Veterinary visits are down on both sides of the border, and rising fees are getting much of the blame. It’s an explanation that sounds reasonable until you look at what’s happening across different kinds of hospitals. Practices charging premium prices are losing visits, and so are practices with much lower fees. The economy and how cautious pet owners have become about spending may tell us more than prices alone. That distinction matters when practices are deciding what to change next. My guest today is Darren Osborne, Director of Economic Research at the Ontario Veterinary Medical Association. Darren works with veterinary practice owners and managers to make sense of their numbers, from pricing and budgeting to financial performance. He produces fee guides, financial benchmarks, and compensation data, including VHMA’s Compensation and Benefits Report. He also works directly with dozens of hospitals on their budgets, giving him a close look at the financial challenges practices are dealing with every day. In this episode, we talk about what’s behind the drop in visits, how the pandemic changed expectations for growth, and why Darren thinks veterinary services are still undervalued. We get into staffing, AI tools, and smarter ways to schedule appointments and surgeries, along with the numbers managers should be watching each month. Darren also makes the case for giving managers more access to financial information, more responsibility, and a share in the profits they help create. Show Notes: [01:05] Darren Osborne discusses his work with veterinary practices, including financial benchmarking, fee guides, and VHMA’s Compensation and Benefits Report.

[03:49] Comparing veterinary markets in Canada and the United States, including differences in pet food sales and similar trends in declining client visits.

[05:42] Darren explains how inflation, consumer confidence, and economic uncertainty are affecting pet owners’ willingness to spend on veterinary care.

[07:00] Why Darren disagrees with the argument that rising veterinary fees are responsible for declining visits, and what the data shows across hospitals with different pricing structures.

[09:26] How the pandemic fueled veterinary industry growth through increased pet ownership, greater disposable income, and changes in consumer spending.

[12:20] Rising veterinary fees, improvements in the quality of care, and why Darren doesn’t believe the industry is headed for a financial reckoning.

[15:05] Looking beyond pandemic-era growth to understand client attrition, changing revenue expectations, and the industry’s long-term outlook.

[17:09] Why veterinary services may still be undervalued and how higher wages for veterinarians and staff have influenced pricing over the past five years.

[19:12] Improving profit margins through efficient staffing, better compensation, and teams that can handle more appointments without sacrificing productivity.

[21:06] Using AI scribes and veterinary technicians to reduce workloads, improve efficiency, and gradually increase appointment capacity.

[22:16] The financial metrics practice managers should monitor, including inventory costs, labor expenses, monthly revenue, and client visits.

[23:35] How grouping surgical procedures into dedicated surgery days can reduce downtime and increase hospital productivity.

[25:53] Giving practice managers greater access to financial information and encouraging them to take responsibility for budgeting and financial performance.

[28:10] Why Darren views practice managers as an investment and recommends performance-based bonuses tied to increased hospital profits. Links and Resources:VHMAOntario Veterinary Medical AssociationDarren Osborne – LinkedIn