Business Economic Notes - 15
Veterinary Surgeons
These notes are issued to Inspectors of Taxes to assist them in examining accounts. They are intended to provide a general background to the trade, with some explanation of its most important features. Business Economic Notes are not intended to provide an exhaustive or definitive picture of any particular trade or profession.
Contents
- Small animals
- Large animals
- Equine
- Mixed practice
4. Government veterinary services
- Income
- Purchases
- Ratio of fees to drugs sold
- Mark-up on purchases
1 General |
Veterinary Science encompasses the prevention and car of animal disease, promoting animal welfare, research into animal ailments and development of more efficient methods of animal husbandry and stock breeding.
Education and training for Veterinary Science is degree based, with courses lasting five years. Two years are devoted to the study of basic science, such as biology, chemistry, anatomy, physiology, pathology, biochemistry and some genetics and micro-biology. The final years involve more specialised studies in Veterinary Science, medicine, surgery and other integrated studies covering such subjects as pharmacology, animal husbandry, public health and so on.
On successful completion of their studies, graduates are then required to register with the Royal College of Veterinary Surgeons before they can practice.
The vast majority, around 70% of the 10,000 + registered veterinary surgeons work in private practice, with the remainder employed by
the Civil Service (MAFF)
local government
Universities or commercial companies as research/technical advisers
the Armed Forces
the Overseas Development Administration
Industry - pharmaceutical companies (development and marketing).
2 Specialisms/duties |
The general duties of a veterinary surgeon include the diagnosis of diseases in and injuries to animals, providing advice upon such diagnosis and generally, the medical or surgical treatment of animals.
Depending on the area and/or type of practice, a veterinary surgeon may become familiar or specialise in either small animals (domestic pets) or large animals, principally farm animals.
Apart from these general specialisms relating to type of animal, they may either specialise in certain diseases or in certain anatomical or physiological areas.
Specialist surgeons will normally be attached to a veterinary hospital or research establishment and provide valuable consultancy advice to veterinary surgeons in general practice.
3 Practice structure |
Veterinary practices normally deal with the care of a broad spectrum of animals, such as domestic pets, farm livestock, horses/ponies and bloodstock.
Depending on location for example, suburban, city, town, countryside, they will obviously have more call on their services in one particular area and probably develop a specialism within that field. Basically the specialism are brought together under the following categories.
Small animals
Usually all practice work, with very little outdoor visits, mainly emergencies. They will be concerned with care and treatment of a wide variety of domestic animals, birds, reptiles and fish.
Some may also be involved in additional duties, such as
veterinary supervision of boarding and quarantine kennels
acting as advisors at greyhound racing circuits
providing veterinary services for animal welfare societies.
Large animals
They will deal almost exclusively with farm animals, providing a 24 hour on-call service. Apart from emergencies arising from illness or injury, they will be involved in the routine seasonal tasks, such as pregnancy diagnosis, fertility control, vaccinations, disease detection, general care and maintenance and also advise on farm husbandry and management.
Equine
Servicing all types of equine establishments, such as stud farms, bloodstock breeding and training stables, equestrian and livery stables and also the pleasure riding market, domestic horses and ponies. Those practices involved with bloodstock are more specialised and concentrated mainly in centres of bloodstock breeding, training and racing areas. They will provide a full-time on-call service to breeding and training establishments and be closely involved in the care and maintenance of valuable stock.
Mixed practices
These are practices which will carry out work in more than one group, for example, small animals and equine and so on.
4 Government veterinary services |
Veterinary surgeons, especially those in farm practices may be appointed to a general panel of LVIs (Local Veterinary Inspectors).
LVIs, on behalf of MAFF (Ministry of Agriculture, Fisheries and Food) and local government environmental health departments may carry out official inspections, tests, vaccinations, certifications and other procedures required by the respective departments.
LVIs are also involved in the control and eradication of tuberculosis and brucellosis. They undertake inspection and certification of meat products for export. Veterinary Surgeons are also involved in quarantine duties and those on the LVI panels are responsible for export certification for small animals, birds and fish.
All LVI work is remunerated on a scale of fees negotiated with the BVA (British Veterinary Association) and are normally subject to review every three years.
Fees are payable to the practice or sole practitioner and take into account the normal expenses in undertaking the services. They are made in accordance with a fixed scale of charges. In addition, car mileage allowances are paid at official rates.
5 Pharmaceuticals |
The vast majority of practices, stock and retail their own medicinal supplies. In recent years, general chemists are slowly moving into the pet care field. Supplies are obtained from wholesalers or by means of a co-operative buying group, with certain commodities obtained direct from manufacturers. Like other general pharmacists, the veterinary surgeons may only supply medicinal products to their clients.
Supplies of medicines will normally be charged out to customers at retail prices.
6 Assistants |
Whilst most practices are sole or partnership based, a substantial number employ assistants, either on a part time or full time basis.
Practices may provide additional benefits to assistants, such as business car, free accommodation or a housing allowance.
7 Practice economics |
7. Practice economics
Income
A practice's income will typically consist of examination and treatment fees, medicinal charges, call-out charges, consultancy and advisory duties and LVI fees.
The call-out fee covers travel and compensation for time away from the base worked out on a head basis (charge per animal) for livestock and is variable depending on the type or practice, distance travelled, and type of service required by the client.
The statistical information shown below is by courtesy of the British Veterinary Association and the Society of Practising Veterinary Surgeons Practice Survey for 1988.
The following table provides details of the average gross income (fees & drug sales potential per practitioner, exclusive of V.A.T.
|
1987 |
1988 |
|
| Small animals | £48,408 | £58,262 |
| Mixed | £55,621 | £61,612 |
| Large animals | £64,648 | £69,206 |
The table below represents in percentage terms the type of work done in a practice. The results are based on the sum of all practices surveyed and is therefore a general reflection of a veterinary practice.
|
Fees
|
Drug sales
|
|||
|
1987
|
1988
|
1987
|
1989
|
|
| Large animals |
24.56
|
20.39
|
58.26
|
56.08
|
| Small animals |
59.56
|
65.33
|
36.64
|
39.17
|
| Equine |
6.87
|
7.08
|
5.10
|
4.75
|
| MAFF |
5.19
|
4.07
|
-
|
-
|
| Other |
3.82
|
3.13
|
-
|
-
|
Purchases
The purchase of drugs and consumables is the single largest item of expenditure normally incurred by a veterinary practice.
The following tables shows the cost of drugs and consumables per practitioner
|
1987
|
1988
|
|
| Small animals |
£10,283
|
£12,987
|
| Mixed |
£17,110
|
£19,340
|
| Large animals |
£28,467
|
£28,421
|
In the equine sector the share of drug sales appears to have generally decreased. The is borne out by the lower ratio of fees to drug sales.
Mark-up on purchases
The overall mark-up on purchase of drugs averages at 38.5% for 1988, as compared to 35% in 1987 and 38% in 1985. The small animal practices appear to have the lowest mark-up figures, with mixed and large animals very nearly equal. Some explanations why this should be so are
- that small animals practices may purchase more consumable items, such as oxygen, surgical scrubs and suture material, which will be included in cost of drugs and are not sold on to the client
or
- that the sale of drugs in small animal work may not carry the significance it does in large animal work and less care is taken in updating purchase prices and in recording all sales separately.
It is also true to say that wastage owing to the limited life of most medicinal products may have an effect on the overall mark up on drugs. Some practices, especially those servicing a wide variety of species, may be obliged to hold a greater range of medicines in order to meet most contingencies and will expect a higher incidence of wastage due to expiry dates.
Produced by the Inland Revenue
October 1990
© Crown Copyright 1990
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