009, 10:49 AM
A lot of us non-vets are still paying off the $100k+ incurred for higher education. I don't get to factor that in to my salary.

Are you self-employed?

ImJumpin
May. 19, 2009, 11:13 AM
Are you self-employed?

No, and my vet isn't either...

touchstone-
May. 19, 2009, 11:20 AM
If you are so unhappy, why don't you switch vets? If you're happy with the medicine that your vet is practicing, don't you think he or she deserves to be better financially compensated than the vet whose practices you don't agree with? People are willing to pay more for higher quality cars...why do they expect the same prices from all vets?

This seems like a non sequitor to me. Of course, I'm willing to pay more for vet services from an excellent vet than an less-than-excellent one. I'm paying for their expertise, technique, better equipment, etc., and I generally understand that the really good vets cost more.

However, that does not have a thing to do with where I buy my prescription medications. If my vet can offer a competitive price or is able to offer me the benefit of speed or other convenience that I value, I buy from the vet. Otherwise, I ask for a prescription and get the medication for the best price I can from a reputable seller. My vets don't seem to have any problem with this. Why should you?

I certainly don't understand why I should expect to pay more for prescription medications if I'm using a "better" vet.

LuvMyTB
May. 19, 2009, 02:05 PM
To the OP: yes, my vet marks things waaay up.

Isoxsuprine: $100/bottle (this was 2 yrs ago, I found it online for about $25)

Injectable glucosamine: $100/bottle (can be purchased online for $52)

If I ask for an Rx, I get a) a hard time from receptionist and b) $15 Rx charge.

I am switching vets soon. I adore my current vet--she has taken great care of my horse--but I just can't afford her.

Ben and Me
May. 19, 2009, 09:47 PM
I certainly don't understand why I should expect to pay more for prescription medications if I'm using a "better" vet.


Because it is one of the few ways that they can make money? They can either charge more for medical care or prescriptions...Either way, they have to turn a profit somewhere to stay in business. Would you rather pay more for a physical/vaccines (that you'll need every year) or for an antibiotic (that you may only need a few times over the course of your animal's life)? As I stated before, our clinic actually marks up drugs needed on a regular basis (heartworm prevention) very little, but does mark up some of the other drugs (mostly those used short-term) a bit more.

I don't have a problem at all with vets writing prescriptions--we do it at my clinic all the time. However, I also understand why some vets aren't interested in doing so. We charge a fair amount for our medical services. Other vets may charge less and, as I stated above, have to make up the money elsewhere.

Look, vets don't make a ton of money. Period. The average starting salary for an equine vet is $40,000. I'm willing to bet that the vast majority of you on this thread make a good bit more than $40k, and if you do only make $40K, you aren't paying off $75k in student loans. The median salary for vets in general is $70K a year...still probably less than many of you...and certainly a lot less than the average doctor (who went to the same 4 years of professional school and has a similar level of responsibility and stress). http://www.bls.gov/oco/ocos076.htm

Your vet isn't out to screw you, they just want to be able to afford to pay off their loans and maybe even put a down payment down on a house.

Sorry, it's just a pet peeve of mine...I don't know a single person going into the veterinary field in order to get rich. Most are just completely freaked out about the amount of debt they're about to take out and whether or not they'll (ever) be able to pay it off.

chai
May. 20, 2009, 09:44 AM
They do, but they are also the ones who will drop everything and rush to help your horse in an emergency, so I don't begrudge them the extra money. It's a tough, dangerous way to make a living and what would we do without them? My vets have been there with me to ease the suffering of injured horses, help me say goodbye with dignity and kindness when the time came and answered my every phone call and question with good cheer. So I don't begrudge them any markup on the things I buy from them.

desert_rat
May. 20, 2009, 10:09 AM
My vet does mark items up, but as he explained - SmartPak, KV etc can buy these drugs in huge quantities because they will sell huge quantities; therefore they get a better price from the wholesaler. He may only be able to buy a smaller amount (based on demand and available funds) and therefore doesn't get as good of a discount. He actually has some items that SmartPak is selling for just a few cents over what he is paying for them.

My suggestion is ask for a script. As another poster said - laws vary state to state. Some vets will do a script to keep your business - others won't. There is always some mark up to cover shipping, inventory, dispensing, time ordering and all that overheard that even non-clinic vets have.....


I try to work half way - the items I can afford - I buy from the vet. The higher priced items that are signifigantly cheaper from others - ask for a script...

Auventera Two
May. 20, 2009, 10:18 AM
Libbey's pergolide is $90/month at the vet clinic, and $15/month online. They wrote me a perscription with no problem, but its a brand new vet in this big fancy clinic that doesn't normally allow it, so I think I got very lucky.

But anyway, I don't have a problem with the vets charging a little more. I'm a dealer for Easycare and the prices that Valley Vet gets on boots is a lot less than what I pay Easycare for boots, because they buy 5,000 times more than me. It's frustrating to spend an hour fitting and measuring for boots, explaining all the little nuances of the chosen style, only to have the person say thanks, I'm going to order from Valley Vet because they're $10 a pair cheaper than you. :dead: Learned my lesson on that one - now I do things differently.

I buy what I can from the vet, but something like the mega difference in pergolide, I asked for the script. If its a one time deal and it's only 5 bucks more, then I just go with the vet.

touchstone-
May. 20, 2009, 10:59 AM
Because it is one of the few ways that they can make money? They can either charge more for medical care or prescriptions...Either way, they have to turn a profit somewhere to stay in business. Would you rather pay more for a physical/vaccines (that you'll need every year) or for an antibiotic (that you may only need a few times over the course of your animal's life)? As I stated before, our clinic actually marks up drugs needed on a regular basis (heartworm prevention) very little, but does mark up some of the other drugs (mostly those used short-term) a bit more.

I don't have a problem at all with vets writing prescriptions--we do it at my clinic all the time. However, I also understand why some vets aren't interested in doing so. We charge a fair amount for our medical services. Other vets may charge less and, as I stated above, have to make up the money elsewhere.

Look, vets don't make a ton of money. Period. The average starting salary for an equine vet is $40,000. I'm willing to bet that the vast majority of you on this thread make a good bit more than $40k, and if you do only make $40K, you aren't paying off $75k in student loans. The median salary for vets in general is $70K a year...still probably less than many of you...and certainly a lot less than the average doctor (who went to the same 4 years of professional school and has a similar level of responsibility and stress). http://www.bls.gov/oco/ocos076.htm

Your vet isn't out to screw you, they just want to be able to afford to pay off their loans and maybe even put a down payment down on a house.

Sorry, it's just a pet peeve of mine...I don't know a single person going into the veterinary field in order to get rich. Most are just completely freaked out about the amount of debt they're about to take out and whether or not they'll (ever) be able to pay it off.

I'm sorry, but this sounds like a problem with your practice's business model. As I said before, I am more than happy to support my vet's salary and help them repay their debt, and I think they should be compensated for the very wonderful work that they do. But for all the reasons posters have stated before, a veterinary practice is not an ideal pharmacy, and I don't think that any practice should be set up to subsidize other services with profits from prescription medication that can be easily purchased from other vendors with lower overhead.

I don't think my vet is out to screw me, but in every other area where I purchase goods, I shop for the best quality and price. I choose my vet because for these reasons too, which is why I pay $$$ for those high quality services that I feel I could not purchase somewhere else for less and try to pay less for fungibile goods. I don't want my vet to be losing money on my horse's routine care.

Again, I simply don't understand why this should be an area for conflict. If customers want to buy drugs from their vet, great. If they don't, in my view, the vet should smile and write a prescription--perhaps attaching a fee if it's an administrative headache. If that results in a massive profit loss for the practice, then they should rethink their pricing for those services that they continue to exclusively provide.

Ghazzu
May. 20, 2009, 11:07 AM
If they don't, in my view, the vet should smile and write a prescription--perhaps attaching a fee if it's an administrative headache. If that results in a massive profit loss for the practice, then they should rethink their pricing for those services that they continue to exclusively provide.

And then we'll be regaled with threads complaining that the vet:

a)charged for writing a prescription
b) billed for a phone consult
c) charged an emergency fee
d) added finance charges to an outstanding bill...

Mind you, I'm certainly not disagreeing that the DVM shouldn't rely on dispensing to cover other practice expenses, but pretty much every practice consultant I've heard has said that, if Rx drugs dispensed are not marked up a minimum of 2X the purchase price, that the DVM is losing money on them, once the costs of carrying the inventory are calculated.

Ben and Me
May. 20, 2009, 12:43 PM
If that results in a massive profit loss for the practice, then they should rethink their pricing for those services that they continue to exclusively provide.

Just because you can afford to pay more for a rabies vaccination or emergency physical exam doesn't mean that others can. Until pet health insurance becomes widely used (and I am not endorsing the widespread use of pet insurance, less the vet field become like the human medical field!), vets will have to continue pricing their services within a limited price range, in order to keep their services affordable for a wider range of people, and have to make up the difference somewhere. Maybe not necessarily on Rx drugs, but that is certainly one option for a lot of practices.

Angela Freda
May. 20, 2009, 02:06 PM
I don't think my vet is out to screw me, but in every other area where I purchase goods, I shop for the best quality and price. I choose my vet because for these reasons too, which is why I pay $$$ for those high quality services that I feel I could not purchase somewhere else for less and try to pay less for fungibile goods. I don't want my vet to be losing money on my horse's routine care.

Again, I simply don't understand why this should be an area for conflict. If customers want to buy drugs from their vet, great. If they don't, in my view, the vet should smile and write a prescription--perhaps attaching a fee if it's an administrative headache. If that results in a massive profit loss for the practice, then they should rethink their pricing for those services that they continue to exclusively provide.
Drs. for humans don't sell drugs.
It's interesting since the 2 professions that are very similar.

foggybok
May. 20, 2009, 02:18 PM
Sorry, it's just a pet peeve of mine...I don't know a single person going into the veterinary field in order to get rich. Most are just completely freaked out about the amount of debt they're about to take out and whether or not they'll (ever) be able to pay it off.

And I have counseled many young students thinking about becoming vets. It was a red flag when I heard them say "I want to be a vet so I can make good money". Time for a big reality check. For the time, money and education invested, veterinary medicine does NOT pay very well...... You have to do it for the love of science and medicine........

foggybok
May. 20, 2009, 02:28 PM
Drs. for humans don't sell drugs.
It's interesting since the 2 professions that are very similar.

Actually, some of the human physicians rely on very similar business practices. They can not sell certain types of medications, but they can sell things they have to administer. In some cases, they charge a HUGE mark-up on these things in order to subsidize other parts of their clinic. This has caused a fuss in some areas due to reimbursement policies and practices are going to have to change.

Lori B
May. 20, 2009, 03:17 PM
My vet does not. Last winter Katy had Lyme, and we bought bottles and bottles of doxycycline, and when I comparison shopped very thoroughly, I found that I was getting a very competitive price on the drug. I was very pleased.

DMK
May. 20, 2009, 03:36 PM
I'm sorry, but this sounds like a problem with your practice's business model.

If you take a look at human medicine, you realize there is no easy answer to any of this. Like it or not, Rx markup probably subsidizes the increasingly sophisticated diagnostic tools available as well as routine preventive care type services, even though this runs headfirst into cost models clearly advertised by independent retailers of the same Rx.

It's mostly unrealistic to develop a medical economics system that truly is based on actual value for specific services but it's equally challenging to create a balanced subsidy system that still attaches appropriate value to services. About the only guarantee is at any given moment 50% of the people will love/hate whatever you do. The other 50 are just waiting for their moment in the sun. ;)

If a practice readily gives out prescriptions, I would expect that I might be paying higher in call charges and that they would charge a significant amount for a "starter" scrip, because they have committed to handing out scrips. By definition this means they are going to maintain a lot less inventory on hand and use a lot less of it. This means they have less negotiating power with distributors and run a higher risk of loss/waste due to expiration of their on hand supply.