As I wrote in “Forgoing an Estimate Can Cost You,” providing one is more important than ever given the cost of veterinary care, the uncertain economy and pet owners’ rising concerns about how much they spend at animal hospitals. I also discussed in the article (bit.ly/estimates-TVB) the big-picture issues a practice should consider when reviewing and updating its estimates process, including the overall value provided to clients, educating them about payment alternatives, and deciding which service and product estimates you should give.
This time, I’ll go into more detail about estimates and the conversations the veterinary team should have with the pet owner.
Ultimately, the goal of an estimate is twofold:
- The estimate should provide enough information so pet owners understand the care they agreed to and that no surprises will occur when the final bill comes.
- It should be written and communicated in such a way that it adds value to the medical recommendations and encourages pet owners to accept them.
Q: What should the veterinary team call the document?
A: The most common term is the one I use: estimate. Some veterinary professionals think they should call it a “treatment plan,” “health care plan” or something similar because the terminology adds value to the process. I’m not opposed to those terms, but they don’t replace the need to provide accurate information and spend time discussing the cost of recommended care with the client.
At the heart of the value is how the veterinary team made initial recommendations to the pet owner and the follow-up cost conversation. It doesn’t matter what you call the document if those tasks were done poorly.
An estimate is widely understood to be an approximate number, not a fixed price. The team must make clear to the pet owner that the cost of care could change as the treatments progress and the pet’s condition changes.
Q: How can a practice make clear that estimates are not guaranteed prices?
A: First, use “estimate” in the document’s title. If your practice prefers saying “treatment plan” or “health care plan,” still include “estimate.” For example, title the document “Treatment plan estimate.” Include a range of costs, whether by line item or the total.
Clients tend to recall the lower end of a range even if the document shows a higher amount, so don’t make the former unrealistically low. Add a sentence at the bottom that reiterates the estimate could change depending on the pet’s response to treatment. In addition, be careful not to make the high end so extreme that it scares off pet owners. The goal is a price range that most similar cases fall into.
Q: Should estimates be broken into “good,” “better” and “best” recommendations?
A: I’m not a fan of that approach because pet owners might think they should pick the services they want and that all the recommendations are somewhat equal. The estimate should include all the services the veterinary team believes will result in the best prognosis. The medical plan can change during the discussion if the pet owner has cost concerns and the doctor and pet owner agree on a different strategy.
Q: Who leads the conversation — the veterinarian, technician or client service representative?
A: Assign the responsibility to the lowest-level person involved in the case who communicates well and has enough medical knowledge to explain the line items. Frequently, that person is a technician or doctor. Veterinarians don’t need to discuss every estimate with a pet owner, but they should lead the conversation in complex cases and with certain owners.
Q: What if a client takes the estimate to another clinic and asks for competitive price adjustments?
A: Just say no. If you usually charge $150 for a CBC/chem test, I wouldn’t reduce it to $100. However, you could consider adjusting the level of care to one that costs less (if appropriate medically). For example, instead of doing a CBC/chem with 20 chemistries, maybe 10 chemistries are OK.
Q: What if the final cost far exceeds the estimate?
A: If your practice messed up and didn’t provide a reasonable estimate, take responsibility and eat some of the cost. The same goes for a complex case when you failed to update the client about the costs and patient’s progress and didn’t allow the client to decide whether and how to continue care. However, you should expect the client to pay if you compiled the estimate correctly, the costs were within reasonable proximity of the high end and your team kept the client apprised of the progress.
Q: Any other recommendations?
A: Consider adding a written statement that you will honor the prices until a specific date. This option is less critical if you’ll provide the veterinary care reasonably soon, but a client might delay some services, such as a dental procedure, for several months. In addition:
- Create templates for typical estimates. Doing it can save a lot of prep time.
- Incorporate a client’s acknowledgment of the estimate. The pet owner should agree to the work and indicate an understanding of the costs.
- Provide a paper or electronic copy of the estimate to the pet owner. Also, note pertinent comments from the client discussion in the medical record, especially if the possible costs were discussed and approved by phone.
Remember that your practice and the client are on the same side. You both want to do what’s best for the pet. The estimate process finds a pathway that works for both parties.