What to expect in the veterinary industry from the new normal that COVID-19 has created.

In June 2018 I wrote an article titled, “Embrace Disruption or Be Eliminated.” Well, disruption is here in several forms, and it’s being escalated by the COVID-19 pandemic and related events.

The pandemic has changed customer flow and has forced many to seek services in alternative ways. This change in customer flow will likely change the industry forever. Let’s look at some of the disruptive changes, how various stakeholders are adapting, and some recommendations for how you should deal with these changes, and for helping to position your customers to succeed under these new expectations.

Most of the United States has been placed under some form of stay-at-home order from their state government. Government leaders have decided which businesses are essential and which are not. If you are deemed not essential, then you have been effectively shut down or very limited in how and what you can continue to provide.

In most states, veterinary medicine was deemed to some extent as essential, though states such as Michigan severely limited what can be provided by veterinarians and threatened severe penalties on anyone found to be violating their new rules. In most states, some discretion has been given to allow the doctor to determine, on a case-by-case basis, whether a needed service is essential. In reality, the interpretation of state orders has great variation, with some practices almost completely shutting down, and others serving the needs of the clients who call them.

The amount of revenue decline over this past month ranges from 0 to 70% based upon practices I’ve monitored. In some cases, the type of cases and the size of the invoices have changed, with most routine work being postponed, and sicker, more costly cases increasing in frequency during this time period.

Curbside service

Most clinics have gone to curbside service, gathering patient information and the pet outside the clinic, asking clients to remain outside, and with staff escorting the patient to the clinic for services. Communications with clients are done from a distance, using text, video-conferencing, and phone. For the most part, I hear that clients are very grateful that veterinary teams are taking these extreme precautions to protect the health of the client, patient, and their teams. The trend towards more online ordering and home delivery has grown significantly. Telemedicine services have grown their market share significantly, though many practices report that these services haven’t produced significant revenue at least in comparison to revenue lost from decreases in patients
seen in person.

Impact: Long term, expect some clients to continue to request curbside service. Online ordering, home delivery, and telehealth will be considered a new normal and expected by pet owners.

Staffing

Staffing has been a challenge for some practices. Some employees are afraid to come to work, others are simply stressed and have decided to take unemployment. Most practices are trying to provide their teams with the support needed to cope with their disrupted work environment. Others have split into multiple teams to prevent cross-contamination in the event of a COVID-19 positive amongst their teams. On the positive side, practices have gone from operating in a market in which identifying and recruiting talent was very difficult to one in which in a matter of a few weeks, the market is flooded with many talented and hungry applicants who genuinely want to work for a veterinary practice and to make a difference.

Impact: There is a great opportunity to hire new talent in this new market.

Biosecurity

Disinfectant routines and biosecurity practices have gone to another level in this pandemic. From gloves, masks, and gowns, to hand sanitizers and more frequent disinfecting of equipment, facilities, and more frequent hand washing, this is a new normal perhaps more for the average consumer than for veterinary teams, most of whom have practiced these preventatives for years. However, with clients now more educated and aware of their importance, expect all of these procedures to endure beyond the pandemic. Touch-less transactions will be important in every aspect of life. No longer will requiring people to touch a credit card terminal or having staff handle customers’ credit cards physically be seen as appropriate. We must transition to a completely touch-less transaction whenever possible.

Impact: Make biosecurity a visible advantage that clients will value always.

Consumer habits

On the consumer side, their old ways of getting products and services have been greatly disrupted. Even before COVID-19, the usage levels of Amazon, home delivery for groceries and pet food, remote communications capabilities, telemedicine, and telehealth were growing rapidly. Now, with these modalities being a staple in surviving the COVID-19 lockdowns, consumers will continue to utilize these remote services in much higher frequency. Zoom had an estimated 1,900% increase in the number of accounts in the first few weeks of this pandemic. With consumers using online services more frequently, expect rapid growth in on-demand services for pet owners. No longer will they tolerate having to wait for a callback, or not getting immediate help. Services such as Ask.Vet have seen explosive growth in this pandemic and will continue to do so.

Impact: Expect growth in the use of virtual services such as telemedicine and telehealth, in addition to online grocery shopping, pet food purchases, and virtual meetings. Expect on-demand services for pet owners to see rapid growth.

Urban locations

The impact of COVID-19 appears to be hitting urban practices more severely compared to more rural or suburban practices. With many urban locations getting hit hard, and with people in urban areas having to shelter in place in smaller, urban apartments and homes, there have been reports of many people with the ability to do so, vacating their urban environments and going to the country. The numbers in this pandemic illustrate the negative risks associated with these crowded areas. This experience will likely have long-term implications and impact upon people’s choices of where to live. No longer will many people be willing to live in crowded environments that bring back memories of this pandemic time.

Impact: Expect an exodus from urban areas to smaller communities for a few years.

Opportunities abound

Disruption in any industry presents opportunities to those willing to deliver better solutions in spite of the disruption. Disruption often reveals the failings and habits of a system that should have been improved years ago.

Stay positive, recognize the opportunities, and make bold decisions that will lead to better outcomes. As stated in June 2018, embrace disruption, or run the risk of being eliminated.

Advice for working remotely

Lastly, the COVID-19 pandemic has forced millions of people to stay home and for those who still have jobs, to learn to work from home, including some veterinary practice staffs. Many companies are learning that their best people can be very productive working remotely. This also might result in reducing office space, conducting more virtual meetings instead of traveling, and other operational changes with positive benefits.

I made a decision 29 years ago that my ‘office’ was my laptop. Wherever my laptop was located, I was at work. My view has always been that work is about creating value, not about showing up at an office. Showing up isn’t about an office. It’s about being committed and accountable to achieve your objectives.

I helped start and grow a 100% completely virtual company, Ask.Vet, the leader in on-demand virtual care for pets. Here are my recommendations based upon 29 years of working from home for how to be most productive working remotely.

Prepare each day as if you are going to an office or a meeting. Groom and dress professionally. Be presentable, clean, well-groomed, and professional. This approach helps you develop a routine, to stay on time, and focused on the objectives needed to be productive.
Conduct calls and meetings similar to how you would in a formal office setting. Just because you’re home isn’t an excuse to permit children or pets to be unruly, to create background noise, or other distractions.
Ensure that you have reliable, fast internet connectivity. If you can’t communicate effectively and reliably, you can’t be effective remotely. This is just as important as reliable transportation to someone who travels to an office each day. Don’t be cheap. Invest in good communications capabilities.
Use professional systems that allow you to deliver effectively and on time in all respects. Ensure you have modern computer capability, with modern software that will allow you to be effective. Invest in software capabilities that will help you create value.
Stay informed. Monitor trends, news, and financial markets from reliable sources, every day.
Be disciplined in getting regular exercise. This stimulates both physical and mental health.
Create regular, scheduled opportunities to get out of the house (after COVID-19). Get involved in your community by volunteering. This will generate opportunities to meet other people and will generate interaction key to your mental health and stimulation.

About the author

Edward L. Blach, DVM, MS, MBA

Dr. Ed Blach works as a business and market specialist in veterinary medicine. He has a unique background that combines veterinary medicine, market research, business development, and management. Dr. Blach is also an inventor whose professional passion is innovation and improvement. He is co-founder of two current startups: Ask.Vet and IsMyPracticeHealthy.com.

Photo cutline: istockphoto.com/Susan Vineyard

The Impact of Disruption in Veterinary Medicine