Presentation on theme: "Presented By: Daniel J. Patton, MVSc, MBA & Will Novak, DVM, MBA,Dipl ABVP Prepared For:"— Presentation transcript:
Presented By: Daniel J. Patton, MVSc, MBA & Will Novak, DVM, MBA,Dipl ABVP Prepared For:
About Us Prevent Plans the parent company of Well Pet Plans is a privately held company. Prevent Plans-developed specifically for operating plans in human healthcare (Dental, Vision, Chiropractic & Massage). Well Pet Plans-developed specifically for veterinary medical practices Proprietary web based system for processing, and management of veterinary plans. First preventive healthcare plans available to all veterinary practices. Flexible and customized for individual practices. Current offerings include plans for: Adult Dogs, Cats, Puppies & Kittens
Well Pet Plans Overview Subscription based financial model for veterinary practices. Preventive Healthcare Plans for clients Pets/Horses, purchased through a providers practice, and contracted to that providers practice. Membership based plans with monthly payments based on annual agreement with automatic renewal. No co-pays or deductibles for the member. 3 Plan levels for adult dogs and cats, 2 plan levels for puppies, kittens and 2 levels for horses. Client and provider choose the plan level that’s the best fit for the clients Pet/Horse and their budget.
Well Pet Plans Services Include: Client Services - We handle your clients questions and concerns regarding their plans. We help to close enrollments and keep cancellations to a minimum. A/R & Debt Collection – We handle for your practice all related A/R, including: expiration dates, delinquent payments, etc. For those accounts needing further debt management, we provide full collections. Payment Processing – We provide every payment option needed, via credit card, debit card and e-check, both monthly and annual. Training – We provide training to your staff on how to use our system, enrolling clients, processing, etc. Marketing – We provide your practice with State and Federal DOI approved marketing materials and supplies to get you started, and keep you running. Legal/Regulatory – We provide all State and Federal regulatory, legal filings and updated marketing material/contracts.
Preventive Plans Overview Plan design based on corporate practice model. 20+ yrs experience in design, implementation and usage of plans. 1 million+ plans in use by pet owners. In use in 800+/- small animal corporate practices. Consistent performance in all regions of the US. Key source of profitability, productivity and growth. *Based On Corporate Plan Data
Key Results Practice Saturation Rate for New/Existing Clients Renewals Client Loyalty Summary Results
Practice Saturation and New Client Targets On average, a well managed private practice will enroll 44% of their active clients 28-33% of new clients *Based on corporate plan data
Practice #A Scottsdale, AZ Practice results shown are based on (2) quarters of data. 255 Total Pets enrolled on plans in 1 st & 2 nd qtr 156 Pets, or 61.1% enrolled are existing clients 99 New Pets/Clients, 38.8% enrolled on plans Plan Mix: 67.8% Platinum, 11.3% Gold, 20.7% Silver Platinum Plan- greater revenue and margins
Renewals Renewal rate 80%+ annually Influenced by client service levels Influenced by utilization rates *Based on combined corporate data and Well Pet Plans data
*Data represents a random sampling of practice renewal rates 2010 Well Pet Plan Rate Average: 89.9%/ 2011 - 91.2%
Client Loyalty Survey results have shown that an average client will use up to 3 veterinary practices for their services. Plans decrease client drift Additional services outside of plan Average Annual Patient Charges 2-3x *Based on corporate plan data
Practice #A-Scottsdale, AZ (2 Qtr Results) 156 existing clients enrolled Pets on plans. Clients who enrolled their Pets spent $433 in previous (12) months in practice. Clients enrolled on plans spent $624, or $193 more in practice than previous (12) months. 30.9% increase in revenues from existing clients.
Utilization Utilization, or the amount of services used annually, on average, is a defining key in plan profitability. The average practices overall plan utilization is between 45-55%. Clients perceived value in the plans provides strong annual renewals.
Plan Pricing for Practices Practices plan pricing is determined based off of many metrics such as: demographics, costs of services/products, average labor costs, etc. We have nine different pricing levels for practices. Plan pricing is finalized by joint decision with practice and Well Pet Plans.
Example #1 Each Plan the Client is Charged: $89.95 Membership Fee-Horses & Puppies/Kittens, $59.95-Adult Dogs/Cats (One Time) $36.95/Mo. Payment (Avg. Mix) Well Pet Plans Costs $3.32/Mo./Plan (9% of monthly fee/pet) $10.00/Membership Fee What the practice receives: Membership Fees (As Stated Above) $33.63/Mo. Payment (Avg. Mix) or $403.56/plan per yr If the practice has 1500 active clients and just 33% (500) sign up (1) pet $24,975-$39,975 in Membership fees (Depending on Plan Mix) $201,780 per year in subscription fees or $16,815/mo, Not including other fees spent by client outside the plan, which typically increase by 20-30%
Example #2 Each Plan the Client is Charged: $89.95 Membership Fee-Horses & Puppies/Kittens, $59.95-Adult Dogs/Cats (One Time) $36.95/Mo. Payment (Avg. Mix) Well Pet Plans Costs $3.32/Mo./Plan (9% of monthly fee/pet) $10.00/Membership Fee What the practice receives: Membership Fees (As Stated Above) $33.63/Mo. Payment (Avg. Mix) or $403.56/plan per yr If the practice has 2500 active clients and just 25% (625) sign up (1) pet $31,219-$49,969 in Membership fees (Depending on Plan Mix) $252,225 per year in subscription fees or $21,019/mo, Not including other fees spent by client outside the plan, which typically increase by 20-30%
Royal Canin Program Practices will offer RC Veterinary Diets to Well Pet Plan clients, at a 15% discount. Food is added to clients Well Pet Plan, through our system, and shipped to clients home. No-Touch product for practices, with residual food sales, and solid profit margins.
What can our Equine Plans do for your practice? We believe that like our small animal plans, you will see similar revenue increases in your equine clients who enroll on plans. Equine clients increased likelihood to utilize only your practice. By utilizing the Equine Plans, your clients horses will receive the preventive care they need, to help keep them healthy.
Equine Plans Each Plan the Client is Charged: $89.95 Membership Fee (One Time) $38.95/Mo. Payment (Avg. Mix) Well Pet Plans Costs $3.50/Mo./Plan (9% of monthly fee/horse) $10.00/Membership What the practice receives $79.95 Membership Fee $35.45/Mo. Payment (Avg. Mix) or $425.40/plan per yr If the practice has 600 Equine plans enrolled $47,970 in Membership fees $255,240 per year in subscription fees or $21,270/mo, not including other fees spent by client outside the plan.
Results Plans move practices from single sales to subscription based model Increase revenue from existing clients Consistent Cash Flow Increased Client Retention Increased Productivity Increased Profitability
Summary Enrollment rate target for new clients 28%-33% Saturation target of 44% active clients Renewal target 80%+ Improved financial performance Utilization at 45-55%, but paid at 100%