Paul H. Jaffe, DVM, faced a dilemma familiar to many pet owners. A few months ago, he found a lump on his dog, Missy, so he took her to a veterinarian for an examination.

As an experienced veterinarian and medical lead at Zoetis Diagnostic, Dr. Jaffe knew the traditional timeline for examination, diagnosis and treatment. In the past, it would have taken a couple days to get back an FNA result and then perhaps a few more days to have a clinical pathologist review the slide.

But with the latest technology, the turnaround time for a diagnosis and treatment plan were greatly reduced. First, the local veterinarian used the Zoetis Vetscan Imagyst to evaluate a fine needle aspirate of the lump. In a matter of minutes, the lump was identified as a Mast Cell Tumor.

“As a veterinarian myself, I wanted to know more, such as mitotic index and perhaps the grade of the tumor,” Dr. Jaffe said. “This additional information would help me and my veterinarian to decide on the next best course of action and prognosis. Since the cytology had already been scanned and uploaded to the cloud, it was a simple process to have the slide evaluated by a boarded clinical pathology without having to send a slide off to a reference laboratory.”

By the end of the day, Dr. Jaffe was able to have a diagnosis along with a detailed report from a boarded clinical pathologist. With the Vetscan Imagyst AI and the availability of a path review 24/7, results were obtained faster to expedite surgery.

From reference lab to in-house

The capabilities of today’s advancements are exciting, especially when viewed through the lens of how far lab diagnostics have come over the last three decades.

When Dr. Jaffe graduated veterinary school in the early 1990s, lab diagnostics for the most part were limited to sending samples out to a reference laboratory and waiting 24 to 48 hours for results. “We were able to do some testing in-house, such as blood glucose and urine chemistry testing; however, doing blood smears, urine sediment analysis and FNA cytologies were more time consuming and really relied on the individual skill of the veterinarian to do in house,” he said.

It was almost a decade later, in the early 2000s before veterinarians had access to in-house hematology and chemistry analyzers to help with in-house diagnostics. “Now, almost three decades later, we have the ability to do many of the common diagnostic testing at the point of care with the same accuracy of the reference lab.”

The Vetscan Imagyst, now five years since its release to the veterinary market, has brought reference laboratory accuracy to the veterinary space in a multitude of applications, Dr. Jaffe said.^1-11 The platform now has seven different applications and more are on the way. “We continue to not only add new indications, but our clinical pathologists are continually improving the algorithms behind the scenes to further enhance what the Vetscan Imagyst identifies within the samples,” he said.

As the indications continue to roll out, no additional hardware or equipment is needed, freeing counter space within the practice. This analyzer is designed to give every veterinary practice, no matter the geography or level of training of the veterinary staff, access to specialist-level results at the point of care.^1-11 It also improves efficiency within the practice by providing consistent results, no matter the level of training of the veterinary staff, the day of the week or time of day that the test is being run, he said.

The Vetscan Opticell, meanwhile, has introduced a brand-new technology to the veterinary space. Just like the Vetscan Imagyst, the technology that powers the Vetscan Opticell was brought over from the human medical space to transform how hematology is performed in practice.

“It has been almost 20 years since new technology has been introduced to veterinarians to get fast and accurate hematology results,” Dr. Jaffe said. “This new technology can analyze and evaluate cell morphology to not only identify abnormal cell morphology but to recommend further evaluation to the veterinarian through a blood smear. The AI is saying, ‘Here are your quantitative results, but I am also seeing some concerns and you need to do a blood smear to further assess what is going on with this patient.’”

AI integration

Integrating AI into veterinary practice isn’t just about technology — a change in mindset must occur. “The biggest challenges I see with integrating AI into a veterinary practice is both a behavior change in adapting a new workflow and trusting the AI,” said Dr. Jaffe. “Veterinarians have always done all the work themselves, or they trained a technician to do some of the work. They may initially struggle to adapt to the new technology, and some want to go back to the way they have always done it.”

Embracing the integration of AI into practice means relinquishing some control and learning to trust the technology they’ve invested in. By relying on AI to deliver accurate, dependable results, practitioners can focus on applying their expertise — interpreting those results, formulating diagnoses, and developing treatment plans that allow them to practice at the highest level.

In recent years, AI has begun to transform daily veterinary work, improving efficiency, reducing staff workload and bringing specialist-level medicine to the point of care. “I think that in the next 5 to 10 years, many of the current applications of AI will continue to improve in their accuracy and adoption as the hesitation around trusting AI decreases,” Dr. Jaffe said. “I also think that as veterinary schools introduce future veterinarians to the use of AI, new veterinarians will have more familiarity to this modality and adopt it quicker.”

Deep learning AI is expanding the range of what can be detected, from parasites in fecal tests to abnormal cell morphologies in blood smears and cytology applications. Using the Vetscan Imagyst and Vetscan OptiCell together, veterinarians can now perform a full blood count and blood smear evaluation at the point-of-care in about 10 minutes. “If the Vetscan Opticell identifies abnormal cell morphology through its

AI, the blood smear that has already been scanned by the Vetscan Imagyst can easily be reviewed by a board-certified clinical pathologist^* with results back in just hours, rather than days,” Dr. Jaffe explained.

Maintaining a human touch

AI is transforming veterinary diagnostics, but human expertise remains central to the process. “With the introduction of AI into the veterinary space within only the last few years, it is not uncommon for veterinarians to sometimes question results,” said Dr. Jaffe. “Although our AI has been trained by experts, there are elements in every Vetscan Imagyst application that the AI has not yet been trained to identify. For this reason, we never remove the human intelligence option from the AI. If the veterinarian disagrees with the AI results, or if they are concerned about something that the AI has not yet been trained to identify, they can always request an expert review.^* This feature allows the veterinarian to have the slide, which has already been scanned and residing in the cloud, be reviewed by a board-certified Clinical Pathologist or parasitologist.”

After five years in real-world practices, Zoetis has learned key lessons about adoption — the first being that adoption of AI by some veterinarians takes time. “Veterinarians may initially struggle to adapt to the new technology. Embracing the integration of AI into practice means giving up some of the responsibility and trusting in the technology,” Dr. Jaffe explained.

He noted the growing demand for AI in everyday practice. “Veterinary practices are facing both staffing challenges and time crunches to see the increasing number of cases daily,” Dr. Jaffe said. “Clients don’t want to wait days for results, and staffing issues limits how much testing can be done in-house. Bringing the accuracy of a reference lab to the point of care addresses both issues.^1-12 Staff can focus on patient care and appointments rather than staring in a microscope. From the initial rollout of our AI applications to real world practices, we continue to look at which diagnostics would be most meaningful to practicing veterinarians and benefit their practice and patients the most.”

References:

1. Data on file, Study No. DHX6Z-US-23-205, 2024, Zoetis Inc.;
2. Data on file, Study No. DHX6Z-US- 23-206, 2024, Zoetis Inc.
3. Data on file, Study No. DHX6Z-US-23-209, 2024, Zoetis Inc.;
4. Data on file, Study No. DHX6Z-US-24-257, 2024, Zoetis Inc.
5. Data on file. Study No. DHX6Z-US-24-242, 2024, Zoetis Inc.;
6. Data on file, Study No. DHX6Z-US-24-275, 2024, Zoetis Inc.
7. Data on file, Study No. DHX6Z-US-24-276, 2024, Zoetis Inc.;
8. Data on file, Study No. DHX6Z-US-23-222, 2023, Zoetis Inc.
9. Data on file, Study No. DHX6Z-US-22-131, 2022, Zoetis Inc.;
10. Data on file, Study No. DHXMZ- US-25-285, 2025, Zoetis Inc.
11. Data on file, Study No. DHXMZ-US-25-286, 2025, Zoetis Inc.;
12. Data on file, Study No. DHXMZ-US-24-235, 2024, Zoetis Inc.

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Optimizing Labs, Protecting Clients

Rising diagnostic costs and operational challenges are forcing practices to rethink workflows and vendor partnerships, says one independent veterinary laboratory consultant.

When Rachel Lemcke, MS, started her independent veterinary laboratory consultant business five years ago, a primary focus was helping veterinary practices boost lab profitability.

But market forces have shifted her focus. As laboratory costs continue to climb and vendor contracts become increasingly complex, practices are facing new financial pressures that affect both practice operations and affordability for clients. “Now, I see my role as helping make vendor costs fairer and more equitable for practices,” she said.

Lemcke’s work as founder of Amwell Data Services LLC now centers on advocacy, helping practices rein in vendor costs and use data to make more informed decisions. “My goal is to help bring down those rising costs, and hopefully, when practices save money, some of those savings get passed on to clients, making veterinary care more affordable for pet owners,” Lemcke said. “Because I think the veterinary profession is facing what I’d call a bit of a car crash when it comes to [client] affordability across the board.”

Rising costs and shifting dynamics

Laboratory expenses began to spike dramatically after the pandemic. “Within the veterinary space, vendor prices definitely jumped,” Lemcke said. “Pre-pandemic price increases were typically around 4.5% per year. But during the pandemic, there were often two price increases per year, and those added up to double-digit jumps.”

Some practices saw their lab costs rise by 15% year over year, “three times what they had budgeted for,” she said. That level of volatility forced clinics to make hard choices like rolling those higher costs directly onto the consumer, risking client compliance. Some practices entered into new contracts just to gain some cost predictability.

“The challenge is that most veterinarians aren’t trained business experts,” Lemcke said. “While we’re seeing more CVPMs and business-minded roles in practices now, that knowledge base is still developing.”

These pricing pressures often get passed down to clients, but not always in ways that make sense. Lemcke coined the term “umbrella multiplier” to describe the blanket pricing approach many clinics still use. “It’s basically a blanket pricing approach that’s applied across the board, but it becomes very inconsistent quickly,” she explained. For example, charging clients 2.5 times vendor costs may not sufficiently cover all the practice’s labor and supply costs, plus the desired profit.

From her perspective, most practices’ pricing models for lab services “don’t actually benefit them as much as they think they do.” Her data, she said, shows that current methods may not maximize profitability or encourage client compliance.

The contract conundrum

When Lemcke works with veterinary teams to assess their lab management, she often encounters the same misunderstandings. “One big misconception, especially among independent practices, is that they don’t think they can negotiate. Or, if they do think they can, they’re not sure what they can negotiate,” she said.

Confidentiality clauses make it nearly impossible for practices to legally compare vendor contracts, and that opacity breeds misinformation. “People often assume that everyone is paying or operating under the same terms, but that’s just not true,” Lemcke said. “Each contract can have completely different structures, rebates, incentives or other levers that change the real costs.”

Another common belief is that a practice must have a contract to operate efficiently. “You don’t,” she said. “Many practices assume that being under contract is the only way to operate, but it isn’t.”

For some clinics, especially startups, flexibility matters more than up-front incentives. “The ability to stay flexible and renegotiate on their own timeline is more valuable than the up-front savings. They don’t want to feel married to a vendor,” she said.

While vendors sometimes claim they’ll renegotiate terms anytime, Lemcke cautions that “verbal assurances don’t carry much weight in a legal contract.” Understanding what’s negotiable and what the trade-offs are is key.

Optimization in action

Beyond contracts, Lemcke helps practices fine-tune their lab setup and workflow with changes that can save significant time and money. “One of the biggest aspects is making sure the space layout truly fits how the team uses it day to day,” she said.

She recalled one client who planned to operate a small local reference lab. By simply moving an analyzer that used frozen consumables closer to a freezer, the team saved steps and time daily. In another case, upgrading to a faster analyzer reduced CBC runtime from 12 minutes to 2 ₁/₂ minutes, drastically improving efficiency.

Optimization, she said, also includes deciding which tests should be done in-house versus sent to a reference lab. “Sometimes shifting tests one way or the other improves both cost and workflow.”

Her consulting sometimes even leads to mid-contract renegotiations. “In one instance, I helped a client renegotiate a new contract with the same vendor, mid-term, almost like refinancing a mortgage. Over six years, that change was projected to save them about $341,000 [compared to their previous agreement].”

Building better relationships with reps

For distributor and vendor representatives, Lemcke said there is tremendous opportunity to strengthen relationships by focusing on collaboration and transparency. “One thing practices really appreciate, in my opinion, is less competitor or vendor bashing from reps,” she said. “It’s fine to talk about the pros and cons of different products — that’s part of the job. But speaking negatively about another company rarely lands well.”

If a product is superior, she added, “show the data. Share the white papers, not just the glossy one-pager.”

Respecting clinic time is also crucial. “Unannounced drop-ins can be really disruptive,” Lemcke noted. “Scheduling ahead shows respect for their time.”

While she works primarily with independent practices, Lemcke emphasized that her approach isn’t adversarial. “Most reps I’ve worked with, nearly all, in fact, have been gracious and collaborative,” she said. “My goal isn’t to slow the sales process; it’s to educate and advocate so both sides reach a fair, realistic agreement.”

The key, she noted, is finding the “best-fitting vendor partner” for the long term. “It might not have the fattest margins for the vendor, but it should be a lasting partnership.”

The bigger picture

“Financial fragility” sits high on Lemcke’s radar, especially given its implications on client affordability and client compliance. Since learning about the April 2022 JAVMA article on pet owner finances and access to care barriers, she’s become increasingly concerned with the convergence of rising lab costs and tightening client budgets towards that $400 limit. “If diagnostics or treatment push that $400 mark, a lot of clients simply can’t afford to proceed, even if they see the value,” she said. “It’s like being offered a Ferrari for $1,000 cash when you only have $20 in your wallet.”

For practices, distributor reps and vendors alike, this reality underscores a shared responsibility to make veterinary care both sustainable and accessible. As Lemcke put it, “I’m not chasing the cheapest offer. What matters is the best-fitting partner for the practice, [a vendor] who aligns clinically and financially for the long term.”

By working together with an eye toward fairness, flexibility, and transparency, the veterinary community can create a more stable future for practices, pet owners and the pets who depend on them.

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Building Better Lab Partnerships in Veterinary Medicine

Managing partner and longtime veterinary professional Holly Daugherty shares how trust, training and teamwork shape successful lab operations — and why the right vendor relationship goes far beyond technology or pricing.

In today’s veterinary landscape, diagnostic testing plays a critical role in patient care and practice success — but choosing the right laboratory partner can be a challenge. Between shifting ownership among major players, varying service levels and the pressure to keep testing affordable for clients, veterinary practice leaders are balancing business needs with their commitment to quality care.

For Holly Daugherty, BSBA, LVT, CVPM, FFCP, CCFP, managing partner of Chesapeake, Virginia-based Vital Veterinary Care, LLC, that balance has not always been easy to maintain. With more than 18 years of experience in veterinary medicine, Daugherty has seen the lab diagnostics market evolve — and sometimes frustrate — practices like hers.

“I’ve had disappointing experiences with several of the large diagnostic providers in the 18-plus years I’ve been in veterinary medicine,” she said. One recent vendor originally stood out because they emphasized treating their employees (and ours) well, producing high-quality results, and being a values-driven alternative to the big names,” Daugherty said. But when they sold to a larger company, it felt to Daugherty like the same story all over again. “It’s frustrating to invest in a partnership that aligns with your values only for it to change course.”

In an interview with Vet-Advantage, she shared her perspective on what veterinary teams value most in a diagnostic partner and why consistency, transparency and alignment in values matter as much as turnaround time and pricing.

What are some of the biggest challenges your team faces in managing lab operations day-to-day?

Daugherty: Most of our lab-related challenges are tied to caseload and technician proficiency, particularly when it comes to balancing speed and accuracy. The learning curve is steeper for certain diagnostics, like reptile and avian CBCs or fine-needle aspirate cytologies, so experience makes a big difference. We have a thorough machine maintenance checklist and inventory management system, so supply shortages or equipment failures are rarely an issue.

How do staffing or workflow pressures affect your ability to run lab tests efficiently?

Daugherty: Staffing absolutely affects efficiency. When the team is short-handed, testing can fall behind. We might not take the time to thoroughly advocate for lab testing in the first place because there are only so many hours in a day. That’s why cross-training and clearly defined workflows are key. When everyone knows how and when to run labs, the process stays smooth even when things get hectic. Each team member can carry a test to a certain point of completion depending on their role.

How do you track or measure the profitability and clinical value of your lab services?

Daugherty: The easy way is to look at costs versus revenue, and compliance with recommendations — plenty of benchmarks exist. But the more valuable measure is outcomes-based. If there were an efficient way to track every time a diagnostic test leads to earlier detection or changes a treatment plan, that’s the kind of value we want to quantify.

What role does training or education from vendors play in helping your clinical team use lab equipment effectively?

Daugherty: Training is essential. It’s not just about learning to operate equipment, but about understanding what the results mean and how to troubleshoot when something seems off. I hadn’t experienced vendors playing much of a role in that aspect outside of initial purchasing of equipment.

What factors are most important when selecting a lab vendor or diagnostic partner?

Daugherty: Turnaround time and pricing are both important. We want to keep diagnostics affordable, encourage clients to say “yes” to testing more often, and still make sure it’s sustainable for the hospital.

What does a strong lab vendor partnership look like from your perspective?

Daugherty: They communicate proactively, support us when questions come up and demonstrate that they care about outcomes. If something goes awry they make it right — great customer service is critical.

How often do you evaluate or revisit your vendor relationships?

Daugherty: We don’t have a regular or formal process for evaluating vendor relationships, but it’s always appreciated when our representatives take the initiative to check in, review performance and see how things are going.

Have your lab capabilities changed in recent years, either expanded or scaled back? If so, why?

Daugherty: We haven’t made any changes to our current lab capabilities. In previous practices, though, in-house testing was often impacted by staffing levels. When teams are stretched thin, it can be difficult to manage in-house testing alongside everything else. At Vital Vet, we’ve worked hard to create systems that prevent that, so diagnostics remain a consistent part of our patient care.

How do you decide which tests are best performed in-house and which are outsourced?

Daugherty: It comes down to timing, complexity, and practicality. If a result is going to significantly change what we do for the patient today, we’ll run it in-house. If it’s something that can safely wait, like wellness panels or monitoring labs, we send it out. We send out any labs that aren’t urgent for us to have results, and most cases fall into that category.

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