bonus

Bonus culture

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Things are changing in veterinary medicine, and quickly. Close your eyes for a few minutes, or – more accurately – take a few months off from general practice, and you can feel rather lost when you’re greeted by all the new products on the shelves.

Except most of them aren’t new at all, they’re the same old products repacked and renamed to fit in with whichever corporate group is now in charge.

Hitherto, I’ve been silent about the rapid revolution quietly transforming veterinary practice in the UK, largely because the wheel is still in spin and it’s hard to say what the overall effect will have been.

The big question

curate's egg
“True Humility” by George du Maurier, from the 9 November 1895 edition of Punch – the origin of the phrase “Curate’s egg”. In it, the bishop says “I’m afraid you’ve got a bad egg, Mr Jones,” to which – apparently trying to avoid offence or curry favour – the curate replies, “Oh, no, my Lord, I assure you that parts of it are excellent!”

To me, as ever, the most important question is whether the corporatisation of vets will provide a better or worse service for pets and clients – or, to boil it down to the question always central for me: will it be better or worse at helping to relieve suffering?

The very short answer to that question is: I don’t know.

Like all of us, I hear vague horror stories, usually about “other” corporates than the one that owns the practice I’m working in, but I’ve seen my fair share of unprofessional and unethical work in non-corporate practice in my time, so I am not sure there is an obvious or simple answer, other than to say it appears rather like a curate’s egg (by which I mean good in places and bad in others, rather than, say, Raymond Chandler’s egg, which is, of course, hard boiled and slightly gritty).

However, there’s an area of corporate practice that I’d like to talk about specifically in this blog, though: bonuses.

Earnings related

I was never a very good earner for the practice. When I topped earnings lists, which wasn’t often, it was because of throughput, not individual bills. I was always quick and I had a knack of making decisions quickly and getting through consults without making owners feel rushed, but I always struggled with charging appropriately for my time.

Fortunately for me, I spent much of my career without earnings-related bonuses, but I think that kind of job is rapidly heading the way of the dodo. Most people I know in general practice are on bonus schemes related to how much they earn for the practice.

So, good or bad? Well, I’m sure it’s great for business, otherwise they wouldn’t do it, and I can understand the good very easily.

Motivation

I mentioned I always struggled to charge appropriately for my time, and that’s a bad thing. I was highly trained and was investing time, skills and, in many cases, a great deal of emotional energy into these cases I saw, and letting people off the odd few quid because it didn’t feel right to charge them meant other people would have to pay more to make up the difference.

I don’t know if a bonus would have mattered desperately to me, but knowing my earnings were being closely scrutinised would, I think, have motivated me to charge more, and more often than I did. As well as this, the prospect of better pay for vets and nurses, however it is achieved, has got to be a good thing, given they are underpaid compared to most professions (reputations about vets having a license to print money to the contrary).

That’s the good I can see, although I will point out neither of those have much to do with my eternal “relieving suffering” question, and I have some issues about how well bonuses work out for nurses, it being much harder to work out how much they have contributed to the practice earnings.

What about the bad?

Cherry picking

bonus_Fotolia_139431585_rudall30
“Is bonus culture ‘wrong’? I’m not sure, but it feels at least inappropriate for a medical profession.” IMAGE: rudall30 / Fotolia.

My main concern about bonuses is the development of a “bonus culture”, which is something I have noticed in many practices with these sort of schemes.

Whether it’s deliberate, or even conscious, I’m not sure, but it leads to a certain mentality throughout the vets (or at least some of the vets) working in these environments. Higher-paying procedures tend to be prioritised, cherry-picked or quietly fought over, while the lower-paid stuff is left.

Telephone messages won’t get you any earnings, but getting your name behind three-months worth of heart medications can be pretty lucrative, an x-ray series is going to net significantly more than a home visit for a vaccination, and selling the flea treatment and worming in your consult room is better than letting the client buy it out on reception.

As I said previously, I think most of this is not deliberate and I am not suggesting animal welfare is compromised because of this – I don’t recall ever seeing that happen – but it leads to a certain mentality that I, at least, am not comfortable with.

Unhealthy competition?

Bonus culture leads to a certain level of competition among vets, and while I’m told competition can be “healthy”, my general experience of it in other walks of life is that it leads to worse service with ever-increasing prices (although that’s probably just my political leanings poking their way to the fore, despite me trying to squish them).

Is bonus culture “wrong”? I’m not sure, but it feels at least inappropriate for a medical profession. I think much of my problem is I like to think of medicine as fundamentally altruistic and caring, when veterinary medicine is and always has been a business, and the bottom line is it’s all about the bottom line – corporate practices are more honest and up front about this than practices have been in the past.

However I feel about the culture (and I’m prepared to admit there’s a lot of personal bias and, probably, naivety, in my opinion of it), the net effect of it is to drive up prices, which is surely the point of the bonuses in the first place, and that’s where I start to worry. Vets, even though they personally don’t have the salaries to match, are not cheap, and are definitely not getting cheaper, and that leads me back to my original question – will it be better or worse at relieving suffering?

At a cost

I genuinely don’t think welfare or professionalism has been compromised by corporates. In fact I think it’s likely people taking their pets to be treated will get as good if not better service than before, but it will come at a cost – literally.

As fees rise, fewer people will take their pets to vets. I worry about two tiers of pets – those that see the vet and those that don’t. I know this already happens, but with corporatisation, the number of animals that never see a vet is going to get bigger. That means more pressure on charities, more animals being rehomed and, ultimately, more suffering.

Hopefully, I’m wrong. This is an area I have less experience than most of my blog topics and I’m worried my own philosophy may be clouding my view.

I’d appreciate other opinions: what do you think?


Comments

6 responses to “Bonus culture”

  1. Carol Gray Avatar
    Carol Gray

    Is it any different to bonuses given to GP practices for achieving targets for screening, for example? Could a similar strategy be used in the veterinary context to decide on bonuses – on a practice wide level, rather than for individual vets? Any thoughts as to how this could work?

  2. Tim Mainland Avatar
    Tim Mainland

    Our profession is still in a fairly early, if rapid phase. While there are still plenty of practices to buy, the corporate power masters will continue to focus on acquisition and then integration of those newly acquired units into their lower overhead system. This brings a fast return on their investments and enables them to show good figures either to their shareholders or to the next round of equity refinance. All this leaves the atmosphere at the coalface relatively benign …..for now. I
    don’t see much changing for a few years.
    Then practice acquisitions will get a whole lot harder. The cherries will have been picked, and the remainder will be hard-core Inde practices. There may then be a merger phase as corporates themselves eat each other.
    After that…..tbe action will have to move to the coalface. The equity finance group at the time will want to pass the red hot potato and make a buck. Ã’R the shareholders will want a good pay day that year…..every year. The following round will have a new plan, with few acquisitions, to make their 2 year dollar out of us. And so, the focus will then be on us. Yes us at the coalface. Performance, bonuses, all that will be centre stage. Results will be driven hard to get the desired result for the next inevitable big sale. Evidence? Just ask an AA man. They have been sold countless times now, the pension fund is in a state to make Philip Green look like a saint, and the guys in the yellow vans are flogged and measured to get the maximum number of breakdowns covered per shift….by an ever reducing fleet.
    So where does this leave us vets? Well, by the time all is said and done, vet practice will be very homogenous. Bland and unvarying.
    So here’s the thing……we are VETS. VETS ARE SPECIAL! And we are like cats when it comes to herding us! The totally corporatised profession will leave a big big opportunity for us to take it in a new direction. To differentiate the true and caring profession into a world of….not for profit? (that doesn’t mean low salaries). How about staff owned cooperatives? How about a rash of new, linked, but independent start ups?
    It’s our profession……

  3. Robin Hargreaves Avatar
    Robin Hargreaves

    As an owner my income has always been linked to practice performance. Pay reviews similarly have been linked to what is available above and beyond last year ( for everybody) so I cannot dismiss bonus schemes out of hand. However a bonus based on personal fee/sales generation in veterinary practice is an anathema to me.

  4. sam roberts mclellan Avatar
    sam roberts mclellan

    Having also worked in the fields of dentistry and optics I can confidently say that in my experience bonus paid on sales driven practice more often than not leads to unscrupulous up-selling and compromises the service provided to those clients/patients that cannot afford to keep up. It effectively ostracizes those that need us the most.
    I have seen it invite unwelcome competition among professionals serving under the one roof, conflicting advice given out based on how keen the staff are to push ££ and don’t even get me started on ‘corporate’ practices.

    Veterinary life is stressful enough without introducing additional pressures, we offer a bespoke service, a kindness and honesty that is to be revered and encouraged. The veterinary profession should be an ethical benchmark to aspire to, not another cash-hungry service industry to be undermined by KPIs and ‘Employee of the Month’ mentality.
    I believe it to be unethical to combine bonus culture and health based practice, I have yet to see how the two can be aligned honestly.

  5. Rose Unsworth Avatar
    Rose Unsworth

    KPIs. You have a base salary and every month your take is calculated. Then if you meet the baseline target you are paid 25% of the extras. Sadly I am aware of the fact that for many of our clients I am asking for their total disposable income for the year to fix their pet. If I go for gold standard, bloods, X Rays, biopsies, ivft, and histology and then advise them that there are no treatment or surgical options then I am on a winner and my salary will reflect this. However, if I use my clinical skills and experience I can often advise the owner that I am fairly certain of what is going on and what the outcome could be and make the time to work through options.
    So often clients are steamrollered down a work up in order to generate income or even worse to allow the vet to play a text book role.
    As a profession we have a lot to answer for and some of it is not pretty

  6. Donald McLean Avatar
    Donald McLean

    I belive that bonus schemes based on turnover will lead to a total lack of trust in the proffesion which has been built up by many generations of hard work and dedication. I cannot think of any bonus schemes that are of benefit to the client. The royal college needs to takea lead on this – they are supposed to be protecting the public and their animals and controlling the profession.

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